Recovering Money from FSA Account - Tilted Forum Project Discussion Community

Lendari · 06-02-2011, 07:07 PM

Hello Tilted people, it's been a long time since I've posted here, but I thought of a question and figured that this might be a good place to get a bunch of opinions.

I recently started work at a new company. They had this thing called an FSA account... at my old employer they has a similar thing called an HSA account and every year I contributed 1000$ to it and every year it grew by 1000$. I once took a deduction for a 200$ dental visit. When I left... they gave me the cash from the account minus the taxes and everything was peachy.

The money was there if I needed it, expenses from the account were tax-free and when I didn't use it, it rolled over to make a nice emergency fund.

So at the new employer i filled out the FSA form the same... contribute 1000$ per year. This was supposed to be my new emergency fund (for a health plan that has a 2000$ deductible *omg*). There's one difference between FSA and HSA that no one mentioned.

If you don't spend it, you loose it. Literally, the feds steal the money from you at the end of the year... and that is NOT fucking happening. So basically I have < 6 months to spend 1000$. I'm 25, and I have no foreseeable expenses.

So here's what I want to do. I want to buy 1000$ of medical stuff, stuff that is reimbursable with only a receipt (so nothing that needs a prescription or doctors order) preferably only a few items. Submit a claim against the FSA and then return the items (so has to be physical goods that are returnable, not services).

I'm trying to think of how to reasonably pull this off.

The best I can come up with is to go to the biggest Wal-Mart I can think of and buy 1000$ worth of condoms or douches or aspirin (or all 3

), but finding someplace to buy that much stuff (and return it) seems like it might be problematic (this would be like 300 boxes of condoms) and raise too many eyebrows.

I'm not worried about the claim... these items are reimbusable, it's more like im kinda worried the store wont let me purchase in that quantity, or let me return them (any retail managers out there wanna give me an idea how you would handle this if a customer was trying to do this?)

Anyway, I was maybe hoping someone out there has some other ideas for items to buy that are FSA reimbursable and also returnable.

If worst comes to worst though, the feds are not getting that money.

---------- Post added at 07:07 PM ---------- Previous post was at 06:36 PM ----------

Hah I might have figured out an idea...

Can I return my Walmart.com purchase to a Walmart store?

All merchandise sold and shipped by Walmart.com may be returned to a store within 90 days of receiving it, unless otherwise noted in the Return Guidelines by Department chart below. For items sold by a Marketplace Retailer, contact the retailer directly.

genuinegirly · 06-03-2011, 02:54 AM

Sounds like a truly sketchy enterprise, one that I would never condone, one that would likely qualify as an illegal abuse of the system. I would think that safeguards would be in place to prevent such things from happening.

What about considering this as an opportunity to optimize your health and stock your medicine cabinet?

I recommend spending your extra cash on a few big ticket items that would come in handy anyway, assuming they are applicable to your situation:
First-aid kits
Medical-grade humidifier
Asthma-friendly air filtration system
Industrial breast pump
Sleep apnea machine
Acupuncture equipment

Services you may want to consider, which could be paid for with an FSA:
immunizations
birth control
sterilization procedures such as vasectomy
orthodontics

Handy little items:
Band-aids
Hand sanitizer
Eye drops
Contacts
Lens solution and cleaner
Eyeglasses
Earwax removal kits
Pill cutters and crushers
Crutches, braces, wraps
Tylenol and other basic pain relief
Nausea pills or bands

The cool thing about FSAs is that the scope of what you can purchase is much more broad than an HSA. They also tend to be more parent-friendly, since an FSA can be used for things like childcare. Seeing as how these things aren't applicable to your situation, I'm wondering why you chose an FSA in the first place.

Cynthetiq · 06-03-2011, 04:12 AM

They recently changed the FSA rules because people were doing these types of things buying up all the aspirin at the end of the year to pick up their left overs. This year is the first year in order to get such claims you have to have a prescription. Yes, in order to buy cold medicine and have the FSA cover it you must have a doctor's prescription to submit to the FSA for reimbursement.

The whole idea of an FSA is to pay for the PLANNED expenses. You obviously didn't plan when you decided upon your contribution.

Walmart will refund the money back to the card that it was charged, and some FSAs like mine give a MC/VISA which is to be used for purchases. This means that if I make a purchase on my own MC/VISA, they can deny the reimbursement when I submit the claim.

My suggestion to you is to get any or all procedures that you've postponed over the years. That dentist appointment you've been postponing? Go. That exam you've not done because you didn't think it was a big deal because you didn't want to spend the money, get it done. Wanted to get contacts or new glasses? Now is the time.

genuinegirly · 06-03-2011, 05:09 AM

Quote:

Originally Posted by Cynthetiq

They recently changed the FSA rules because people were doing these types of things buying up all the aspirin at the end of the year to pick up their left overs. This year is the first year in order to get such claims you have to have a prescription. Yes, in order to buy cold medicine and have the FSA cover it you must have a doctor's prescription to submit to the FSA for reimbursement.

The whole idea of an FSA is to pay for the PLANNED expenses. You obviously didn't plan when you decided upon your contribution.

Walmart will refund the money back to the card that it was charged, and some FSAs like mine give a MC/VISA which is to be used for purchases. This means that if I make a purchase on my own MC/VISA, they can deny the reimbursement when I submit the claim.

My suggestion to you is to get any or all procedures that you've postponed over the years. That dentist appointment you've been postponing? Go. That exam you've not done because you didn't think it was a big deal because you didn't want to spend the money, get it done. Wanted to get contacts or new glasses? Now is the time.

Listen to Cyn. He knows his stuff.

Anxst · 06-03-2011, 06:36 AM

I highly recommend not attempting to purchase things and return them using your flexible spending account. If you get caught, and they decide it's fraud, the charges against you will make the 1k look laughable. Also, your chances of being turned in if anyone catches you at it are high, since they would get 10% of all the money it was found you defrauded the government program of. I'm not the kind of guy who would turn people in, but there are plenty who will do so for 100 bucks and the feeling of great justice.

That said, remember that it IS legal to recoup the following:

Mileage to and from doctor, dentist, and pharmacy trips. (I'm unsure what the mileage rate is currently. I last worked in insurance in 2008, and that was mostly life insurance.)
Get checkups! Teeth cleanings! Preventative care is seriously the best thing to do, and is what FSAs are for.
Tooth whitening and beautification are often covered. Look into getting a new smile.
Glasses? Prescription sunglasses are covered. Prescription goggles can be covered, which might be cool if you're the athletic type.
If interested, DNA sequencing can be covered by your FSA. It's about 200 bucks (last I looked), and will show you things like what greater risks you have for certain diseases with genetic factors. 23 and Me is a good service.
Condoms and other birth control are reimbursible.
Dancing, if your doctor prescribes it. Many doctors feel dancing is great for your health. Get a doctor to recommend it for you, and dancing lessons are eligible for FSA reimbursement.
Laser eye surgery. It'll be more than your 1k, but something to think about if your vision isn't perfect.
Swimming pool/spa memberships. Falls into the same category as dancing. If your doctor recommends it, it's recoupable!

genuinegirly · 06-03-2011, 09:44 AM

Quote:

Originally Posted by Anxst

Dancing, if your doctor prescribes it. Many doctors feel dancing is great for your health. Get a doctor to recommend it for you, and dancing lessons are eligible for FSA reimbursement.
Laser eye surgery. It'll be more than your 1k, but something to think about if your vision isn't perfect.
Swimming pool/spa memberships. Falls into the same category as dancing. If your doctor recommends it, it's recoupable!

These are great, Anxt! I bet this would be a good way to pay for some yoga or tai chi classes too.

ASU2003 · 06-03-2011, 07:19 PM

Does it go back to the Feds, or does it go to the banks & health insurance companies? I always thought it was the later.

This would be the simplest Health Insurance plan that a Ron Paul could announce. Just get rid of the stupid 1 year, everything goes away law. Just make it tax free medical care fund for you and your family. Imagine retiring in 20 years with $20-50k saved up to cover any deductibles and all that cash in the FSAs that isn't being used could be loaned out for true medical expenses if the person receiving treatment would be able to lead a normal life and repay the loan.

Lindy · 06-04-2011, 01:38 PM

Quote:

Originally Posted by Lendari

....I recently started work at a new company. They had this thing called an FSA account... at my old employer they has a similar thing called an HSA account and every year I contributed 1000$ to it and every year it grew by 1000$. I once took a deduction for a 200$ dental visit. When I left... they gave me the cash from the account minus the taxes and everything was peachy.

The money was there if I needed it, expenses from the account were tax-free and when I didn't use it, it rolled over to make a nice emergency fund.

So at the new employer i filled out the FSA form the same... contribute 1000$ per year. This was supposed to be my new emergency fund (for a health plan that has a 2000$ deductible *omg*). There's one difference between FSA and HSA that no one mentioned.
....if worst comes to worst though, the feds are not getting that money.[COLOR="DarkSlateGray"]

---------- Post added at 07:07 PM ---------- Previous post was at 06:36 PM ----------

Quote:

Originally Posted by ASU2003

Does it go back to the Feds, or does it go to the banks & health insurance companies? I always thought it was the later....

The Feds and insurance companies have nothing to do with this. Unspent flex plan funds simply revert to your employer.
Next time read -and be sure you understand- before you sign on to something like this. This was most likely explained in the documentation you got when you were hired.
Do you consider yourself an honest and responsible person?
Are those things at all important to your self image?
If so, you could just admit your mistake, accept the financial consequences, and move on, as a wiser and more careful person.
Or you could weasel.

Lindy

06-02-2011, 07:07 PM	#1 (permalink)
Lendari Upright	Recovering Money from FSA Account Hello Tilted people, it's been a long time since I've posted here, but I thought of a question and figured that this might be a good place to get a bunch of opinions. I recently started work at a new company. They had this thing called an FSA account... at my old employer they has a similar thing called an HSA account and every year I contributed 1000$ to it and every year it grew by 1000$. I once took a deduction for a 200$ dental visit. When I left... they gave me the cash from the account minus the taxes and everything was peachy. The money was there if I needed it, expenses from the account were tax-free and when I didn't use it, it rolled over to make a nice emergency fund. So at the new employer i filled out the FSA form the same... contribute 1000$ per year. This was supposed to be my new emergency fund (for a health plan that has a 2000$ deductible omg). There's one difference between FSA and HSA that no one mentioned. If you don't spend it, you loose it. Literally, the feds steal the money from you at the end of the year... and that is NOT fucking happening. So basically I have < 6 months to spend 1000$. I'm 25, and I have no foreseeable expenses. So here's what I want to do. I want to buy 1000$ of medical stuff, stuff that is reimbursable with only a receipt (so nothing that needs a prescription or doctors order) preferably only a few items. Submit a claim against the FSA and then return the items (so has to be physical goods that are returnable, not services). I'm trying to think of how to reasonably pull this off. The best I can come up with is to go to the biggest Wal-Mart I can think of and buy 1000$ worth of condoms or douches or aspirin (or all 3 ), but finding someplace to buy that much stuff (and return it) seems like it might be problematic (this would be like 300 boxes of condoms) and raise too many eyebrows. I'm not worried about the claim... these items are reimbusable, it's more like im kinda worried the store wont let me purchase in that quantity, or let me return them (any retail managers out there wanna give me an idea how you would handle this if a customer was trying to do this?) Anyway, I was maybe hoping someone out there has some other ideas for items to buy that are FSA reimbursable and also returnable. If worst comes to worst though, the feds are not getting that money. ---------- Post added at 07:07 PM ---------- Previous post was at 06:36 PM ---------- Hah I might have figured out an idea... Can I return my Walmart.com purchase to a Walmart store? All merchandise sold and shipped by Walmart.com may be returned to a store within 90 days of receiving it, unless otherwise noted in the Return Guidelines by Department chart below. For items sold by a Marketplace Retailer, contact the retailer directly. Last edited by Lendari; 06-02-2011 at 06:50 PM..

06-03-2011, 02:54 AM	#2 (permalink)
genuinegirly Eat your vegetables Super Moderator Location: Arabidopsis-ville	Sounds like a truly sketchy enterprise, one that I would never condone, one that would likely qualify as an illegal abuse of the system. I would think that safeguards would be in place to prevent such things from happening. What about considering this as an opportunity to optimize your health and stock your medicine cabinet? I recommend spending your extra cash on a few big ticket items that would come in handy anyway, assuming they are applicable to your situation: First-aid kits Medical-grade humidifier Asthma-friendly air filtration system Industrial breast pump Sleep apnea machine Acupuncture equipment Services you may want to consider, which could be paid for with an FSA: immunizations birth control sterilization procedures such as vasectomy orthodontics Handy little items: Band-aids Hand sanitizer Eye drops Contacts Lens solution and cleaner Eyeglasses Earwax removal kits Pill cutters and crushers Crutches, braces, wraps Tylenol and other basic pain relief Nausea pills or bands The cool thing about FSAs is that the scope of what you can purchase is much more broad than an HSA. They also tend to be more parent-friendly, since an FSA can be used for things like childcare. Seeing as how these things aren't applicable to your situation, I'm wondering why you chose an FSA in the first place. __________________ "Sometimes I have to remember that things are brought to me for a reason, either for my own lessons or for the benefit of others." Cynthetiq "violence is no more or less real than non-violence." roachboy Last edited by genuinegirly; 06-03-2011 at 02:57 AM..

06-03-2011, 04:12 AM	#3 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	They recently changed the FSA rules because people were doing these types of things buying up all the aspirin at the end of the year to pick up their left overs. This year is the first year in order to get such claims you have to have a prescription. Yes, in order to buy cold medicine and have the FSA cover it you must have a doctor's prescription to submit to the FSA for reimbursement. The whole idea of an FSA is to pay for the PLANNED expenses. You obviously didn't plan when you decided upon your contribution. Walmart will refund the money back to the card that it was charged, and some FSAs like mine give a MC/VISA which is to be used for purchases. This means that if I make a purchase on my own MC/VISA, they can deny the reimbursement when I submit the claim. My suggestion to you is to get any or all procedures that you've postponed over the years. That dentist appointment you've been postponing? Go. That exam you've not done because you didn't think it was a big deal because you didn't want to spend the money, get it done. Wanted to get contacts or new glasses? Now is the time. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

06-03-2011, 06:36 AM	#5 (permalink)
Anxst Condensing fact from the vapor of nuance. Location: Madison, WI	I highly recommend not attempting to purchase things and return them using your flexible spending account. If you get caught, and they decide it's fraud, the charges against you will make the 1k look laughable. Also, your chances of being turned in if anyone catches you at it are high, since they would get 10% of all the money it was found you defrauded the government program of. I'm not the kind of guy who would turn people in, but there are plenty who will do so for 100 bucks and the feeling of great justice. That said, remember that it IS legal to recoup the following: Mileage to and from doctor, dentist, and pharmacy trips. (I'm unsure what the mileage rate is currently. I last worked in insurance in 2008, and that was mostly life insurance.) Get checkups! Teeth cleanings! Preventative care is seriously the best thing to do, and is what FSAs are for. Tooth whitening and beautification are often covered. Look into getting a new smile. Glasses? Prescription sunglasses are covered. Prescription goggles can be covered, which might be cool if you're the athletic type. If interested, DNA sequencing can be covered by your FSA. It's about 200 bucks (last I looked), and will show you things like what greater risks you have for certain diseases with genetic factors. 23 and Me is a good service. Condoms and other birth control are reimbursible. Dancing, if your doctor prescribes it. Many doctors feel dancing is great for your health. Get a doctor to recommend it for you, and dancing lessons are eligible for FSA reimbursement. Laser eye surgery. It'll be more than your 1k, but something to think about if your vision isn't perfect. Swimming pool/spa memberships. Falls into the same category as dancing. If your doctor recommends it, it's recoupable! __________________ Don't mind me. I'm just releasing the insanity pressure from my headvalves.

06-03-2011, 07:19 PM	#7 (permalink)
ASU2003 immoral minority Location: Back in Ohio	Does it go back to the Feds, or does it go to the banks & health insurance companies? I always thought it was the later. This would be the simplest Health Insurance plan that a Ron Paul could announce. Just get rid of the stupid 1 year, everything goes away law. Just make it tax free medical care fund for you and your family. Imagine retiring in 20 years with $20-50k saved up to cover any deductibles and all that cash in the FSAs that isn't being used could be loaned out for true medical expenses if the person receiving treatment would be able to lead a normal life and repay the loan.