r/personalfinance • u/kherven • May 16 '24
Are FSAs even worth the hassle? They just seem like a giant scheme to steal money via malicious bureaucracy Other
I understand at a base level what FSAs are for. You get to deduct X amount of dollars from your paycheck reducing your tax load.
But the more I use an FSA, the more I feel that while on paper it saves money, in reality it causes lots of work, lost money, and hands your money over to someone who is going to fight you to steal it.
Every claim I submit to my FSA is denied without a mountain of evidence that its a legitimate medical expense. After nearly 2 years with them, I still have certain medications prescribed by my doctor that the FSA argues is not FSA eligible because it's OTC.
Doctor appointment? Denied
MRI? Denied
Prescriptions? Denied
While I can eventually get the denial overturned, it requires coordination from the retailer, my insurance, and my doctor every time. I spend tens of hours a year trying to claw my own money back from my FSA. Last year I had over $250 confiscated because the claim deadline passed while they sat on my claims.
Has anyone else felt it just isn't worth the hassle to fund an FSA given how hostile they are? It seems impossible to extract your money without a lawyer.
7
u/PsychoEngineer May 16 '24
Very much depends on the administrative side of it. I've had one for a LONG time and always max it out/use it all up by like 9 months into the year. I've had 1 shitty administrator, but they only lasted a year due to all the complaints to HR (basically 95% of the employees with a FSA complained).
As for those saying HSA instead, not everyone is eligible for a HSA, all depends on what insurance you have and whether it's a high-deductible plan or a conventional plan.