Top Stories

Changes to flexible spending and health savings accounts that could save you money

It’s open enrollment time for a lot of people. While you’re probably choosing your healthcare benefits for next year, don’t forget about the ones from this year.

There were some changes because of COVID-19 which could save you some money.

If you have a flexible spending account or health savings account, you might be able to save some money.

Flexible Spending Accounts and Health Savings Accounts

You can still spend the money on the usual medical expenses, like doctor visits and prescriptions.

You can also use it for over-the-counter medicine.

“Daily items such as pain relievers, your Tylenol, your Advil, you’re able to buy acid relievers. You’re able to buy flu and cold and cough medications,” said Millie Aponte of the Employers Association.

Aponte helps businesses with human resource and employee relations.

“Obviously, you can pay for out-of-pocket expenses that are related to your medical, your dental, your vision,” she said. “Your prescription copays and expenses, but you also have your acupuncture. You have your massages, if they’re part of medical treatment. Drug addiction treatments, counseling.”

Health Savings Account

People with high-deductible plans can set aside pre-tax dollars for medical expenses.

You can now contribute a little more to yours.

This year, it went from $3,550 for an individual and $7,100 for a family to $3,600 and $7,200.

You can also use that money to pay for virtual doctor visits before you’ve met your deductible.

Carrying Over FSA and HSA Money

If you have an HSA, you can carry over all of it.

For FSAs, that depends on your employer. If your workplace allows you to carry over the money, that amount went from $500 to $550 this year.