Sense & Centsibility Blog

Pros and Cons of Medical Flex Accounts

Let’s face it…unfortunately most of us have medical bills. If you don’t have them right now, you, your child, or your partner likely will at some point. Medical bills can be scary because when you receive the paper bill, they ask for the whole balance right away. If you can’t afford to pay the entire balance, the first thing to do is call your medical provider right away to set up payment arrangements. However, you can prepare for medical bills a different way if your insurance provider offers Flexible Spending Accounts or FSAs. An FSA is great if you have a good idea what you spend each year on medical expenses. Start by adding up your out of pocket expenses from the previous year and then that would be the amount you’d want set aside in your FSA for the year. Any amount taken out of your paycheck for your Flexible Spending Account (FSA) would be pre-tax, saving you money. Then, every time you go to the doctor or possibly even pick up a prescription, you’ll get that money from your FSA to go toward those medical appointment/prescription expenses. This is a great way to plan for medical expenses and the nice thing about FSAs is that money is available right away to pay off your medical bills. Please note: always read up on the specific details of your plan first. The following Duluth News Tribune article below explains more about FSAs, including the benefits and the potential pitfalls. Medical Flex Accounts: Use it or lose it Click HERE for even more information about to how prepare for unexpected medical expenses.