Northern Cheapskate » health

Rethinking Flexible Spending Accounts

Christina Brown — Thu, 27 Oct 2011 12:30:19 +0000

photo credit: jfcherry

We’ve already started to get open enrollment info in the mail from my husband’s employer. While we won’t be making any changes in our health, dental, or long-term disability coverages, we will be revisting our flexible spending account. (FSA).

We’ve had an FSA for a few years and I like the way it works. It allows us to set aside a portion of our paycheck (using pre-tax dollars) to use for certain health care expenses like clinic co-pays, prescription medications, and deductibles. I’m a stay at home mom, so we don’t have day care, but if we did, we would have an FSA for day care expenses, too.

What I like the most about having the FSA is that it forces me to budget for health care expenses – something that many of us don’t think about until we’re sick. The money goes straight to the account from my husband’s paycheck, so we aren’t tempted to spend the money elsewhere. My plan also uses a debit card – which means we don’t have to worry about paying for co-pays or prescriptions out of pocket when we’re sick. It’s been a huge convenience!

Of course, there are a few downsides. Any money you allocate to a flexible spending account must be completely spent by the end of the year or you’ll lose the money. There is often some additional paperwork to complete in order for expenses to be allowed. You also need to keep all of your receipts for claims you make in case you’re ever audited.

It can be a real challenge trying to figure out exactly how much money to allocate to a flexible spending account.

The first year, I was very conservative and only set aside $500. That didn’t even cover our deductibles for the year – not to mention a surprise surgery and other illnesses we went through.

In year two, we bumped up our contribution to $1,000 ,which covered our deductibles and our prescription co-pays. But one of our sons ended up needing months of speech therapy which quickly wiped out our account.

This year, we budgeted $1,700, and that hasn’t worked so well, either. I had figured my son would still be in speech therapy, but he ended up being done early in the year. While this was a blessing, it meant that we now had too much money in our flexible spending account, and it was frustrating to have that money tied up in an account we couldn’t touch. I think we’ll be able to use up the last little bit in our account (after an eye injury, a lost contact lens, and a series of lung infections), but we’ll be cutting it close.

So now, it’s time for open enrollment again, and I’m trying to decide what the best course of action is. At a minimum, I will want our FSA to cover our deductibles and prescriptions. I may figure out a few clinic visit co-pays into that figure. I’ll be playing with the online calculators at Plan For Your Health and BlueCross of MN before my husband and I decide how much money to set aside for next year.

I do know that I will be putting less into the flex account than we did last year. With the rising cost of gas and groceries, and a few house and car repairs that have decimated our emergency fund, I’d rather have more cash in my savings account than having it tied to health care costs in a flex account.

What are your plans for open enrollment? Are you changing how much you allocate?

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Simple Tricks to Help You Stick to Your Diet

Christina Brown — Thu, 31 Mar 2011 14:16:11 +0000

I’m sure I must have said this before, but I’ll say it again: There are a lot of similarities between watching your waistline and watching your financial bottom line.

You’ve got to burn more calories than you consume, and you’ve got to spend less money than you make. Both take incredible amounts of discipline. There are plenty of ways to trick yourself into saving money.

As I continue on my own weight loss journey, I’m learning a few frugal tricks to help me stick to my diet:

Drink plenty of water. So often when we think we are hungry, we’re really just thirsty. Try drinking water first to see if the hungry feeling goes away. Or if you know you’ll be tempted to overeat at a restaurant or party, drink a lot of water before you go to fill you up.

Watch those portion sizes. Use smaller plates or smaller serving spoons to help you limit those portion sizes.

Splurge (on occasion). Something as simple as a new tube of lipstick or a handful of Hershey’s kisses can be all that it takes to help you get back on track and give you some energy to tackle those goals.

Distract yourself. Chew a piece of gum, brush your teeth, get up off your chair and walk around your house or office. Just do something to keep you from eating out of boredom. If stress eating is a problem, call a friend, or try some yoga.

Whether you’re trying to save money or lose weight, having the discipline to reach your goals can be an overwhelming task. Arming yourself with a few tricks can make it easier.

What are some ways you trick yourself into sticking to your diet?

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Flexible Spending Accounts Help You Save

Christina Brown — Thu, 22 Oct 2009 13:18:00 +0000

Many of you will be getting information from your employer about open enrollment options for your health care in the upcoming weeks.

Don’t just brush this paperwork aside or breeze through it. There is important information that can save you money. This is the time of year where you will determine if (and how much) you will contribute to a flexible spending account (FSA).

If you don’t know how an FSA works, it’s simple: You can set aside a portion of your earnings (using pre-tax dollars) to use for certain health care expenses such as clinic co-pays, prescriptions, and deductibles. You can also set up an FSA for day care expenses.

An FSA can help you lower your tax bill – which is the main draw for most people. But what I like the most about it, is that it forces me to budget for health care expenses – something that many of us don’t think about until they’re sick. My plan also uses a debit card – which means we don’t have to worry about paying for co-pays or prescriptions out of pocket when we’re sick. It’s been a huge convenience!

The downside to a flexible spending account is that if you set aside $1,000, you must spend it all by the end of the year or you’ll lose that money. Depending on how your plan works, you may need to either fill out paperwork to be reimbursed for your expenses, or you may be able to use a special FSA debit card like we do. Regardless of your plan, you must keep all of your receipts for claims you make against your FSA in case you are ever audited.

Be sure to check with your employer to find out all the details on your individual plan options.

The first year we tried having an FSA, we only set aside $500. I was worried about spending that money over the course of the year. HA! That figure didn’t even touch our family’s deductibles, not to mention the surprise surgery and other illnesses we went through.

This past year, I thought we were being smart by budgeting $1,000. We’re usually pretty healthy, and this amount would cover our deductibles and some regular prescription medications. But once again, I didn’t use my crystal ball. I didn’t know last year that my son would require weeks of speech therapy, which quickly wiped out our account.

So now, it’s time for open enrollment again. I’m pretty sure my son will continue to need speech therapy, and we’ll also need to plan for all the usual health care needs.

My plan is to read over the materials carefully, and check out the calculators at Plan For Your Health and BlueCross of MN before my husband and I decide how much money to set aside for next year.

I’ll also do all that I can to take good care of myself and my family, so that we can stay as healthy as possible. I’ve learned now that there are no guarantees for what will happen with your health. So we’ll also make sure we have an emergency fund ready just in case.

What are your plans for open enrollment? Do you have an FSA? How much are you contributing?

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Reflections on the 30 Days With No Soda Challenge

Christina Brown — Fri, 02 Oct 2009 13:00:00 +0000

Well, I survived the 30 Days With No Soda Challenge.

And I must admit, the month was not soda-free as planned. On two occasions, I slipped up and drank a pop without thinking. Sometimes doing things on auto pilot isn’t a great idea! On the third occasion, I just really, really wanted a soda, and I was at a fast food restaurant with the kids and getting a water would have been an extra hassle, and well, I just really, really wanted it.

But three sodas in 30 days is not too shabby. Here’s what I learned from the experience:

Mind over matter. Ninety-nine percent of my soda addiction is all in my head. I’m finally able to tell myself that I don’t want a soda and truly mean it.

Not buying soda saves money. I estimate that I saved about $30 by not buying soda in September. This number is actually probably a little low since I normally buy a soda at restaurants and I didn’t this month. (And restaurant sodas are ridiculously overpriced!)

Not buying soda saves energy. I didn’t ponder the Sunday fliers trying to find pop on sale, I didn’t have to lug the cases of pop around the store, out to the car, and put it in the fridge. I didn’t have to recycle my cans (okay, my hubby always did that anyway, but, still….)

Drinking less soda made me feel better. My stomach felt better and my mood felt better. I just feel healthier overall.

I lost weight. I was only drinking caffeine-free, diet soda when I took this challenge, and yet, I still lost two pounds and kept it off. I don’t crave as many sugary snacks when I’m not drinking soda. Just imagine what I could do if I really tried to lose weight!

So does this mean I’m giving up the fizzy drink forever? No. I’ve decided that it is far too risky for me to have soda in the house (my husband still drinks soda, but he’s been buying stuff I don’t like), but I will allow myself the occasional soda at restaurants and other outings.

I learned that sometimes saving money doesn’t have to be an all or nothing kind of thing. I can enjoy the occasional soda just as I can enjoy an occasional shopping trip. The key is moderation!

How did you do on the 30 Days of No Soda Challenge? Share your stories!

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Save Money: Get a Flu Shot

Christina Brown — Wed, 30 Sep 2009 13:30:00 +0000

Looking to save some money?

Get a flu shot. Or (this year) get two. A simple vaccination against the flu can help save you hundreds of dollars.

Each year my husband, kids, and I all get flu shots. We’ve learned that while the flu shot cannot totally prevent you from getting the flu, it does significantly reduce the likelihood that you will get it, and if you do, it does reduce the symptoms and length of the illness.

I know a lot of people who scoff at the idea of getting flu shots. They offer weak excuses for not getting one: They’re too busy, they don’t want to spend the money, they think it doesn’t work, they say it makes them sick… the list goes on. The truth is that flu shots are affordable. And not getting one can be a costly mistake.

Think about it from a numbers standpoint: The average cost of a flu shot, which can help protect you from getting the flu and/or minimize the length/strength of symptoms is $10-$25. Some health insurance plans cover that cost completely.

Let’s say you don’t get the flu shot, and then you get influenza. At first you try to self-medicate with over-the-counter remedies at a cost of about $15. Then you miss a few days of work, costing you productivity (about $150-$200+/day). Then you are still miserable, so you go to visit your doctor ($30 for a co-pay to as much as $200 for an office visit). The doctor gives you a prescription ($10-$40). And hopefully that takes care of it… but if it gets worse, and you end up in the hospital, all of these numbers increase exponentially.

Not getting a flu shot could cost you hundreds of dollars. And consider what happens when multiple members of your family get the flu!

Talk about expensive! And dangerous: Thousands of people die from the flu each year. Is that a risk you’re willing to take?

The truth is you can’t get the flu from the shot, although a few people will get flu-like symptoms for about a day. And you can still get the flu even if you’ve had the shot, although it’s usually not as bad as if you didn’t get the vaccine. Dealing with those issues is still better than the 5-14 days it could take you to recover from the full-fledged flu.

Getting the shot only takes a minute and you can get one at clinics, hospitals, pharmacies and public health offices. Visit Flu.gov to learn more about flu shots and where to get them.

This year, with the onset of the H1N1 (swine flu) virus, you’ll need to get two different shots to protect yourself.

Please save yourself some money and keep yourself healthy. Get your flu shots.

We all thank you for it!

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Free Eye Exams for Children Under 1

Christina Brown — Sun, 23 Aug 2009 13:52:00 +0000

I’m a big believer that knowledge is power and preventative medicine can save you much money, time and heartache.

It’s never too early to make sure your children are in good health, including their eyesight.

Engineer a Debt Free Life has all of the details about a great program that provides free eye exams to children under one year of age. If you have any doubts about your child’s eyesight, please read her post.

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Don’t Forget to Claim All of Your 2008 FSA

Christina Brown — Tue, 20 Jan 2009 15:24:00 +0000

I almost messed up. I almost forgot to submit my last few receipts for my 2008 flexible spending account.

Fortunately, I have until the end of February to get them in, so I won’t lose the $71 I had remaining in the account.

Let this post be a reminder to you to keep on top of your health expenses!

If you had a flexible spending account in 2008, double check to make sure you don’t have any claims to make. Most plans will let you make a claim for the past year at least until the end of January; some plans will let you claim until the end of March, so check the dates, too.

If you have started a new flexible spending account for 2009, be sure to file your claims in a timely manner. One way I do that is to submit my claims as soon as I have paid the qualifying medical bills. If you wait to do it, it is easy to forget, and you don’t want to lose your own money!

This year my plan is supposed to be offering a debit card to use for prescriptions and doctor’s bills. It will definitely make it easier for me to spend the money in our FSA account, but it is still important to keep track of all of your receipts in case you are ever audited. So I’ll be keeping a specially marked file folder in my file cabinet just for those receipts.

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Save Money with an FSA

Christina Brown — Tue, 28 Oct 2008 12:42:00 +0000

It’s coming up on on open enrollment time at my husband’s work. This is the time of year where we get to make decisions on our health care, dental, life insurance, and more.

Last year was the first time I ever gave much thought to the choices we were making. It’s also the first year that we opted to set up a medical flexible spending account (FSA).

If you don’t know how an FSA works, it’s simple: You can set aside a portion of your earnings pre-tax to use for certain health care expenses such as clinic co-pays, prescriptions, and deductibles. You can also set up an FSA for day care expenses, but since I’m a stay-at-home mom, we don’t need that.

So the big perk is that you won’t have quite as big of a tax-bill. It also forces you to save for health care expenses, which is something most of us neglect to do. The downside is that if you set aside $1,000 in an FSA, you must spend it all by the end of the year or you’ll lose that money. You also have to remember to fill out the paperwork and send it in, which is a challenge for me sometimes.

Because I was afraid we wouldn’t spend all of our FSA in a year (silly me… I forgot I had three children!), we only set aside $500 in our FSA last year. While it helped a little, it didn’t even cover our deductibles for the year. Based on our visits to the doctor and prescription medicine needs, we will be raising our FSA to $1000. This should cover our family deductible, with a little left for co-pays and prescriptions.

I’ve been doing quite a bit of thinking about our FSA this year… spurred on by Kacie’s thoughts at Sense to Save and this article from the Star Tribune by Kara McGuire.

I am certain we will use all of the money this year because the reimbursement procedure is changing. Rather than having to submit receipts and forms, we will be able to use a debit card that will take the money right out of our FSA! It will be much easier to keep track of our health care spending, too.

Of course, we’ll continue to practice other health care saving measures and getting our flu shots. And maybe.. just maybe, we’ll start exercising!

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Check Your Health Insurance for Discounts

Christina Brown — Wed, 23 Apr 2008 11:40:00 +0000

Many health insurance companies are now putting a greater emphasis on maintaining good health and preventative medicine rather than treatment of chronic issues.

In order to encourage people to lead a healthier lifestyle, these companies often offer discounts or incentive programs.

For example, my Blue Cross Blue Shield plan (in Minnesota) offers monthly $20 discounts on gym memberships if you log 12 or more workouts during the month. It also offers a $10 discount on enrollment in Weight Watchers Online. There are other discounts available for services like massage therapy and nutrition supplements.

I’ve also taken advantage of my insurance’s Healthy Start Program for women who are pregnant. Once a month, a Healthy Start registered OB nurse calls you and chats with you about how your pregnancy is going and answers questions you may have. The nurse is also available to call to ask questions at any time throughout the month. After the birth of your child, you’ll get sent a $50 gift card to major retailers like Target or Amazon. I loved this program! With both pregnancies I was lucky to get the same nurse, and she was really friendly and knowledgeable. It was well worth signing up for!

My friend Michelle told me that her Medica plan allows her to earn $25 per quarter for doing things that benefit her health like preventative care appointments, completing a 6-week seminars on topics such as losing weight, exercising, and reducing stress. She also earns 1 point for every 100 minutes she walks with a maximum of 10 points per quarter. At the end of the quarter, she can trade 25 wellness credits for a $25 gift certificate. By the end of the year, she could earn $75 from her health insurance company by doing things that are good for her.

Check out your health insurer’s website. You may be pleasantly surprised at the discounts and information you find there.

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Dealing with Pressing Issues

Christina Brown — Fri, 11 Apr 2008 11:42:00 +0000

I recently read an article in Quick & Simple magazine touting the benefits of acupressure on common aches and pains.

The idea is that you can use the pressure from your fingertips to relieve common ailments without having to use any medication.

I must admit, I am a skeptic when it comes to these kinds of things. But after using the last of my sinus medication, I decided it couldn’t hurt to try the magazine’s tips for relieving sinus headaches.

It worked! It felt awful while I was putting pressure on those spots, but as soon as I lifted my fingers, I could feel my sinuses draining and my headache felt better.

Obviously, for persistent aches and pains and other ailments, you should talk to your doctor. But for a quick, cheap fix for the common stuff, acupressure wasn’t a bad option.

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