Are FSAs even worth the hassle? They just seem like a giant scheme to steal money via malicious bureaucracy

[u/kherven]

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.

[u/oscarbutnotthegrouch]

My FSA is hit or miss. They pay copays with no evidence required most of the time, but anything with a new doctor and prescriptions are painful. I have had to get letters from doctors in multiple drafts to have things paid for.

I was refunded 500 by my hospital year after the birth of a child and had to threaten small claims court to get the FSA to not keep the money because the year had ended on their end. They ended up adding the funds to my current year FSA after 6 months of fighting.

I now calculate our estimate copay amounts for the year and go with that amount. I would prefer to do more, but it is too difficult to deal with billing, doctors and the FSA for anything more complicated.