How to Use a Health Care Spending Account

Flexible spending accounts are a valuable way to get the most for your money while taking care of your health. Health care accounts can assist you in paying for health care items with your pre-taxed dollars. The following will help you understand how to use your health care account as well as maximize the benefits of your account.

Instructions

Difficulty: Easy

Choose the Amount to be Placed in Your Account

1. Go through your finances and determine how much money you wish to set aside in your account. This will typically be divided by the number of pay checks you receive and the resulting amount will be deducted from your gross pay and added to your flex account.
2. Review your typical spending on health related items. Make sure you are calculating only items that treat a condition, rather than including such items as vitamins to your list.
3. Take into consideration the time you expect to stay with your current employer. If you plan on leaving in the very near future, you will not receive the full benefits of a flex care account.
4. Check your bank accounts as most claims are paid via direct deposit.

Set Up Your Flex Account

5. Contact your HR department to determine what paperwork needs to be filled out.
6. Follow the instructions on the papers exactly to insure your account is set up properly and quickly.
7. Discuss how you can access your account information on your company's website. Also find out if claims forms are available online.

Managing Your Records

8. Keep all receipts for items that can be deducted from your health care account. Remember that any item used to treat a condition can be claimed, such as aspirin, cough syrup, contact lenses and glasses, as well as ace bandages and heat wraps.
9. Print out a claim form, fill it out precisely and attach the relevant receipts. Make copies of both the filled-out claim form, as well as all your receipts. You'll want to have them in case of an unforeseen problem.
10. Fax or mail your claim form to the proper location. Note the date so you know when the claim should be paid. This is important information if you need to contact the claims department at a later date.
11. File the copies of your claim forms close to, but not with, the receipts you have not yet claimed. This will insure you have all your documentation together.

Tips & Warnings

• Remember that the money in the health care flex spending account must be used by the end of the calendar year, and claimed by March 15th of the next year. Do not put more money into the account than you can claim, as any unclaimed money will not be returned to you.