CPAP supplies not eligible flexible spending account??

All of my Cpap supplies (from DME or from online sources like Cpap.com) are paid using the Credit card linked to my FSA. Up until this year, you could not roll over monies at the end of one year to the next, but you could submit with proper documentation receipts items that you purchased that qualified up until March (I think).

Starting this year, you can roll over up to $400 over into the next year from the FSA account. However, the plan you are using has to support it. Most do. It IS an employer option but enabling it, increases participation.

What is a proper receipt:

Patient's Name:
The name of the person who received the service or for whom the item was purchased for. For retail store purchases, this information may be excluded.
Provider's Name:
The provider that delivered the service or where the item was purchased.
Date of Service:
The date on which services were provided or the item was purchased.
Type of Service: A detailed description of the service provided or item purchased. A bag tag is sufficient for prescriptions.
Cost:
The amount you paid for the service or product and/or the portion that is not reimbursed through your insurance carrier.

What is typically not covered now that used to be are things like bandages, tape etc...

But masks, RX prescriptions, co-pays etc are.

Many times after a purchase I've been asked to provide documentation because they didn't get the information from the source (just the amount). I have yet to have problems doing so since I keep every receipt related to medical.

BTW, I have yet to go a year with money left in my FSA that I could not use up with purchases I had already made that year, or could make before the year ended. Eyeglasses are a good example.

Drowsy Dancer wrote:

Wulfman... wrote:

cathyf wrote:

Wulfman... wrote:Sorry, I've never used a FSA and consequently never had to deal with that stuff.
Another reason I just bought all my stuff out-of-pocket after the initial equipment purchase.

But using the FSA is buying it out-of-pocket -- it's your money in your FSA. The only question is whether you pay taxes on the money.

In the years I was working for my last employer (1996 - 2009) I never had any medical expenses until 2005 with my Sleep Apnea diagnosis and therapy. But, during most of those years (and even after starting CPAP therapy) I never met (or even used part of) the deductible and the FSA was "use it or lose it"......so, I wasn't about to lose that money. The way I understand it now, there's a "rollover" that applies to the contributions.


Den

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You can roll over the funds in an HSA (Health Savings Account) from year to year; the funds in an FSA (Flexible Spending Account) you cannot.

HSA balances can be rolled over. HSA accounts are used by some folks to reduce their AGI or "tax footprint" since the account is funded with pre-tax dollars. I believe balances roll over to the employee when they separate from employment or some such, but I've never looked into it - I am sure there are land mines involved in that kind of deal and I am using FSA anyway.

If I am not mistaken it was beginning in tax year 2013 there was a rule change that would permit employers to opt in to a rollover provision for FSA account residual balances to next calendar year up to $500 per year. This is at the discretion of the employer. It was instituted very late in 2013 I think, but is out there for employers to participate in if they choose to do so. As always, YMMV and be sure to consult your tax professional before getting too creative

I had a HSA with my last employer. When I separated last year in January it had over $3000 in the account. It is nearly depleted now, but the point is, the money is yours, but still needs to be spent on medical. They are a nice way of funding high deductible insurance with pre-tax dollars. I miss the days when everything was just covered with a minimal copayment.

I have had no trouble using FSA for any of my CPAP supplies. I don't use the FSA debit card, I submit receipts. Never heard of an employer limiting the eligible items before.

The OTC meds thing was a little different - I think they were finding too much abuse; people buying and re-selling and whatever. The potential for that is there for CPAP supplies as well of course, but it's a little too much hassle for most tax-cheats to bother with.