As I'm sitting here completing my open enrollment, under ObamaCare, FSA is capped at $2500 down from $7000 starting January 2013. Not happy—
Ulema (@Smart_BMW) November 19, 2012
First, the layoff bomb due to Obamacare. Now, the avalanche of increasingly unaffordable plans, and cost increases in the form of FSA (Flexible Spending Accounts) caps.
Obamacare at work for middle class: It cut the FSA (flexible spending accounts) for health care in half. Why?—
Deena (@Kipsmom444) November 18, 2012
I am really, really annoyed about the FSA caps at $2,500 starting in 2013. Thanks Obamacare. More money out of our pockets.—
Bethany S. Mandel (@bethanyshondark) November 15, 2012
Flexible Spending Accounts have actually been helpful in allowing people keep the cost of their health care down when dealing with out-of-pocket expenses, as Human Events explained recently.
A Flexible Spending Account allows workers to put aside money from their paycheck for health care expenses not covered by their health insurance. Because the money is pre-tax, whatever the amount of the contribution is deducted from the participant’s taxable income. Neither is it a taxable event when the participant withdraws the funds for an authorized medical expense.
The limit on contributions is a tax increase because it exposes more income to taxation, she said.
“You save anywhere from 25 cents to 40 cents on every dollar you use in the flexible account because of the tax protection,” Dietel said.
What's the reasoning to limiting the FSA amount to $2500? My friend is not too happy right now. Is govt picking up tab? re: Obamacare—
Christina R (@anaria) November 13, 2012
More from Heartland:
Flex Spending Accounts and Health Savings Accounts: FSAs will now be capped in 2013 at $2500 (before they were limited only by employer). If you’re one of the thousands of people who have a special needs kid and had been using your FSA for their education payments, you’re out of luck. We already have the increased penalty for HSA withdrawal, so be aware of the other restrictions on your HSA, including no longer being able to purchase things over the counter without a prescription.
For the children? If by “for,” you mean harming.
If that wasn’t bad enough, Twitter users are reporting that their health care premiums are going up. You can totally “keep your plan,” so long as you can pay way more.
I just found out that health insurance premiums of all 600 employees of my firm are going up $100 a month. Obama said they would go down.—
GAYRIGHT (@gayright) November 15, 2012
File under "Thank you, Mr. President, may I have another," our firm's health insurance is going up 22.3% on top of 24.3% last year.—
Armstrong Wealth (@armstrongreport) November 15, 2012
So today we find out how much our health insurance goes up at work.. as if paying $550 a month is not enough…—
KamSam (@KamSam1979) November 19, 2012
Got a letter in the mail this week that my healthcare premiums are going up 14%. Why was it called the Affordable care act?—
Bethany S. Mandel (@bethanyshondark) November 13, 2012
Just signed up for health insurance at work. Whadda ya know, it's gone up. WHAT
The Kalamazoo Kid (@wife3kidsnodogs) November 14, 2012
Medical Insurance went up 25 percent again at work
Obama you are not helping the middle class because that gets passed on to the employee—
susan pile (@PileSusan) November 17, 2012
Annual insurance enrollment at work. Looks like I'm taking an effective 2.5% pay cut thanks to premiums going up almost 20%.—
Lewis Gregory (@Linedan) November 12, 2012
Insurance @ work went up… yay? obamacare—
Stephen Brooks (@BrooksStephen) November 14, 2012
Like the devastating layoff bombs and hiring freezes, look for this to continue, sadly. Forward!