As the health insurance industry has evolved there have been many additions to health insurance companies product offerings. From wellness programs to different levels of coverage one of the most popular features added to health insurance policies has been a flexible spending account.
What Is A Flexible Spending Account?
An extremely popular product offering from health insurance providers, a flexible spending account is money available for individuals to spend on health related items. Money is deposited into an account and is not taxed. This money can be spent on things such as medicine, prescriptions or even band aids! Getting the money pre-tax is a great option and can save you quite a bit of money in the long run.
Why would A Flexible Spending Account Help?
Each year there is a very good chance that you or someone in your family is going to get sick. You’ll probably have to buy Nyquil, Tylenol or even something as simple as cough drops. On average families spend upwards of $500 a year on medicine regarded to colds and flu. If you are going to spend this money why not spend it before taxes. This could end up saving you quite a bit of money.
Many flexible spending account options only are available with some of the higher tiered products health insurance companies offer. Don’t expect this option for the extremely low cost plan as it is most likely available in the more expensive plans. But the extra coverage and money to spend pre-tax does provide you cost savings in the long run.
Is it worth it?
Depending on how often you get sick and how often you end up spending money on standard health products should help you make the decision if it is worth it or not. As mentioned above, having this money put aside for you before taxes is a great benefit and should be taken advantage is possible.