With ObamaCare Coming, the Time to Get LASIK is NOW!
photo from: http://moneypennydd.wordpress.com/2009/07/22/obamacare-increases-health-care-costs/
Much about ObamaCare has been written . One of its negative consequences will be a reduction in the amount of money one can set aside for their Flexible Spending Account (FSA). The most common variation of the FSA is the Health Spending Account (HSA). According to Wikipedia:
A health savings account (HSA), is a tax-advantaged medical savings account available to taxpayers who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), funds roll over and accumulate year to year if not spent. HSAs are owned by the individual, which differentiates them from the company-owned Health Reimbursement Arrangement (HRA) that is an alternate tax-deductible source of funds paired with HDHPs. HSA funds may currently be used to pay for qualified medical expenses at any time without federal tax liability or penalty.
The New York Times reported on this last week. The most important points of this article point out:
- THANKS to the sweeping new health law, your flexible spending plan is about to become a bit less flexible. Flexible spending accounts have long been a valuable tool for budget-wise consumers. They let you use pretax dollars to pay for eligible out-of-pocket health care expenses. You agree to set aside a certain amount each year, usually through paycheck deductions, based on what you expect your health care needs to be. By using pretax dollars, you can reduce your overall cost for these items by about 20 percent.
- An attraction had been the extremely generous list of eligible
expenses — including deductibles and co-pays, eyeglasses and dental work, over-the-counter
cold medicine, sunscreen and vitamins. But under the new law, starting
Jan. 1, flex-spend users will no longer be able to submit claims for
over- the-counter medicines unless they have been specifically directed
to use them by a doctor.
Another big flex-spend change ahead: starting in 2013 the annual limit
that any employee may contribute to these plans will be restricted to
$2,500. Many companies had allowed much more.
- LOOK AHEAD. There are still about two-and-a-half years before the lower flex-spend maximum takes effect. If you know a big elective medical or dental procedure is in the offing — like Lasik surgery, braces or long-needed tooth implants or caps — you may want to schedule these treatments while you can still pay for a big chunk of the out-of-pocket expenses with pretax dollars.
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