Flexible spending accounts (FSAs) are gaining recognition for their money-saving benefits on everything from doctor visits, over-the-counter medications, and vision care to bandages, crutches, and hospital beds. In fact, an estimated $30.7 billion was saved in FSAs in 2020 — an 8.7% increase over the previous year — according to medical equipment supplier AvaCare Medical.
“Medical supplies and equipment are among the most common purchases made with FSA funds, ranking as the third most common type of FSA spending,” notes a new report from AvaCare Medical. “With their tax-free benefits and ease of use, FSAs are an excellent way to save money while providing much-needed medical supplies and services. As the data indicates, flexible spending accounts are becoming increasingly popular, and the amount of money placed into these accounts is growing.”
While more than $1 million in FSA funds expired Dec. 31, the average contribution limit for FSAs is set to increase in 2023 — the result of the Internal Revenue Service adjusting the FSA contribution limits for inflation.
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