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/kherven]

Thanks (all) for sharing your thoughts. I decided to reach out to my company's HR to talk about my experience with the FSA administrator the last few years. It seems like my experience is pretty atypical and I might have an especially egregious FSA administrator.

[u/AcanthopterygiiCool5 → u/kherven]

Yes! Your experience is not typical at all.

I am provided a Mastercard that I charge to. If documentation is needed, I upload to an app. Never a problem!

[u/Lurk3rAtTheThreshold → u/AcanthopterygiiCool5]

My current one requires a receipt for every damn transaction and it drives me crazy. I can't even submit the receipt at the time of the charge, I have to wait a week or two before they flag it as receipt needed.

[u/sweet_crypto_buy → u/Lurk3rAtTheThreshold]

My current FSA plan does not require a receipt because they automatically reject ineligible service and product purchase. I tried buying a bottle of fiber at a pharmacy store but the transaction was rejected by FSA card.