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10 FSA eligible staff favorites for the March 15 Grace Period deadline

Virus prep and your FSA: How to get a head start on 2021

Thermometers 101: What's the best choice for my family?

Oximeters: Why they are a necessary part of your virus preparedness plan

Generic over-the-counter medicine vs. brand names. What's the best choice?

10 FSA eligible additions to your home's first aid kit

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What is an FSA “run-out” period? What you need to know for 2021

Real Money: Is dental insurance worth the cost?

Asked and Answered: What happens to lost FSA money?

Podcast-Eligible: The 2019 FSA Deadline Countdown

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The 3 most important things to know about 2021 FSA changes

What do 2021 FSA changes mean? A Q&A with our VP of Compliance, Rachel Rouleau

How to budget and plan around your FSA rollover

On the Hill: Examining the future of FSA and HSA reform

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Asked and Answered: Any last-minute tips for FSA owners before tax day?

Tips for tracking your 2018 healthcare spending

Why FSAs are money-savers for 20-somethings

5 ways to boost your wealth in your 30s

How a flexible spending account can affect your tax return

Is your FSA tax prep complete?

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6 ways to treat acne with your FSA

FSAs and skin care: What's covered and what's not by your benefits

5 FSA eligible ways to boost cardiac health during American Heart Month

10 kid-friendly FSA eligible products your little ones will love

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Living Well
Zina Kumok
Feb. 22, 2021 09:32PM EST

6 ways to treat acne with your FSA

Acne treatment can get expensive.

Those creams, cleansers and gels are expensive enough on their own, and you usually have to experiment with multiple products before finding one that actually works. If you're really unlucky, you'll have to see a professional for more advanced treatment.

Thankfully, many of the most popular and effective acne treatments can be purchased with your FSA funds. Here are some of the best options.

Use a Spot Treatment

A spot treatment is a cream or gel applied directly to the pimple, designed to reduce the blemish quickly. Spot treatments are FSA-eligible.

Most people prefer to use a spot treatment while they sleep, because it can leave a small white residue on your face. In the morning, use your cleanser as normal and wash away the spot treatment. Follow the directions listed on the package.

Acne spot treatments have different active ingredients. The most common are salicylic acid and benzoyl peroxide. You may have to experiment to see which product reduces your breakouts most effectively. Different people respond to different treatments, so you may have to try both.

The Clean & Clear Persa-Gel 10 Acne Medication With Benzoyl Peroxide has a 10% benzoyl peroxide concentration and is a popular option for acne sufferers.

If your acne responds better to salicylic acid, you can use the Clearasil Rapid Rescue Acne Spot Treatment Gel or the Clean & Clear Advantage Acne Spot Treatment. Both of these have a 2% concentration of salicylic acid.

Give each treatment at least a few weeks before deciding if it works. Never layer multiple spot treatments on top of each other, as it can cause serious irritation and damage to your skin.

Use a Pimple Patch to Treat Active Breakouts

Having a pimple is bad enough. Having a pimple in public? That can be downright humiliating.

If you're having an active breakout, you may be tempted to use makeup to conceal the zit. But that will only clog your pores and prolong the outbreak.

Acne patches, like the Mighty Patch Original, are clear, adhere to your pimple and are FSA-eligible. They may be slightly visible in public, but less so than most spot treatments.

Here's how they work. First, wash and dry your face and place a patch on each individual pimple. The ingredients in the patch will work to absorb the liquid in the pimple, ultimately shrinking it. Keep the patch on for at least six hours. After that time has passed, you can remove the patch, wash your face and put another on.

These patches are usually less irritating than a standard acne spot treatment and can sometimes work faster. They're available in different sizes, depending on the size of your individual pimples. Many people choose to wear these at night, as the patches are adhesive enough to stick to your face while sleeping.

Visit a Dermatologist

If you've already tried different over-the-counter remedies with no success, it may be time to visit a dermatologist. A dermatologist can prescribe you stronger topical and oral medications that may be able to clear up your acne.

This visit will be covered by your FSA, along with any medication the dermatologist prescribes.

A dermatologist can also diagnose other skin conditions that could be contributing to your acne. For example, fungal acne requires a different course of treatment than regular acne, and only a dermatologist will be able to determine which type you have.

You may need to visit a dermatologist multiple times to make sure the prescription is working. You can get a referral from your primary care doctor or through your health insurance network.

How to Treat Body Acne

If you suffer from acne on your body, you need a different approach. The skin on your body is thicker than the skin on your face, so you can use stronger products without irritation.

After you shower, use the FSA-eligible Glytone Acne Treatment Spray on your body acne. Let the spray dry before putting on clothes, which should only take a minute or so. If you prefer using pads instead of a spray, you can use the Neutrogena Rapid Clear Treatment Pads on any body part experiencing acne. Both of these products have a 2% salicylic acid concentration.

You should also keep using a moisturizer on your body to prevent oil overproduction, which can lead to more breakouts. Start by using these treatments every other day to avoid drying out your skin.

Instead of using regular soap or body wash, you can use an acne-fighting body wash, like the Neutrogena Body Clear Body Scrub.

Keep Using Sunscreen

Both prescription and over-the-counter acne products can make your skin more sensitive to the sun, so it's still important to use sunscreen. Use a broad spectrum sunscreen with an SPF 30 or more, like the Supergoop! Unseen Sunscreen. This is especially crucial if you're getting a lot of sunlight.

Make sure to use a facial sunscreen, which is designed not to clog your pores.

Phototherapy Treatments

Phototherapy is the concept of using targeted light rays to kill the bacteria that causes acne. Phototherapy for acne performed at a dermatologist's office is FSA-eligible. You may need several treatments depending on the severity.

You can also purchase an at-home machine if you want to save money. The dpl IIa Professional Acne Treatment Light Therapy is FSA-eligible.

Keep it Simple

A common misconception is that you should attack acne hard, but a gentle approach is usually better. Start by using a gentle cleanser once or twice a day. Use a cream or moisturizing cleanser instead of an acne-fighting one. You should wash your face before you go to bed to remove the grime and dirt on your face.

If you have a lot of breakouts, you may think that adding a moisturizer will only make your skin greasier. But the reverse is often true.

Once you start moisturizing your skin regularly, it will respond by producing less oil. This will usually result in fewer breakouts.

What Isn't Covered by your FSA

There are many skincare services that are not FSA-eligible, even if you feel like they improve your acne. Facials, chemical peels, laser resurfacing for acne scars and microdermabrasion are not covered by your FSA, even if you have them done at your dermatologist's office. A good rule of thumb to keep in mind is that if a service is primarily for cosmetic purposes, it probably won't be covered by your FSA.

Only acne-specific products are FSA-eligible. Regular face wash, moisturizer and toner also won't qualify, even if your dermatologist recommends them.

For more information on how to maximize your FSA, visit our online learning center.

Thanks for visiting the FSA Learning Center! To stay on top of all FSA news that can affect your health and financial wellness, be sure to follow us on Facebook and Twitter.

Zina Kumok

Zina Kumok is a freelance writer specializing in personal finance. A Certified Financial Health Counselor and Student Loan Counselor, she also works as a money coach helping people one-on-one at Conscious Coins. She has been featured in Lifehacker, DailyWorth and Time. She paid off $28,000 worth of student loans in three years.

Living Well
Zina Kumok
Feb. 22, 2021 09:27PM EST

FSAs and skin care: What's covered and what's not by your benefits

Skin ailments can be some of the most frustrating conditions to deal with. The embarrassing nature of a blemish, rash or bump can make it awkward to seek treatment, and many dermatological conditions have overlapping symptoms that make them difficult to deal with yourself.

To make matters worse, skin care products can get really, really expensive.

Your FSA can help with that - depending on the type of product you need. Here's a basic list of what skin care products are covered by your FSA, and what you'll need to pay for yourself.

What's Covered

Patients may be surprised to find that many popular skin care treatments and remedies are FSA-eligible. When you buy these items with your FSA card, keep the receipt to prove you spent the funds on qualifying items.

Dermatology visits

Seeing a dermatologist for a skin condition is FSA-eligible. You can use your FSA to pay what your insurance doesn't cover. Annual skin exams to check for skin cancer are also FSA-eligible.

You can also use your FSA to see a nurse or physician's assistant working in a dermatology office.

Acne treatments

You can use an FSA to pay for both over-the-counter and prescription acne treatments. These include acne-targeted facial cleansers, spot treatments, pads, pimple patches, body washes, sprays, gels and more.

Dermatologist visits to discuss your acne concerns are also covered. If they prescribe a product, you can pay for that prescription with your FSA.

Treatments for other skin conditions

If you suffer from eczema, psoriasis, rosacea or another type of skin condition, many over-the-counter topical treatments qualify for FSA reimbursement.

The brands Eucerin and Aveeno have dedicated product lines for these diseases, including creams, bath treatments, balms and ointments.

Wart removal

Having warts on your face or body can be a painful experience. Wart removal by a dermatologist is covered by your FSA. You can also use an over-the-counter topical wart freeze cream.

Sunscreen

f Sunscreens that are SPF 15 and above and provide broad spectrum protection are FSA-eligible, including lotions, sprays, powders and baby sunscreen formulas. Travel sizes of sunscreen also qualify.

Using sunscreen regularly may prevent skin cancer and decrease the effects of aging. Dermatologists generally recommend using a broad-spectrum sunscreen, meaning it covers both UVA and UVB rays.

You should also use a sunscreen with an SPF 30 or higher. Use sunscreen any time you're going outside, even during the winter or on a cloudy day.

Retinoids

Prescription retinoids may be used to treat acne and prevent wrinkles, and are also FSA-eligible. Only prescription retinol products are FSA-eligible, not over-the-counter items.

Lip balm

Broad-spectrum, SPF 15+ lip balms are FSA-eligible, like the Sun Bum Lip Balm. These types of products are eligible because their primary purpose is to protect your lips from sun damage. Tinted lip balms that are SPF 15+ and broad spectrum may also be FSA-eligible. Try the Coola From Beach To Boardroom Tinted Mineral Liplux Trio, which includes three different shades.

You can also pay for medicated lip balms with your FSA if you have a prescription from your doctor. These can be useful in dry or cold climates.

Aloe vera

Aloe vera creams and gels are commonly used after a sunburn, but can only be purchased with your FSA if you have a Letter of Medical Necessity (LMN) from a healthcare professional. However, aloe vera creams that contain supplemental medical ingredients may be FSA-eligible without an LMN, like the Solarcaine Aloe Extra Burn Relief Gel.

Medicated face cream

Medicated face creams used to treat skin conditions like eczema, rosacea, acne or psoriasis are FSA-eligible with an LMN. The LMN can be from any doctor, not just your dermatologist.

Humidifiers

Those with dry skin may also suffer from dry nasal passages, which can be remedied with a humidifier. A humidifier releases moisture into the air and is especially helpful in dry climates or during the dry winter months.

These appliances are FSA-eligible if you have an LMN from a medical professional. Needing a humidifier just for dry skin may not be enough to get an LMN, but you can call your doctor to find out.

Scar treatment

If you have a scar as a result of an illness or injury, or that makes it harder to move or causes severe pain, you can undergo scar treatment to improve your symptoms. This may be FSA-eligible if you have an LMN. In these cases it is always best to check with your benefits administrator.

Skin tag removal

Having a dermatologist or other doctor remove a skin tag may be covered by your FSA if you have an LMN. This treatment must be related to treating or alleviating a medical condition in order to be considered eligible. Again, it's best to check with your benefits administrator.

What's Not Covered

Skin care products and services that are primarily for cosmetic reasons are not FSA-eligible. Here are the most common examples:

Skincare services

Skin care services focused on improving your skin's appearance are not FSA-eligible. These include facials, microdermabrasion, laser resurfacing, chemical peels and any type of cosmetic surgery. These aren't covered even if they're performed by a dermatologist.

Botox, fillers and CoolSculpting also do not qualify. The only exception is if you're getting Botox to relieve migraines or excessive sweating.

Basic skincare supplies

Cleansers, face creams, moisturizers, toners, makeup removers, serums and eye creams are not FSA-eligible. Face rollers, skin care masks and facial brushes also do not qualify. Even if your dermatologist recommends a specific skincare product, it won't be eligible unless it is for the treatment or alleviation of a medical condition.

Vitamins and supplements

Biotin is a popular supplement people take to improve their skin, hair and nails. Unfortunately, it is not FSA-eligible. Even if you suffer from brittle nails, you can't use your FSA to pay for Biotin.

All vitamins and dietary supplements are currently ineligible with an FSA, with the exception of prenatal vitamins and glucosamine products.

To find more suggestions on how to spend your FSA, visit our online learning center.

Thanks for visiting the FSA Learning Center! To stay on top of all FSA news that can affect your health and financial wellness, be sure to follow us on Facebook and Twitter.

Zina Kumok

Zina Kumok is a freelance writer specializing in personal finance. A Certified Financial Health Counselor and Student Loan Counselor, she also works as a money coach helping people one-on-one at Conscious Coins. She has been featured in Lifehacker, DailyWorth and Time. She paid off $28,000 worth of student loans in three years.
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FSAstore.com
Feb. 22, 2021 07:56PM EST

The 3 most important things to know about 2021 FSA changes

You may have heard about some major FSA changes that passed through Congress in late 2020 as part of the Consolidated Appropriations Act 2021 (CAA 2021). No more deadlines right? Not exactly. The fact is, some of these changes will apply to some FSA users, while others will not. Knowing what those changes are and what actions you should take will help better prepare you for your 2021 FSA plan.

Here's the most important thing to keep in mind: every one of these potential FSA changes needs to be enacted by your employer first in order for you to take advantage of them.

The best thing you can do now is to keep track of your plan deadlines and any changes which may impact you. Let's explore what could be changing for you as 2021 gets underway:

1. You may have expanded FSA Rollovers

The new FSA legislation gives employers the option of waiving your FSA deadline for 2021. They will have the option of allowing you to roll over ALL of your unspent FSA dollars into the next plan year. So you can still contribute the full amount for 2022 ($2,750) and have your remaining 2021 FSA funds left to spend.

2. You may have an expanded FSA Grace Period

If you have the FSA Grace Period extension built into your plan, and your plan year ends on December 31, you probably have a deadline coming up on March 15. But thanks to CAA 2021, employers can expand this grace period up to 12 months from your deadline. So your employer could give you a few extra months to spend your 2020 FSA dollars, or even more time for added flexibility.

3. You may be able to make expanded FSA mid-year changes

As a response to the COVID-19 public health crisis in 2020, the IRS made the unprecedented decision to open up mid-year FSA changes to employers who allowed them. That applies again for 2021, as employers can allow mid-year changes to FSAs to give participants the chance to enroll/disenroll and add/withdraw funds to their FSAs.

What should I do now?

First and foremost, let's reiterate the most important part of this article: every one of these potential FSA changes needs to be enacted by your employer first in order for you to take advantage of them.

As the 2021 FSA plan year kicks off, be proactive and stay on top of all communications from your HR department or benefits provider. They will have the most updated information on which/if any of these changes your employer is implementing for 2021 and beyond so you know exactly what's coming and can plan accordingly.

FSAs have seen a series of welcome changes over the past year, from the expansion of eligibility of menstrual care products and over-the-counter medicines to increased employer flexibility to allow employees to take full advantage of these accounts. Thankfully after a rough 2020, we can say with confidence that FSA users are better positioned than ever to save money on healthcare expenses and make the right choices for their long-term health and wellness.


Thanks for visiting the FSA Learning Center! To stay on top of all FSA news that can affect your health and financial wellness, be sure to follow us on Facebook and Twitter.
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FSAstore.com
Jan. 07, 2021 08:59PM EST

What do 2021 FSA changes mean? A Q&A with our VP of Compliance, Rachel Rouleau

2020 was a year of change for flexible spending accounts (FSAs). Through the CARES Act, two new product categories were opened to consumer spending account eligibility, menstrual care products and over-the-counter medications. Meanwhile, the IRS made the unprecedented decision to allow mid-year FSA changes in 2020 in light of the public health crisis.

With the signing of the Consolidated Appropriations Act 2021 on December 27, 2020, a series of additional temporary FSA changes were enacted that could potentially change how FSA users manage their accounts in the near future. But the key trendline that goes through all of them is that they are left up to the employer to implement. So while some FSA users may experience no changes in their deadlines, some may see major alterations in the coming months.

To help us make sense of all these new regulations, we've enlisted the help of our VP of Compliance, Rachel Rouleau, to guide us through the biggest provisions of this legislation.

Q: Thanks so much for joining us Rachel! We'll go through each of these major provisions here for our audience, but the biggest change seems to affect FSA Carryovers:

"A permissible carryover of up to all unused FSA funds, if allowed by the employer, for 2020 to 2021 and for 2021 to 2022 plan years." What does that mean?

Rachel: Every FSA works on a plan-year basis, with many unspent funds left at the end of each plan year being forfeited to the "use-it-or-lose-it" rule. Employers do have the option of providing employees with one of two (or neither) options to extend the FSA deadline: an up to $550 carryover or a 2.5 month grace period. The carryover allows account holders to carry up to $550 of their remaining dollars into the next FSA plan year. The grace period gives FSA holders up to 2.5 months after their plan year deadline to spend their remaining funds.

The newest change to come from this legislation would allow FSA users to carry over all of their unused dollars into next year's plan-year contribution, rather than the $550 previously allowed. This is available only if their employer allows it. This applies to the 2020 and 2021 plan years only and would require employers to make an amendment to their FSA plans.

Q: This new law also potentially affects the other type of FSA deadline extension: the 2.5 month grace period. What potential changes are coming here?

Rachel: Right! So, the second big, temporary change affects the FSA grace period. For many people who have FSA plan years that end on 12/31 of each year, the FSA grace period gives them until March 15 to spend their remaining FSA dollars. However, this new legislation gives employers the option to extend this grace period for up to 12 months (in the above example from March 15 to December 31). It's important to note that this temporary change is only for plan years ending in 2020 or 2021, after which the grace period will revert back to being limited to up to 2.5 months.

Q: Another change to come from the Consolidated Appropriations Act 2021 refers to employers choosing to temporarily extend use of the FSA for terminated employees through the end of the 2020 and 2021 plan year? What does that mean for FSA users who may experience job loss?

Rachel: Traditionally, when an employee goes through a job transition, he or she would only have access to remaining FSA dollars if they are eligible for, and elect, COBRA continuation coverage.

In an uncertain economic environment, this is a major change that could provide relief for those who are experiencing job loss due to layoffs and budget cuts. As with the other changes, these changes are also temporary, applying only to FSA plan years ending in 2020 and 2021, and up to the discretion of the employer to offer.

Q: The IRS opened up mid-year FSA changes in 2020 to allow FSA users to add/withdraw funds, enroll in an FSA or disenroll. Will the Consolidated Appropriations Act 2021 allow for this same practice in 2021?

Rachel: Yes! Employers can allow FSA users to make a one-time change to their contributions for the FSA plan year ending in 2021, as long as employers make applicable plan amendments before the end of the 2021 plan year. While this is similar to the FSA mid-year changes allowed by the IRS in 2020, that guidance came in the middle of the plan year and only about 30 percent of U.S. employers opted to make these changes (Mercer). We may or may not see more employers allowing for these changes in 2021 now that they have extra time, but it does require employers to amend their FSA plans to do so.

Q: So it sounds like these changes could affect millions of FSA users, while others may not see any changes in their plan or plan year structure. What should FSA users keep in mind as we navigate these changes in 2021?

Rachel: I think the most important thing to keep in mind is something employees should always be aware of, but perhaps with these changes even more so: FSA plans are offered and owned by an employer, and there are a lot of variations in plan options. The best thing an FSA participant can do for themselves in terms of their FSA success is to learn their plan options, guidelines and deadline availability. Oftentimes this information is available to employees through their Summary Plan Description, a document made available by an FSA plan administrator or HR department. FSA holders who take the time to understand what their FSA benefit is, how it can be used and when it will expire will be best prepared to make the most of this important benefit year-round.

Q: Thanks, Rachel! The story of FSAs in 2021 is still unfolding and it will be interesting to see how many employers embrace these changes and how FSA users will navigate them to benefit their finances and long-term health.

Rachel: And there's still a lot of work to be done! Health-E Commerce previously created a petition to drive support for much-needed eligibility of PPE under IRS rules, and we also launched an advocacy site called TaxFreeBetter.com. This site will help push for continued expansion of FSAs and HSAs in areas such as broadened eligibility for health products and services like vitamin supplements, insect repellent, fitness equipment and more. We encourage FSA users to get involved and make their voices heard so more pro-FSA changes can become a reality.

Thanks for visiting the FSA Learning Center! To stay on top of all FSA news that can affect your health and financial wellness, be sure to follow us on Facebook and Twitter.
Living Well
FSAstore.com
Sep. 02, 2020 02:00PM EST

Should I wear sunscreen indoors?

During the summer months, practicing proper sun care is a no-brainer. Whether you're heading to the beach or anywhere else in the great outdoors, bringing along sunscreen for you and your loved ones is always a smart choice. After all, no one enjoys sunburns (we think?) not to mention extensive sun damage to the skin can lead to imperfections, wrinkles and, in some cases, even skin cancers.

During other times of the year, and when we find ourselves away from outdoor environments, our sun care regimens may fall by the wayside. At FSAstore.com, we're big supporters of year-round sun care, and in accordance with IRS regulations, the only sun care products that are eligible for FSA/HSA spending are those that have broad spectrum protection against UVA/UVB rays and a sun protection factor (SPF) of 15 or above. So if you decide to shop for sun care with your tax-free healthcare dollars, you can rest assured that you'll be fully protected when enjoying time in the sun.

However, if you're going to go the year-round sun care route, a common question may arise: Should I wear sunscreen indoors? The short answer is: yes, but there are a number of factors that could inform your decision. Let's go through the whole issue to help you decide if indoor sun care is a smart choice for long-term wellness.

How does sun damage happen?

First and foremost, understanding how skin damage occurs from sun exposure is extremely important in understanding whether you should wear sunscreen indoors. Simply put, sunburn and skin damage is caused by excessive exposure to ultraviolet rays, which are natural energy produced by the sun. According to the Skin Cancer Foundation, ultraviolet rays are broken up into two key wavelengths:

Ultraviolet A (UVA): UVA has a longer wavelength than UVB rays and penetrates to the deeper skin layers. UVA is the most common wavelength associated with signs of aging.

Ultraviolet B (UVB): UVB rays are the shorter wavelength of the two and primarily affect the upper skin layers. As such, UVB rays are what causes sunburns after prolonged exposure to sunlight.

This is why broad-spectrum sunscreen is so important, as it blocks both of the wavelengths that cause long and short-term skin damage. But while all that makes perfect sense when you're outdoors in direct sunlight, it gets a little more complicated when it comes to indoor sun protection.

Do you need sunscreen indoors?

Sun care should be a regular part of your daily routine, but if you find yourself skipping it because you'll be spending most of your day inside and away from direct sunlight, sun damage can still happen. According to CNN Underscored, Dr. Hadley King, a New York-based dermatologist, suggests that indoor sunscreen use should be encouraged:

"UVA rays penetrate through glass, so if your room has a window, it is important to wear sunscreen even when inside," said King. "The glass typically used in car, home and office windows is designed to block most UVB rays, but it does not offer protection from all UVA rays. So even if you're indoors near a window, you are still at risk of exposure to UVA rays and possible sun damage."

So while you may not get sunburn from sitting next to a window all day, your skin is still probably absorbing a fair amount of UVA rays, which are still dangerous. But even if you managed to keep yourself in a dark room for days on end, there is still another compelling reason to wear sunscreen indoors: blue light.

Is blue light bad for my skin?

The question of whether blue light causes skin damage became a much bigger issue in 2020 during the COVID-19 public health crisis when millions of Americans transitioned to a work from home setting and dramatically increased their screen time with computers, tablets and smartphones. Blue light is a part of the visible light spectrum, but appears to us as white light when it's emitted by these devices.

According to the New York Times, there have been numerous studies on how blue light differs from UV rays. The news source reports that while UV light causes damage to skin by damaging skin cells directly, extended exposure to blue light actually has the ability to damage collagen in the skin. When blue light is exposed to skin, a chemical in the skin layer called flavin absorbs blue light. This produces unstable oxygen molecules, also known as free radicals, which have the potential to cause skin damage. But with a dearth of long-term studies on this topic, we still don't know the long-term effects of blue light on the skin.

But if you decide to err on the side of caution when spending time with blue light-emitting devices, a good rule of thumb is to opt for mineral sunscreen for protection. The New York Times reports that mineral sunscreens that contain iron oxide are your best bet. Mineral sunscreens that contain zinc oxide or titanium oxide are also safe choices that can help protect your skin against prolonged blue light exposure, but they are not as effective against blue light as those that use iron oxide as primary ingredients. Products that contain vitamin C are also helpful, as these antioxidants can enter the cells directly and are small enough to penetrate the skin layer to fight the presence of free radicals. If you can find a vitamin C/vitamin E combination, that's an even better choice to double up the fight against free radicals.

So do you need sunscreen indoors? Chances are, unless you're in a dark room without any electronic devices to speak of, you should work sunscreen into your daily routine to ensure that your skin is fully protected from harmful rays, wherever they may be coming from. Make it something as simple as a step after taking a shower or moisturizing. A little bit of effort now can help you dramatically reduce your risk of potential skin cancers and help your skin look fresh and vibrant for years to come.


Thanks for visiting the FSA Learning Center! To stay on top of all FSA news that can affect your health and financial wellness, be sure to follow us on Facebook and Twitter.
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FSAstore.com
Jul. 17, 2020 05:19PM EST

The Tax Breakdown on Feminine Hygiene Products

Let's face it, whether you're shopping at the supermarket or online, we all have our go-to health essentials. But what you may not realize is that all of the items in your cart, including period products, may not be treated equally. A 2015 study done by the New York City Department of Consumer Affairs found a 13% difference between the price women pay for personal care products compared to their male counterparts. This gender discrimination has gone on for far too long, especially when it impacts the cost of basic period products like tampons, menstrual pads, liners and other menstrual care products.

Cue the term "pink tax."

Pink tax, tampon tax, or period tax all refer to the state sales taxes on menstrual products like tampons, pads, liners, period cups and other products that are essential to menstrual and personal health. To be clear, this doesn't mean there is a special tax or added cost to these products.

Products that are exempt from sales tax are deemed basic necessities. So when state sales tax is imposed on period products, it categorizes these products as a luxury item. This luxury tax imposes a financial burden on women's health essentials. The impact becomes increasingly obvious when you look at the cost of menstrual care products over the course of a lifetime. With the average reproductive timeline occurring from ages 12-52, while spending $60 each year on menstrual care products on average, that results in over $2,400 spent over a lifetime on menstrual care. That is a hefty price to pay especially for those who experience period poverty or menstrual inequity.

Period poverty? Yes, you heard that right. According to the Vision and Voice of Women in Medicine (AMWA), "period poverty refers to the inadequate access to menstrual hygiene tools and education, including but not limited to sanitary products, washing facilities, and waste management." With 25 million women living below the poverty line in the U.S., the price paid for these essentials becomes all the more overwhelming.

As if these period products weren't already so expensive, the thing about retail tax is that it adds up. Over 30 states across the U.S. like Tennessee, Georgia, and others participate in imposing sales tax on these products. According to Tax Free Period, Texas alone has made as much as $23.9 million from menstrual care product sales each year. State lawmakers are reluctant to make exceptions regardless of how expensive these products have become, and it's likely because of how large of a revenue driver it is for some states. Unfortunately, the 'tampon tax' is here to stay for the time being. According to Statista, the feminine hygiene products market is on trend to reach $52 billion by 2023. The disadvantage in cost of menstrual health creates a divide in gender equality and has sparked a desire to reform the cost of health care products for women.

How long has this been going on?

For far too long. A 1994 study by the state of California estimated that "the pink tax on services alone costs a woman roughly $1,350 over a year, the equivalent of about $2,135 today." This began to show that this pink tax not only exists across the basic menstrual care necessities for women, but that women were paying more for other products and services too.

The fight to abolish period taxes for all states has been contested for quite some time and has garnered strong support from activist groups, lobbyists and government officials fighting state tax laws. For years, state officials have fought state laws by proposing bills to Congress against the unfair tax levied on menstrual health products and other products and services for women.

Putting the pressure on tampon tax

The tampon tax, or pink tax, doesn't apply to just drug stores and supermarkets. Feminine hygiene products weren't always eligible in the tax-free health world. When it comes to tax-free health care accounts like a flexible spending account (FSA) or health savings account (HSA) the Internal Revenue Service (IRS) ultimately holds control over which products and services fall under the definition of "medical care" (IRS Tax Code 213(d).

According to IRS Tax Code 213(d), the term 'medical care' means "amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body." One could make an argument that feminine care products could fall under these guidelines, but historically the IRS treated them as general health items, and therefore not eligible as medical care.

For years, tax-free health care users would have access to select eligible products that would aid in menstrual pain relief such as heating wraps. Though helpful for symptoms like cramping and bloating, the actual menstrual care products like tampons, pads, and liners all fell outside of eligibility. Users could use tax-free healthcare funds to treat symptoms of periods like pain, but not the essentials to help them go about their daily lives safely and comfortably. That had to change.

After much work that has been done on the federal level, menstrual care products no longer face the discrimination they once did in tax-free health care. As of March 2020, Congress has officially passed the CARES Act, providing economic relief for millions of Americans. (The full text of the bill can be found here.) This legislation includes a long-awaited and very important provision that is vital for FSA and HSA users: making menstrual care products eligible for the first time.

That means tax-free health users now have access to a wide variety of menstrual products from tampons to organic pads, panty liners, diva cups, and more that are now all guaranteed eligible expenses for reimbursement with an FSA or HSA.

Legislators and members of Congress led by Representative Jackie Speier (D-CA) would also make headway with The Pink Tax Repeal Act introduced under the 114th Congress in 2016. This makes it "illegal to charge men and women different prices for substantially similar consumer products and services at the national level."

On the state level, Senate Bill 92 was signed into law on June 27, 2019, which according to the California Department of Tax and Fee Administration, means diapers and menstrual hygiene products are exempt from sales tax and use tax effective January 1, 2020 to December 31, 2021. The bill's exemption defines menstrual hygiene products as, "tampons, sanitary napkins primarily designed and labeled for menstrual hygiene use, menstrual sponges, and menstrual cups." This is a huge win for the women of California as the state has historically made up to $33.4 million from menstrual care product sales each year.

What's next for pink tax reform?

As of June 2019, 13 states have specifically exempted essential hygiene products: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New York, Nevada, Ohio, Pennsylvania, Rhode Island, and Utah. But there's still work to be done on the other 30 plus states that impose unfair sales tax on these much-needed products, you can join the fight against pink tax. The Tampon Tax Protest is an ongoing effort to eliminate the inequitable tax against these products with organizations like Tax Free Period who have resources and tools in place to take the steps in actuating change. And guess what? Change is happening.


Thanks for visiting the FSA Learning Center! We'll keep you posted on all the FSA changes that may be coming in the foreseeable future, so be sure to to follow us on Facebook, Instagram and Twitter for the latest updates.
popular
FSAstore.com
Jun. 18, 2020 05:17PM EST

FSA Mid-Year Changes are now available: What’s my next move?

In mid-May 2020, the IRS made a revolutionary change in light of the public health crisis to open up the option for mid-year changes to FSAs and other insurance plans. In the past, the only times these mid-year changes were allowed were due to qualifying life events like marriage or the birth of a child, but with the COVID-19 pandemic resulting in a sea of changes with how consumers use their flexible spending accounts (FSAs), the option to pursue mid-year FSA changes is welcome and necessary.

Now a month removed from that big announcement, many FSA users are probably wondering: so when can I make changes to my contribution and coverage? Well here's the kicker: FSA mid-year changes are only available for account holders whose employers open them up for their employees.

With that information in mind, let's explore what employees should do next when inquiring about FSA mid-year changes

1. Talk with HR!

Your human resources department should be your first stop to inquire about any substantive changes in your company's benefits and whether there are any future plans to pursue mid-year changes for 2020. Ultimately, it's in your employer's hands to make this decision, but reminding them to weigh the pros and cons of allowing the change if they haven't done so already is the first step.

2. Talk with your FSA account administrator!

If you feel more comfortable, your FSA account administrator, whose information can typically be found on the back of your FSA card if one is available, is a great resource to talk with about your FSA related questions. They'll be able to tell you about your current plan options and any they're aware of, although they may ultimately refer you back to your HR department if your employer hasn't made a decision as of yet.

If mid-year changes are allowed…

If your employer did open up FSA mid-year changes to you and your fellow employees, you essentially have a mini open enrollment to prepare for. Here are a few things to keep in mind:

1. Should I contribute more or withdraw?

One of the unique aspects of these mid-year changes is that the IRS is allowing FSA users to either contribute more to their accounts to meet the 2020 contribution limit ($2,750) or withdraw these funds for personal use (post income taxes). We always err on the side of taking advantage of an FSA's tax benefits, but every person's financial situation is unique, so do what is best for your bottom line.

2. Should I elect a new FSA or drop my current one?

The IRS is also permitting those who had previously chosen to forego an FSA election for this year to elect one mid-year with these changes. If you have the option to add an FSA, now is a good time to explore the thousands of eligible products which will qualify and ways you may be able to save money and reduce your taxable income. And if you currently have an FSA and are considering dropping it under the changes, remember that if you can swing it, FSAs do reduce your taxable income, and there are still plenty of ways to responsibly use your FSA funds this year.

3. How can I estimate my future spending?

If you're stuck pondering your qualified healthcare spending for the rest of 2020, our FSA Calculator can help. This can help give you a full picture of your finances to plan out your future medical expenditures so you can accurately predict the right contribution for you and your dependents' needs.

It's an exciting time to be an FSA user, and you may have more flexibility with your account than you could have ever imagined! Now is the right time to start asking questions and finding out the benefits plans of your organization for the rest of 2020.



Thanks for visiting the FSA Learning Center! We'll keep you posted on all the FSA changes that may be coming in the foreseeable future, so be sure to to follow us on Facebook, Instagram and Twitter for the latest updates.

popular
FSAstore.com
May. 14, 2020 09:52PM EST

IRS opens up FSA mid-year changes due to COVID-19 crisis: What you need to know

With millions of Americans turning to their flexible spending account (FSA) dollars to cover the immediate costs of medical care and virus preparedness amidst the COVID-19 pandemic, a few very important FSA changes have emerged in recent months. The first was the CARES Act, which opened up over-the-counter (OTC) medicines and feminine care products to full FSA eligibility, while the second came this week as the IRS took a major step to open up mid-year FSA changes to account holders.

In the past, mid-year FSA changes were only allowed if the account holder experienced a qualifying life event, such as marriage, the birth of a child or a change in employment. Because of the public health crisis, this week the IRS provided two new notices that may provide additional flexibility for FSA users:

Notice 2020-29: This notice allows for mid-year changes for health plans including FSAs to allow employees to elect new health plan coverage or revoke existing coverage dating back to the beginning of the year. This means that account holders can choose to elect into or opt out of an existing FSA or increase or decrease a current FSA election. Here's the big thing to remember: this will only be available to account holders whose employers allow these mid-year changes.

It also allows for a possible extension of previously expired 2019 funds if an employer chooses. The Notice provides the option for employers to further extend FSA deadlines through the end of 2020 for 2019 plan years which had certain deadline extensions already in place.

What does this mean?

This is a big one in the history of FSAs. Account holders effectively have the opportunity to reduce their overall FSA contribution, or withdraw from their program if permitted by their employer and if they so choose. Conversely, those who aren't enrolled in an FSA and want to use this opportunity to save on expected healthcare costs, or up their contribution for 2020, have the ability to do so if their employer chooses to participate. Account holders should start by consulting their benefits administrator or HR department for more information on whether these changes will affect their accounts.

Notice 2020-33: This notice increases the maximum FSA carryover allowed from $500 to $550, if amended and allowed by the plan. Last year, President Trump signed an executive order directing the US Treasury to increase the FSA carryover amount. In response, the maximum carryover amount has been increased to $550.

What does this mean?

The $550 was indexed to inflation and represents 20% of the current total FSA allowed maximum for the year of $2,750 (the prior limit of $500 was 20% of the original FSA election limit of $2,500). When it comes to enacting these changes, employers may choose to allow up to $550 to carryover or a lesser amount if they choose. Carryovers are one of three deadline extension options which employers may or may not allow.

Once again, a good first step for account holders is to consult their benefits administrator or HR department to find out if a carryover will be available during their plan year and if so, what the maximum carryover amount will be.

What's next?

We'll keep you posted on all the FSA changes that may be coming in the foreseeable future, so be sure to to follow us on Facebook, Instagram and Twitter for the latest updates.
Basics
FSAstore.com
Oct. 17, 2019 01:00PM EST

Flex-Ed: 3 ways technology has simplified FSA management

Flexible spending accounts (FSAs) can be one of the mostly useful tools an employee can have. But historically, people have mistakenly viewed them as difficult to manage. Now, with connected technology around us at all times, FSAs are simple to manage and use, changing the way people view these accounts.

With open enrollment coming up, if you're on the fence about enrolling in an FSA because you think they're difficult to handle, check out all the ways tech has made it a breeze to stay on top of your funds.

FSA debit card

By far one of the biggest developments in the FSA world is the arrival of the FSA debit card. Traditionally, FSA expenses were paid for with the account holder's cash, check or credit card, and then these expenses were submitted for reimbursement to the FSA plan sponsor with the required documentation (receipts, invoices, etc.).

Most providers now issue FSA cards for account holders, which dramatically simplifies the claims process and makes it easier for you to pay for out-of-pocket health care costs. Just be sure to hold onto your receipts in case your administrator requires you to submit documentation.

FSA portals

Most FSA administrators offer 24/7 access to your FSA details through a dedicated FSA portal. Your FSA portal will typically allow you access to your account balance, the ability to submit and manage claims online, contact information, FAQs and much more. Before you start dialing your administrator, visit your portal (which are usually accompanied by a mobile app) to see if the answers you need are there. It's faster, easier and more efficient!

FSA educational tools

The crisis surrounding FSAs for decades was always a question of education - whether information was made available to workers and whether HR managers could answer in-depth questions related to FSA rules and regulations set forth by the IRS. That's why we launched this Learning Center -- because we know consumer education is one of the biggest stumbling blocks to FSA enrollment.

In addition to the articles on this page, we also have an entire suite of FSA tools to help you cover every angle of your account, including:

  • FSA Eligibility List: The web's most comprehensive eligibility list detailing medical products/services and their eligibility with FSAs, HSAs and other consumer-directed health care accounts.
  • FSA Calculator: We've created a way to calculate exactly how much FSA money you should set aside based on your income, marital status and state.
  • FSA Tracker: Not all FSA plan years are the same, so make sure you stay on top of your deadline. Submit your FSA deadline in our tracker for email reminders sent to you when your deadline is around the corner.

Guaranteed FSA-eligible products!

Nothing is easier for FSA users than visiting a website and knowing each and every item is guaranteed-eligible. No confusion, no comparing sites, no guesswork. Just a growing collection of 4,000+ eligible health and wellness products, able to be purchased with an FSA card or regular credit card.

Kanjō Travel Acupressure Set

A simple yet effective at-home and on-the-go solution for neck, back and foot pain.

$69.99
Buy Now

Battle Creek Migraine & Headache Deluxe Kit

Finally, a drug-free approach to headaches that can be personalized for the user.

$52.99
Buy Now

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New to FSAs? Need a refresher course in all things flex spending? Our Flex-Ed column gives you a weekly dose of FSA Living 101, offering tips for making the most of your tax-free funds. Look for it every Thursday, exclusively on the FSAstore.com Learning Center.

Eligibility
Tabitha Jean Naylor
Sep. 11, 2019 10:15AM EST

Asked and Answered: Why do FSAs cover acupuncture but not other alternative pain treatments?

When it comes to flexible spending accounts (FSAs), you've probably heard about the tax breaks and benefits (not to mention being able to pay for health emergencies when they arise). But, what most people really want to know is what the term "eligible expenses" actually means.

This is especially true if you're having issues with pain, and you want to explore therapies like acupuncture or other types of alternative pain management.

So let's take a quick look at how FSAs classify acupuncture, as well as other alternative types of treatment, like the often confused acupressure, which is often also FSA-eligible. (See the differences in this post.)

FSAs and acupuncture

Acupuncture has been used in Asia for centuries to treat pain, but it's still a pretty new type of treatment here in the U.S.

Acupuncture is an eligible expense with an FSA because it's considered an approved treatment for pain. Even the IRS lists acupuncture as a qualifying medical expense that you can deduct on your annual tax return.

While acupuncture is FSA-eligible, you still may be required to get a Letter of Medical Necessity (LMN) that describes how acupuncture would help in the management of a diagnosis, cure, treatment, mitigation or prevention of a medical condition or disease.

Are there any other FSA-eligible alternative pain treatments?

Potentially. Each situation is unique and will likely be handled on a case-by-case basis by your FSA plan administrator. Two common alternative treatments for pain include:

  • Naturopathy – non-invasive treatments that promote self-healing
  • Chiropractic – manipulation of the spine to alleviate pain and discomfort

It's at your doctor's discretion whether these alternative types of therapies would be useful in your treatment plan. If they are, and the service aids in diagnosis, cure, mitigation, treatment or prevention of disease, an LMN must be written, which may make the service eligible for reimbursement under your FSA. In short, any natural therapy could be eligible if it hits these marks.

The LMN must provide detailed information about how the alternative treatment would be used as part of your treatment plan and what the treatment would cover and how long treatment should last.

Regardless, your best option is to discuss alternative therapies with your physician to determine if there's an opportunity to integrate these treatments into your pain management plan.

Get started with acupressure

Kanjō Memory acuPressure Mat Set with Pillow

A simple yet effective at-home solution for neck and back pain.

Kanjō Memory Foam Acupressure Neck Pillow

Targets acupressure points to reduce pain throughout the neck and shoulders.


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From FSA basics to the most specific account details, in our weekly Asked and Answered column, our team gets to the bottom of your most-pressing flex spending questions. It appears every Wednesday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.

Eligibility
Sean Hanft
Aug. 21, 2019 02:50PM EST

Asked and Answered: Can I use my FSA for my child's eye care?

It's back-to-school time, and as you scramble to get your kids ready for the new academic year, there may be more to think about than just picking up school supplies.

This is because August is Children's Eye Health and Safety Month, sponsored by the American Academy of Ophthalmology (AAO). Each year, the organization aims to provides information to the public that can help protect and preserve your child's eye health.

Luckily, whether you have a standard flexible spending account (FSA) or a limited care flexible spending account (LCFSA), your benefits can cover a significant portion of vision care expenses that can help your child see clearly throughout the coming school year. Here are just a few of the AAO's suggestions of what you should cover as the calendar flips to September and school gets underway.

Vision exams

According to the American Optometric Association (AOA), an eye exam is recommended for school-aged children every two years if there is no vision correction issue present, and those who need glasses or contact lenses should visit on an annual basis.

Before your kids get back in the classroom this fall, make an appointment with your optometrist to ensure your child's eyesight is healthy - and use your FSA to offset the costs.

Eyeglasses/contact lenses

Another good plan is to make sure your kids have up-to-date glasses and contact lenses that can stand up to the rigors of childhood. Your FSA covers reading glasses, prescription eyeglasses and prescription contact lenses.

If your child's eye wear is in need of an update, your FSA can cover the fresh new look they've been looking for. Visit our Optical Store to browse our selection of leading eye care brands.

Are all types of contacts covered?

If contacts are designed to correct vision problems, they're FSA-eligible. Though insurance companies might have their own policies regarding coverage of specific types or brands of lenses, they're usually reimbursable with your tax-free funds. Plus, unlike some insurance providers, which may not cover contact lenses in place of eyeglasses, if the contacts are prescribed to correct vision they are eligible, regardless of insurance plan coverage.

Vision correction accessories

Are you running low on contact lens solution? Has your child misplaced a carrying case? In addition to vision correction methods, your FSA covers a huge slate of products that can protect and prolong the lifespan of your kids' eyeglasses and contact lenses. Contact lens solution, eyeglass repair kits, cleaning cloths and much more are eligible for FSA reimbursement.

Clear Care No Rub Cleaning & Disinfecting Solution Value Pack

Caring Mill Lens Cleaning & Repair Kit


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From FSA basics to the most specific account details, in our weekly Asked and Answered column, our team gets to the bottom of your most-pressing flex spending questions. It appears every Wednesday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.

Eligibility
Tabitha Jean Naylor
Aug. 14, 2019 10:12AM EST

Asked and Answered: Can I pay for fertility treatments with my FSA?

One of the benefits of an FSA is that you can use it for preventive treatments. But there are some health care needs that aren't easily classified as either health maintenance or preventative care, which makes it difficult to know whether they're eligible.

This "gray area" includes procedures like fertility treatments, which aren't covered under most standard insurance plans.

So the question we always hear is, "Are fertility treatments FSA-eligible?" The answer is "yes," but there are some exceptions, so it's important to understand what type of fertility treatments are covered, and what type of treatments aren't eligible under your FSA.

Fertility and FSA eligibility

Healthcare treatments eligible for FSA reimbursement must be services used to diagnose, evaluate, and/or treat injury, illness, disease or symptoms of a disease. While the inability to have a baby doesn't fit neatly into any of these categories, the IRS allows you or your qualified dependents to deduct medical expenses involving fertility in certain circumstances, including:

  • In vitro fertilization (IVF), which is a process in which doctors remove eggs from the ovary, fertilize the eggs in a lab, and place the embryos into the uterus
  • Intrauterine insemination (IUI), in which sperm is inserted into the uterus and is timed with a woman's ovulation to increase the chances of conception
  • Surgery to implant donor eggs and embryos. This also includes any procedure that reverses a prior surgery that prevents a woman from conceiving a child.
  • Fertility medications such as follicle-stimulating hormone (FSH), which help ovaries produce more eggs
  • The cost for temporary storage of eggs or sperm

FSA reimbursement for these treatments and services may require specific documentation and not all circumstances will qualify for reimbursement, so you'll want to speak with your FSA administrator to see exactly what you'll need when using your card or submitting your claim.

There are the major treatments and procedures that your FSA will cover to correct fertility issues preventing you from having a child. And there are some things you should be aware of, especially involving the tests that doctors use to determine appropriate treatments for a woman struggling to conceive.

The IRS doesn't specifically include fertility testing under the umbrella of medical procedures, but many FSAs allow you to treat fertility tests as diagnostic services similar to those used to treat other types of illnesses and diseases.

Again, it's best to check with your FSA administrator if you have any questions about whether or not a specific fertility treatment is covered under your plan.

Fertility expenses that aren't covered by your FSA

Although your FSA will reimburse you for many major types of fertility treatments and procedures, it won't cover any expenses you incur if you use a surrogate for the IVF procedure as your surrogate would not be a qualified dependent under your plan.

And any expenses related to the long-term storage (greater than one year) of eggs and sperm are not considered part of an immediate medical need to conceive, and also aren't covered under your FSA.

But if you are struggling with fertility issues, your tax-free funds let you pay for many treatments that can help you achieve your dream of having a child. Let your FSA ease your mind so you can focus on a healthy, happy pregnancy, and check out our growing lineup of family planning and fertility products, to make this journey as easy and enjoyable as it can be.

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From FSA basics to the most specific account details, in our weekly Asked and Answered column, our team gets to the bottom of your most-pressing flex spending questions. It appears every Wednesday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.

Living Well
Sarah Li Cain
Aug. 06, 2019 10:04AM EST

Real Money: Smart FSA spending for diabetes needs

No doubt that diabetes is expensive. Between appointments, getting equipment and purchasing healthier food that doesn't raise your blood sugar, it can be hard to squeeze all that out of your budget. But, paying for these necessities doesn't have to be such a burden. If you take advantage of your FSA and manage it right, you can offset costs.

Here are some smart (and eligible) ways to reduce the costs of your current diabetes routine.

Estimate how much you'll need each month

Estimating the amount you'll be spending will help to figure out how much to put into your FSA account. It'll help to lessen the chances of money being left over at the end of the year. If your employer makes contributions to your FSA and you don't use it all, that free money is sadly gone too (with some limited exceptions).

First, determine what kind of diabetes equipment you can purchase with an FSA. These can include test strips, blood glucose monitors, diabetic socks and lancets to name just a few. You can then try to estimate how much you'll need every month and set aside your pre-tax dollars that way. If you can and if applicable to your FSA, factor in exactly how much your employer contributes so you can add that in your budget.

Take advantage of discounts

You can essentially purchase FSA-eligible items or services anywhere, so why not stretch those dollars? You don't have to stick to your local area to scour for deals. Look online and you could find not only discounted prices, but also digital coupons. Some places even offer promotions for first time customers so try to take advantage of those. (We may know of one…)

Before going crazy and buying up everything in sight, check to see what the shipping costs are. While the supplies itself may be cheap, some places could charge you shipping which negates the discounts.

Upgrade equipment each year

Remember, your FSA money is technically use it or lose it. In other words, whatever you contribute can only be used in that plan year. Sure, you may have a rollover option, but you can only move up to $500 to next year's balance if you do.

If you have a chunk of money at the end of year, consider upgrading any equipment then. It's smart to want to hold out on purchasing any expensive items until necessary, but not spending FSA funds is a big waste. Of course, you can always buy supplies instead of getting new equipment.

Factor in your HSA

If you tend to spend more than $2,700 (the maximum amount you can contribute to an FSA in 2019) each year on diabetic supplies, consider taking advantage of an HSA-qualified plan at open enrollment. HSAs come with higher limits for contributions, but you are only eligible to also participate in an HSA in if you happen to have a limited-purpose FSA -- you typically can't have an FSA and HSA at the same time.

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Despite the restrictions of when you can spend your money, FSAs are a great way to save money by not paying taxes on diabetes supplies. But, buying diabetes supplies is just one example of how you can offset your expected healthcare costs with tax-free funds. If you know you're going to need health and wellness products, check our extensive Eligibility List to see if your needs are covered by your FSA.

Blood Glucose Monitor

Know your blood sugar level in seconds with simple and easy-to-use blood glucose monitors.

Diabetes Supplies

From lancets to test strips to glucose tablets, keep your blood sugar in your control with a wide range of diabetes supplies.

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Whether you budget week-to-week, or plan to use your FSA for bigger things, our weekly Real Money column will help you maximize your flex spending dollars. Look for it every Tuesday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.

Eligibility
FSAstore.com
Jul. 31, 2019 05:00AM EST

Asked and Answered: Are summer day camps FSA-eligible?

Yes, it can. Under IRS guidelines, you can send a child to a day camp as a work-related expense with a dependent care FSA (DCFSA). We don't spend a lot of time covering dependent care FSAs on these pages, but summer is always a good time to see if this type of account is right for your family. Why? Because summer day camp is an eligible expense for dependent care FSA holders!

It seems strange to be thinking about cookouts and and camp songs on a site built around health and financial wellness, but the dependent care FSA is a great way for people to set aside tax-free money toward any relevant costs -- including day care and camp. And it looks like the warm weather has the media thinking about these things, too, based on the headlined below.

How can a DCFSA help pay for day camp?

To use a dependent care FSA for reimbursement on day camp, children have to be younger than 13 years old. They must also be claimed as dependents on the federal income tax return. You are allowed to contribute $5,000 a year to a DCFSA per household, or $2,500 for married couples who file separately. The activity the camp specializes in does not matter as far as eligibility is concerned (whether it is sports-oriented, for example).

Other eligible expenses include:

  • Babysitting (work-related whether in your home or outside the home, can be done by a relative not listed as a tax dependent.)
  • Before- or after-school programs
  • Child care or sick-child care while you work
  • Nursery school, nanny fees, or preschool.
  • Expenses for a housekeeper who takes care of a child.

Non-eligible expenses:

  • Overnight camps do not quality as a work-related expenses
  • Day care for a child 13 or older
  • Summer school
  • Kindergarten or school tuition
  • Meals

The importance of day camp for children

A recent study by the RAND Corporation, a nonprofit, global policy firm, shows that voluntary summer programs like day camp have a significant, positive impact on low-income students during a time when they fall behind their wealthier peers both academically and socially. Their research also shows that children benefit from learning social and behavioral skills in different settings with new peers.

The problem comes from accessibility and cost. Many parents looking for assistance during the summer may not realize there are programs available to them to offset these expenses. There may still be time to make this happen for the 2019 summer season. But if you miss out now, this is the perfect time to start planning for summer day camp expenses for 2020.

Plan now for next year's day camp expenses

While you might not be thinking about s'mores when open enrollment starts, there are some significant savings to be had by planning ahead for the following year. But if you're planning and saving for future expenses, chances are you needed to make that decision at open enrollment the previous year.

Camp and other summer child care costs can be a big line item for working parents. Though prices vary, summer day camp programs accredited by the American Camp Association average $314 per week. Using a dependent care FSA can help parents save an average of 30% on these services, while also reducing your overall tax burden.

Sunscreen for Kids

Protect children from harmful UVA/UVB rays with kids sunscreen.

Band-Aids

Protect minor cuts and scrapes with fun Band-Aids.

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From FSA basics to the most specific account details, in our weekly Asked and Answered column, our team gets to the bottom of your most-pressing flex spending questions. It appears every Wednesday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram, YouTube and Twitter.