Obamacare and Flexible Spending Accounts

We use our medical flexible spending account every year to the maximum, which is currently $3,500.  We have three kids and use up that much in co-pays alone.  A co-worker told me that the flexible spending accounts are going away under Obamacare.  Is that true?

Penny Wise

Dear Penny Wise,

No, it’s not true.  Health reform will not take away flexible spending accounts, but it will limit them to $2,500 per year starting January 1, 2013.

If your employer offers more than one plan, you could consider buying the one with the lowest co-pays.  Even if it costs more to join the richer plan, it could end up being cheaper for you.

Another strategy is to maximize what you get for your co-pays.  You might save money by using the plan’s mail order pharmacy.  Some plans offer members a lower co-pay if you join the disease management program.  Ask your family doctor to help you strategize.

Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.