If you currently utilize an FSA (Flexible Spending Account), 2022 can be a life-changing year for your eyesight. That’s because recent legislation has given FSA holders more flexibility about what they can use the tax-free money for, and now you can carry over your funds until the end of 2022. The extended deadline to use these funds will make laser corrective surgeries and other related procedures like PRK more accessible and affordable. Here’s what you need to know as you consider using your FSA to undergo this transformative vision procedure:
What is a Flexible Spending Account?
Sometimes a Flexible Spending Account is also known as a flexible spending arrangement, and is a special account set up through your employer’s health plan. You can accumulate funds by allocating certain amounts from your paychecks to be put into your FSA, and some employers choose to make additional contributions to your account (this is not required of employers). The benefit of using a flexible spending arrangement is that the money you allocate is not taxed. Utilizing this account for over-the-counter healthcare expenses and medical bills will save the amount equal to the taxes you would have paid on the money you’ve set aside. The money can only be used for approved purchases, such as:
- You can use FSA funds to cover deductibles and co-payments, but it may not be used for regular insurance premiums.
- The funds can also be used on prescription medications, over-the-counter medications with written permission from your physician, and reimbursements for insulin.
- These FSA funds can also be used to cover the costs of medical supplies like crutches, bandages, and blood sugar testing kits (Source).
Why does this matter for 2022?
Each year, you are allowed to contribute and use a certain amount of your paychecks into your FSA. This usually is a maximum of $2,850, and you typically have to use it before a certain deadline. Some employers give you an additional few months to use up any remaining funds, but this year regulations changed to let funds roll over until the end of 2023. The regulations were changed due to the effects of the pandemic. For those who are contributing the maximum amount, this means you could use two years’ worth of FSA money at once, which would cover a corrective procedure like LASIK or PRK. Depending on the provider, these procedures average between $4,200 and $5000, so you could be paying for this surgery without taxes. That’s a significant savings, especially if you’ve been concerned about the financial aspect. Lasik is already an approved FSA expense, but you’ve never been allowed to combine your maximum yearly contribution before.
How do I use my benefits?
To book a corrective procedure, you’ll want to start with our personalized consultation. Our expert team will welcome you via Zoom to get to know you and your eye care goals. You’ll receive information about the procedure you are interested in, as well as alternatives that may be a better fit. You’ll also be able to see and anticipate the cost of the procedure that is best for you, and understand what to expect before, during, and after the surgery. Once our eye doctor determines your eligibility and eye care goals, we will help make a concrete plan that works for you.
To utilize your FSA benefits for your chosen procedure, you’ll need to either use a debit/credit card that is issued to you by your health insurance provider or pay for it upfront with your own money and submit your bill for reimbursement from your FSA provider. Be sure to check with your insurance provider if you choose the reimbursement option, so that you can be clear about what is covered. Our billing team can also help you review your insurance information and understand anything you may need to know about the process. Remember that you cannot move FSA funds into a traditional bank account or withdraw them in cash, because the money may only be allocated to approved healthcare purchases.
What does the universal fee cover?
To simplify our patients’ experience, we use a universal fee model at Medical Eye Center. This means you pay one fee, and it includes the following (Source):
- Pre-procedure consultation
- Wavefront-optimized or Topography-Guided Contoura vision correction
- Pre-surgical testing and evaluation
- Computerized corneal mapping
- Procedure fee
- Surgery Center facility fee
- Post-procedure care for one year
- Enhancement Program
If you’ve been putting off scheduling LASIK and you have been contributing to your FSA, this is the perfect time to consider taking this crucial step towards your eye care goals. Our LASIK patients find that making a long-term investment into their vision and lifestyle leaves them feeling confident and enhances their quality of life.
Sources:
https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/
English