How does the Affordable Care Act affect my flexible spending account?
Dear Healthy Planner,
Short answer: not much. Under the Affordable Care Act, medical flexible spending accounts (also known as reimbursement accounts) continue to operate as they have in the past but the maximum annual benefit is capped at $2,500.
The services and supplies that the account can pay for — office visit co-pays, contact lenses, eyeglasses, deductibles, prescription drugs, etc. — did not change. See IRS Publication 502 for a complete list of expenses that you can pay for with your medical reimbursement account.