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  One of the reasons why I don't use the program, is that I can not afford to put the money aside in a pretax account, then pay out of my pay check for expenses, and after that hope I get my money back after a couple of weeks. No thanks. Plus each year changes for me on what I spend at the doctors office. I can not afford to loose money. If there was a roll over I might consider it and if there was a debit card program to use like most private sectors use.

  Reader Posted October 15, 2007 2:52 PM
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  There are several reasons why people may not be using FSA. First, the funds expire and do not roll over into the next year. I just spent approximately $800 on glasses and prescription sunglasses just to keep from losing the funds for 2005 (I really didn't need the sunglasses). Secondly, I purchased a teeth whitening kit from my dentist only to find that it is considered "cosmetic" and therefore I was not reimbursed. If the program covered things that my health benefits do not cover; i.e. teeth whitening, laser hair removal, sclerotherapy, visits to a naturopathic doctor (preventive medicine), vitamins/natural supplements, etc. I believe there would be much more participation. It is difficult to determine, when you are otherwise healthy, what expenses you might incur throughout a year. This program may want to consider authorizing people to get out of the program if it is determined that they do not have a need for it or it has become a concern in their personal budget.

  On another note, why is it that the U.S. government, as large of a sector that we are, does not have better health benefits (including dental and vision) for its employees? There is no excuse for us not having the best benefit program. Are politics involved with a mission of only benefiting the government and not their employees? The "new" dental and vision program that will be available soon should be subsidized by the federal government instead of coming totally out of the employee's pocket.

  A Concerned Federal Government Employee

  GovExec.com reader Posted March 30, 2006 8:49 AM
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  Please beware. No one should use a debit card for anything! What is the advantage to us of giving them instant access to our money? Charge it and let them wait 28 days to get the money. You are giving up a month of interest on everything you put on a debit card. Over one's lifetime that is a lot of money that the financial institutions have moved from them paying to you paying.

  Taxpayer Posted March 20, 2006 7:41 AM
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  To correct a previous post . . . private sector employees are also subject to the IRS "use it or lose it" rule for Health Care FSAs. (The only accounts that allow rollovers are HRA's and HSA's which are available to federal employees and private sector employees if participating in a high deductible health plan.)

  If you don't have known medical/dental/vision expenses, don't contribute to an FSA. Which puts you in a wonderful position . . . no known medical expenses is a gift. Enjoy! There are worse things than having to pay taxes on a potential unplanned medical expense you may incur.

  If you have known expenses for medical, prescriptions, dental, vision, over the counter drugs, mileage, etc., then you should contribute. You will receive a significant tax break on these expenses.

  Debit cards are perfect for these accounts!

  GovExec.com reader Posted March 7, 2006 7:44 PM
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  Ray and Edward "hit the nail on the head"! My thoughts exactly.

  David Posted March 7, 2006 9:34 AM
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  Frank Titus wonders why more eligible people aren't signed up for flexible accounts. To my mind the primary reason is the fact that if you don't use it, the money is lost. If instead any leftover money, minus appropriate taxes, would be paid back to the employee, I believe that participation would skyrocket. My medical expenses are variable each year, so participation would be a gamble of whether I have expenses and can get the paperwork filled out in time, against saving 20 percent.

  Edward K Justice Posted March 2, 2006 3:32 PM
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  Tell Frank Titus that FSAs need a provision to roll it over into the next year. Losing your money at the end of the year because some FSA contractor decides that some medical procedure or item doesn't qualify for an FSA payment is not a sensible program. You have to decide at the start of the year how sick you are going to be for that year? Does that make sense? I'm surprised even 10 percent of the people signed up. In the private sector there is rollover. Why are we forced to lose unspent money in our accounts? I say no thanks until we get rollover.

  Ray Bielicke Posted March 2, 2006 12:48 PM
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  One reason employees in FERS do not utilize the pre-tax benefit of FSA is that it reduces the amount they pay into FICA and therefore the amount of Social Security they will receive in retirement.

  GovExec.com reader Posted March 2, 2006 8:24 AM