Plan ahead for medical expenses
At the beginning of the plan year, decide how much you'll likely pay for medical, dental, and vision care. Set that as the amount you'll contribute that amount to your FSA for the plan year. You'll have access to the total contribution amount from day one, even if it hasn't been deposited in your account yet.
And you'll save money because the funds that go into your FSA are contributed before taxes.
Spend your money
You need to use the money in your account before the end of the plan year. If your group allows it, you may be able to roll $550 over into the next year, but any money over $550 at the end of the year will go back to your employer. Check with your employer or benefits administrator to see if this option is available to you.
Due to the COVID relief bill signed in December 2020, employers have the option to allow FSAs to rollover their full amount from 2020 into 2021 and from 2021 into 2022. Similarly, employers may allow members a 12-month grace period to spend down their 2020 or 2021 FSAs. Please contact your employer to determine whether these options are available to you.
Save your receipts
It's important to save all your receipts and explanation of benefits (EOBs) to validate your expenses. It's required by the IRS.
Use your FSA to pay expenses your health plan doesn't cover
Use your FSA to pay for out of pocket expenses that your health plan doesn't cover. Your FSA can pay for expenses like co-pays, co-insurance, prescription drugs, vision care, and dental care.
Use your FSA to reach health plan financial milestones
Until you meet your health plan's deductible, you are responsible for paying for healthcare expenses. Use the funds in your FSA to help pay for eligible medical expenses until you meet the deductible.
Know what your FSA covers
See Eligible Expenses for a searchable list of eligible medical expenses that are covered by your FSA.
Know your FSA balance
Avoid surprises when receiving care or filling prescriptions. Track your account activity so you know how far your FSA will take you before you start paying expenses out of pocket.
You can easily get your current balance by signing into www.bcbsvt.com/mymoney, by accessing your accounts in the Blue Cross and Blue Shield of Vermont mobile app, or by calling customer service.