Flexible Spending Accounts

It's January again....  and I am so happy.  I upped my flex spending contributions for 2009.  Which brings me to the post about flex spending accounts and being able to use your monies for protein products, vitamins, supplements, etc. Did you know about this? 

 All you need is a letter from your surgeon.  The letter of medical necessity should include that you have had gastric bypass, and that these supplements, protein products, vitamins etc are necessary for your health and not just a "general well being" usage.

I have done this since my gastric bypass in Oct 06.  I am reimbursed for vitamins, iron, sublingual b12, protein bars, protein powders, ready to drink proteins, of course they also reimburse for things such as liquid tylenol, over the counter etc.  There are some items they do not cover but I don't purchase anything not covered, so I don't know what they are.

My flex spending is great.  I have a credit card/debit card type of thing and the doc's office & pharmacy are able to use that to cover my health expenses.  Vitamin Shoppe, BE, etc do not use the card as they are not set up to do so, but I am able to get my money back within 7 days after submitting them via fax to the company.  They direct deposit the funds into my checking, which is quick & easy.

 You may want to inquire if you have a flex spending account.

Good Morning Mel!   

I hate to burst your bubble so early in the A.M. - BUT there has been a major change by the IRS in the use of FSA accounts.  They can no longer be used for vitamins and protein shakes.  I asked this when I signed up for mine this past fall.  In the infinet (SP) wisdom of the IRS, they decided that Vitamins and Protein Shakes were preventative and therefor no longer covered starting in 2009.  I too hate this!  

Sorry!


Beth

 Really???  That bites!

I went to Walgreen's last night and got some probiotics . . . it printed FSA next to the item on my receipt, which usually means it'll be covered.  I typically pay for my vitamins and supplements out of my pocket anyway and save my FSA for my numerous meds and doctor appointments (and surgery this year!).

Gotta love the IRS.  NOT!  But I do love my FSA.  We have one of those credit card types as well and it makes life so much easier not having to file claims after the fact.  

Thanks for the update, Beth!
Denise

In a panicking frenzy...  I called the IRS and visited their website.  There are two publications that speak on these issues:  Publication 502 and 969.  502 speaks of flex spending accounts while 969 speaks of health savings accounts.  An IRS agent (id# 3109763) who has worked there 8 years looked up the current information and states that the IRS guidelines have not changed for 2009.  He does state, however, that individual employer plans can change.  I went to my flex spending website and the guidelines are the same as last year.  So that means that my expenses are still covered, WHEW THANK GOODNESS!

There are a few sections that are noteworthy.  Publication 502 states this about Nutritional supplements:  "You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, "natural medicines," etc unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician.  Otherwise, these items are takent o maintain your ordinary good health, and are not for medical care."  So it is possible to get these items reimbursed. 

The rep said that there are items not DEDUCTIBLE on a person's taxes, but they can be eligible to be reimbursed under a member's flex/health spending accounts.  Page 8 of the Publication 969 states "qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction.  These are explained in Publication 502, Medical and Dental Expenses.  HOWEVER, even though non-prescription medicines (other than insulin) do not qualify for the medical and dental expenses deducation, they do qualify as expenses for HSA purposes."  In other words, these items cannot be a deduction on your taxes, but can be reimbursed under the hsa plans.

 I can breathe again.  Thankfully.  I love my flex spending account.

Normal or regular folks have never been able to use their flex spending for vitamins as its considered well being.  But for us, with our letter of medical necessity, it was covered.  I am going to do some more research on this and make sure...  if so, yes that sure bites because I alloted a LOT of money this year.  And as you know, if you don't use what you alloted, you lose it.  You might be hearing me cry like a baby very soon.  Or screaming with glee if its not true.  I am going to find out.

I saw my PCP yesterday who added some amino acids to my regimen.  He wrote it out in the form of a prescription and used the diagnosis code of 579.3, Post WLS caused malabsorption.  I wonder if this will help with FSA reimbursement? 

Normally, you control the FSA as it is put in a account for you to control.  I have a credit card type deal where my employer & I put in money, then I use it as I see fit.  In reality the IRS is not going to audit your FSA for vitamins unless you get a full audit and if it is medically necessary then it is ok.  Our comptoller even says allergy medicine, bandaids, anything that relates to a condition is applicable.  I wouldnt worry about it, just dont buy that cheesy Santa Claus display and you will be fine.   Protein shakes are different unless you are put on them by doctor or if you arent getting in protein.  Just buying them to drink when you dont really need them is preventative.  But, all the shakes  & Unjury I have purchased during my liguid diet phase can be put under FSA.  Trust me, Uncle Sam or Big Brother isnt going to check in on your FSA, they have much bigger fish to fry than people who are medically required to take vitimans buying a whopping $100-$400 a year.  Take care.

[Putting on Benefits Administrator hat here]

While it is true that the IRS is not going to audit your individual FSA activity...They DO audit the companies who administrate these plans. Part of the reason for paying a company to do the administration of these accounts for us is so they will make sure the IRS regulations are followed to the letter so we (the employer) do not get in trouble.

The IRS regulations allow for OTC "medications" this allows for anything used to treat, not prevent, a medical condition. This does include bandaids, first aid cream, antacids, contact lens solution - bet ya didn't see that one coming, LOL - arthritis creams, aspirin or in our case Tylenol, cough and cold medicines, etc. Also, glasses and contact lenses are FSA deductible.

[taking hat off so I can fix my hair and go to work now]

And, yes, I am the benefits administrator for a company with over 9,000 employees.

My flex spending company does mandate substantiation process for every reimbursement.  Meaning, I have to send (I always fax) a copy of my doctor's letter of medical necessity with every claim.  Otherwise, it is denied.  While the IRS may not audit you, your flex spending company may require you to provide that letter each and every time you file a claim.  And as an rny patient, we do have a need for the protein supplements, vitamins, etc.  It's not like we are just drinking protein drinks and shakes cause they taste good.  I mean, yeah they do taste good... some of them...  but its for absorption issues...  surely not personal preference.

FSA all the way!  Enjoy life dont worry about it.  Even if you are paid to 

By the way Melsreturn, that faxing system stinks,  sorry you have to jump through sooo many hoops.  Take care..