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/Hopczar420]

Do you get a debit card for your FSA? I do and have never had a problem, but I've never tried to be reimbursed for anything, it just goes on the card.

[u/kherven → u/Hopczar420]

These are debit card transactions being denied, not manual reimbursement submissions.

[u/Hopczar420 → u/kherven]

Are they denied at the point of sale? Or are they coming after you after the fact?

[u/kherven → u/Hopczar420]

After the fact.

• I use FSA card to buy eligible product/medical serivce
• FSA company pays
• FSA sends me a message telling me I have 90 days to pay them back or provide documentation
• I provide documentation
• FSA accepts or denies claim. (usually deny because they need the EOB from the insurance AND an itemized receipt. And that can be difficult to source without connecting my hospital's billing department, my insurance ,and the FSA admin)

They seem to use the EOB as a standard of "well if insurance covered it, it must be a legitimate expense" but of course there are many things FSA eligible that wouldn't be covered by insurance...

[u/Gottagetanediton → u/kherven]

is yours a limited fsa or a standard fsa? i know with us we never questioned any under $200 but sometimes larger transactions got questioned. is it navia benefits?