Thursday, December 30. 2010
Those with flexible savings accounts better hurry up and run to the store if funds are still available.
Effective January 1, consumers can no longer use funds from the accounts to purchase over-the-counter medications as a result of healthcare reform. The accounts can, however, be used to pay for prescription medications.
Flexible savings accounts have become quite popular with some employers and employees. The plans allow people to set aside funds tax-free, resulting in the potential for a sizable amount of savings.
There will be more changes underway for the accounts in the upcoming years. Current limits allow employees to stash away $5,000 annually in the accounts, but the amount will be slashed in half in 2013.
Obtaining affordable health insurance quotes along with using flexible spending accounts have helped people save a substantial amount on medical care.
While shortly people will no longer be able to use flexible spending account funds on over-the-counter medications, there are still ways people can save money. By 2014, each state will be required to have a health insurance exchange in operation. The program is designed to offer competitively priced policies.
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