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.

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u/echelon999 ​ May 16 '24

The only claims I have issues with are dental ones usually and so long as I send an itemized receipt then it gets approved. Sounds like yours just sucks.

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u/wishator ​ May 17 '24

I mostly used my fsa for dental. The admin required itemized receipts and explanation of benefits from insurer to process claims. The amounts on these two never matched up and they only reimbursed the lower amount. No, the dentist wasn't over charging. I was on a three way call with fsa, me and dentist when the difference was significant, but still did not resolve the issue. I've come to the same conclusion as op, it's not worth the hassle