Health spendings account

[anontofu]

how common is it to have a health spendings account in lieu of benefits (small firm)? how much is considered to be a reasonable amount? 

[Hayesy-B]

I don’t know how common they are, but I technically have one. It’s $1000 I think, but I’ve never used it. 

[Cool_name]

On 5/3/2023 at 4:46 PM, Hayesy-B said:

I don’t know how common they are, but I technically have one. It’s $1000 I think, but I’ve never used it. 

Why wouldn’t you use it? 
 

You can run deductibles etc through it. 
 

I have one in addition to benefits.

[Hayesy-B]

8 hours ago, Cool_name said:

Why wouldn’t you use it? 
 

You can run deductibles etc through it. 
 

I have one in addition to benefits.

No real reason for not using it. I know it’d save me some money, but I only really have a few hundred dollars in expenses a year that I could put against it and I feel awkward passing the bill on to the firm. 

[Jaggers]

Don't feel bad for the firm. These accounts are meant to cover things that are out of pocket for you.

But I will admit to not submitting some things because I need to find a receipt, can't access the portal, etc.

Edited May 6, 2023 by Jaggers

[Chambertin]

Two previous small firms. 

My past firm had limited health benefits, and then about $500 or $750 health spending account. It was a taxable benefit the firm paid for so I tried to use it every year.

Current firm has no health benefits. I can however, put whatever amount I want into a health benefits account, and then I get reimbursed by the provider.

Costs the firm the admin fee, but otherwise it's a deduction so essentially I pay for all my health expenses out of pocket with before tax income rather than after tax. 

First is better if you don't have a lot of expenses, but if you say have a regular psychotherapist, or regular physio or some other regularly occurring issue, then the latter is better since health benefits run out pretty fast.