Working in an office can be stressful, but dealing with medical expenses can be overwhelming that’s where an FSA can come in handy. FSA or Flexible Spending Accounts can be a lifesaver for anyone looking to save on healthcare costs. However, only some people know how to advocate for it at work.
What is FSA?
An FSA is a pre-tax account that can be used to pay for medical expenses not covered by insurance. Employers set up the accounts, and employees can contribute a set amount each year, as determined by the organization, which is deducted from their salary before taxes. The money can be used for co-pays, deductibles, prescriptions, over-the-counter medications, and medical-eligible items. While the account has rules and restrictions, it can be a valuable tool for reducing medical expenses.
My FSA Personal Journey
I was first introduced to the concept when a new colleague joined my organization and started advocating for FSA or HSA/Health Saving Accounts benefits. I was in my mid-twenties with little to no medical conditions and did not realize what impact an FSA could have. If I had a rewind remote and could return to that time, I would encourage my younger self to join the effort.
Sadly, my colleague left before an FSA account could be implemented; however, they had sowed the seed, and within a few years, it became a benefit provided by the organization. When I signed up and started contributing, I did not realize what impact it would have on my life. I was still in the prime of my life with minimal health issues. I occasionally used it for co-pays for my annual physical, but nothing else.
However, with all the stress, loss, and political tension, my health began to deteriorate when the pandemic started. I visited my primary care physician, chiropractor, and urgent care regularly, and using it for co-pays was helpful. I remembered using up half my allowable amount within two months of chiropractor services for co-pay (That’s another blog post).
Then, I discovered the FSA store, and my life changed. I could now purchase products, such as acne medicine and moistures, facial serums, feminine products, first health kits, and medical equipment, and my colleagues with children were now able to use it children-related expenses. Since then, I have saved hundreds of dollars on medical costs and feel more in control of my healthcare expenses.
Advocating for Flexible Spending Account at Work
Here are some tips on advocating for it at work that I have observed:
- First, it is essential to research the benefits of FSA, potential savings for employees, and employer costs.
- Talk to your HR department and ask if they offer FSA or if they could consider adding it as a benefit.
- Educate your coworkers by sharing your personal experience and the benefits of FSA.
- Encourage your employer to hold informational sessions about FSA or to provide materials in the break room to encourage sign-ups.
Alternatives to FSA
An alternative to FSA is a Health Savings Account, which is similar to FSAs but available for high-deductible health plans. That is the benefit I ultimately want to have in my financial bucket! It is a resource you can pay into and have when you retire for health expenses. Regular prescribed massages are covered within an HSA plan, not an FSA.
Additionally, check with your local pharmacies or insurance companies on the discounts on medication or health services they offer. Lastly, negotiation with doctors/hospitals for lower rates or payment plans is something patients can always explore. Most healthcare facilities offer sliding scale fees for low and very-low-income patients.
Not Yet Convinced?
Advocating for FSA at work can be a win-win for employers and employees. It can reduce stress and financial burdens for employees and lower healthcare costs for employers.
Through my journey, I’ve learned the value of FSA, and I hope more people can benefit from it. We can create a healthier and more financially responsible workplace by advocating for FSA at work.