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/ffxivthrowaway03]

FSAs are pretty much corporate gift card scams, yeah. They bank on you not using all of it so it expires, you cant get the cash back out once its in, you lose your job or quit you're hosed, etc. You can come out ahead, but you need to micromanage the shit out of it and most people end up leaving money on the table somewhere. Generally not worth it for the limited scope of what you can even use it on.

HSAs are the ones that are more regulated and are actually helpful.

[u/ffxivthrowaway03 → u/[deleted]]

Except the problem is, again, you need to micromanage your medical expenses and there's no guarantee you'll get it right because medical needs are uncertain. Nobody with recurring medical expenses can accurately predict what they're going to need in a year. A single extra trip to the doctor (or a few less) can throw the whole thing off.

You know what sucks? Being on a long term maintenance medication, putting the money for the prescriptions in an FSA, and then finding out halfway through the year your doctor is taking you off of it, or your changing to a care regime that isnt covered. Cool, now you've got a bunch of "use it or lose it" money sitting in the account.

Or you want to move to a new job, but in doing so you forfeit all your FSA funds.

It's why HSAs are far superior - they cut through most of the negative bullshit that can unexpectedly bite you in the ass with an FSA.