Flexible Spending Accounts

Up to this point in our life, Joe and I had never ever used these.

I would have my yearly well woman check up and Joe his every two year "man" visit which might have a co-pay but everything else was pretty much covered.  Joe and I felt there was really no point since our health care cost were minimal.

However, at election time last year in November, we both decided this was something we should look into and start using.  I took it from the stand point of 1) It will be nice to have some money saved for expenses we do not plan for and 2) The VERY VERY Small tax break it will bring us.

We decided to do this out of both of our paychecks- mine for me and Joe for him and Collin since both of them are on his insurance while I am on my own.

I sat down and figured what my estimated out of pocket health care expenses would be this year with my delivery and everything involved including breast pump rental because this is actually something I can use my Flexible Spending Account for.  This in a way was also good because it is how I learned about my insurance plan and some of the peaks like the free breast pump/pumping bags/lactation consults, etc.  I totaled all the estimated cost I had up and then divided it by 26 since there are 26 paychecks to figure out how much I needed to save- it was miminual out of each pay check. My flexible spending account is nice in the fact that all the money you designate is already in there- which means I do not have to wait to use it which is great because my only really health care expenses this year were related to childbirth/breastfeeding so I can submit everything at once and be done....

So here is what I am submitting.....

ER co-pay for when I was readmitted to the hospital-  $228

Prescription co-pay when I had mastitis-  $5

Prescription co-pay for blood pressure medication I was on for couple of weeks $5

Lanolin $6.67- yes my plan covers this as a health expense

Vitamin D Drops for Breastfeeding-  Total of $16.24

Breast Pump Rental for 5 months- $180

Joe's health spending works a little differently in the form of a credit card however you have to wait until the money is in the account to use it.  So this means we have had to spread out paying the bills- this is kind of been a pain but at the same time it is so much easier than mine in which I have to pay the bill and submit a claim to get reimbursed- with Joe's you just charge a credit card that is linked to the account.  

All and all I am totally glad we did this this year and I think we opt the right selection of cash for each of us.  Next year I do not think I will have any withdrawn for me as I will be back to my yearly exams but we will probably continue to have an account for any expenses related to Collin, especially if we keep Joe's crappy insurance which we are talking about not doing and switching him to mine even through it might be more upfront (per pay check) but less out of pocket (after paycheck) since mine has a very low deductible and most everything is covered- as evident by my delivery, ER, and ICU being covered expect for $228!!!

All and all it does not save us that much in taxes but has been more of a saftey net with me only getting paid for part time while I am on Maternity leave- it has been nice to have the money saved.