Medical FSA - Flexible Spending Account

So I just renewed up at work and I actually was happy with my FSA this past year. With all the expenses relating to the surgery I knew I was going to have I might as well have let it be non-taxed money.  For anyone who has one of these at work, I highly suggest you checking in to it. My Federal Law - Vitamins and "Suppliments" are an ok deduction - but it has special requirements.  Mine only required to have a note from my Doctor (surgeon) that stated I was required to have protein suppliments and vitamins for the rest of my life daily.  So, now, with that note, I can account for my $30/month vitamins and my protein powder and any of the Profect protein or ProteinX-18.  Where it gets touchy is if it can be considered food or drink you can't. However, I think the Isopure Clear drink is the only acceptable one.  So protein bars, and food do not count. I have bariatric chocolate cocoa (15g protein) that won't count. AchiveOne does not count. But your Protein powders - like Matrix, Unjury, Isopure, etc will count.  It is completely worth the effort - at least to me.  I add the cost of all my medical expenses (insurance co-pays) I expect to have, my protein powder cost, vitamin cost, medicine cost then multiply by 25% and subtract that 25% from the total.  Then that's what I ask to be taken out of my paycheck pre-taxed.  (the 25% because you never know what might happen and you can't get the money back if you don't spend it). But since it's pre-tax dollars, it lowers your taxable income - and in my case, my pay check actually came out more in the long run!

I use the flexible spending for both medical expenses and child care.  I love it and highly recommend it to everyone.  The great thing for me is that my surgery is Jan 2 and my flex account rolls over on Jan 1.  So I will be able to pay all of my out of pocket surgery expenses immediately with my flex credit card and the money is taken out of my paycheck pre-tax over the course of the year.  It makes my life alot easier. 

Meh!! You get a card?  LOL I still have to pay for everything up front, then file the paperwork and send in the receipts.  A Card would seem so much easier!

Yes there is a form to fill out and flex will send you a mastercard.  The cool thing is that for medical expenses the entire amount that you allocated for medical flex at your company's open enrollment is available on your card on Jan 1st... for instance we had open enrollment in October for 2008... I put $1500 on my medical flex (should have done more ) and that full $1500 will be on my card and available for me to use on Jan 1st Child care works differently... for child care you can only use the money as you pay it to flex... but since NCSU confirms payroll a week before payday, I actually get reimbursed for my child care expenses before the paycheck that the money came out of is even deposited into my account

How do they verify that the items on the medical card are valid items the Feds require?

If you use it on the 'wrong' things you have to pay it back, or they stop your card (and you lose the rest of the money).

The invalid transaction is suppose to be denied when they swipe the card.  If its not caught at the time of purchase, they will send a letter asking for a receipt and if the transaction is invalid you will just have to send payment to flex for the amount.  I see a posting on here that says you lose the rest of your flex money if you make an invalid purchase, that is not true.  Also, if you're not sure a purchase is covered, you can still do it the old way of paying out of pocket and then submitting documentation for reimbursement.  I use my card for all co-pays (office visit and prescriptions)  and I love it.