The Clock is Ticking

Using your benefits before the plan year expires is important. Most plans run on the calendar year, which means you may have less than a month to use the benefits before 2014 ends. If your benefits are employer sponsored, verify with your Human Resource Department if you are in doubt on the plan's benefit period.

If you have an FSA (Flexible Spending Account), you will forfeit the money in your account once the  plan year ends for qualifying expenses. If your plan offers a grace period, you can submit receipts for items purchased or medical EOBs (Explanation of Benefits) prior to the end of the plan year. The IRS dictates eligible FSA expenses and the financial limits of what you or the employer can contribute. The employer can opt to have the plan limit be less than the maximum. Since this is money you elected to contribute (in most cases), you are actually losing money if you do not use it. You may want to consider adjusting your election amount for the next plan year.

Some benefits may roll over into the following year, again this is at the discretion of how the plan was set up by the employer. Health Reimbursement Arrangements (HRA) can permit at least a partial carryover if funds remain at the end of the plan year. Check your plan document to see if this is the case.

Other reasons to use your benefits now are items like deductibles and co-pays may raise next year; your employer may not offer a particular benefit next year; and once the new plan year begins, your deductible resets and you will be responsible for the first dollar that is owed for any benefits used.

Remember the Open Enrollment window is a short time, so take time to consider your election decisions for the next plan year. See November's blog entry for more information on Open Enrollment for employer sponsored benefits. Remember the Medicare Open Enrollment period comes to an end in just a few days on December 7, 2014.