Using A Health Spending Account To Buy Diapers?

[Guest Pizaz]

I recently signed up for a health spending account for my work -- basically you put money into this account tax free, and can spend it on health care or health supplies (even OTC items like Advil). Has anyone with one of these accounts bought diapers with them? I know if I don't spend it all in a year, I lose the cash.

I might be concerned though that my employer knew what I was buying ... although I doubt it, because that seems like a huge invasion of privacy. Usually the administrator of the account requires receipts, but would they want a doctor's note that I needed diapers?

If anyone's tried this, your thoughts would be appreciated. Thanks.

[Abby]

Are they going to ask for a doctors note, proving you needed the Advil? Not likely, so they probably won't ask about the diapers.

[tndyperboy]

First to directly answer the question; I think diapers would qualify under HSA rules if you are medically incontinent.

Second, to your privacy concerns; your plan administrator has no visibility on what is paid for with the HSA account. I know, I am the admin of our HSA plan (and I am one of the owners too, busy life). Once the funds are transferred to your account they are yours to do with as you wish. All we get is a report on contributions to the account. I can't even see what Blue Cross pays out due to HIPA rules. So, don't fret or worry about it.

And who is looking for violations of HSA rules? The IRS! Health Savings Accounts are part of the IRS code, go figure. Unless you get a letter from "them" asking for supporting documentation no questions are going to be asked.

[DiaperKitty]

I have used a reimbursement similar to what you have last year. All I had to do was issue a receipt with my claim and they just reimbursed me with no questions. Of course I did by them at a pharmacy store so that may have added to making it easier.

[sarah_ab]

i know one important thing however is that you cannot stockpile supplies with ur card.. as in you can't go any buy like 10 packs of advil, same with diapers... I"m not sure what would count as stockpiling on adult diapers, however, if you start buying a lot, the company through which you have the plan (not your employer but the plan provider) could request documentation that you need say two bags of diapers a week etc... so just be cautious of that.

[Guest Pizaz]

Thanks for the tips everyone. Good stuff to know.

[diapernh]

i have sent in receipts from xp medical before. i keep my receipts till about september when i can use some money, then submit them.... i have even called the dr. office and asked for a print out of the times i visited and copays i paid over a year's time.... and submitted it before the cutoff for that plan year.

i have never once been asked for further documentation.... honestly think about it, if i am submitting them a receipt for adult diapers they are assuming i need them

[Three Rivers]

I have never had a problem submitting the receipts for mine. No questions asked.

[diaperpt]

The primary reason I personally would not use the account for diapers or other supplies is that the account is through my wife - who is blissfully unaware of my frequent diaper use. Further, with two daughters in college both using the account for their prescriptions etc, it is better for us not to run the account down too much.

Other than for my own family reasons, it is a GREAT way to fund your diaper supplies if you have this account available to you!

diaperpt

[sarah_ab]

i have to much dental work needing to be done to be able to use my flex plan for diapers.... but its nice to think about..

[redneck diaper boy]

I use my flexible spending account to buy diapers. It has never been a problem. The invoice just has to indicate that it is an adult diaper or adult incontinence product.

My flex account is managed by AETNA.

I recently signed up for a health spending account for my work -- basically you put money into this account tax free, and can spend it on health care or health supplies (even OTC items like Advil). Has anyone with one of these accounts bought diapers with them? I know if I don't spend it all in a year, I lose the cash.

I might be concerned though that my employer knew what I was buying ... although I doubt it, because that seems like a huge invasion of privacy. Usually the administrator of the account requires receipts, but would they want a doctor's note that I needed diapers?

If anyone's tried this, your thoughts would be appreciated. Thanks.

[Mr. Sea Otter]

I looked into doing it with my health plan. The fine print stated that it needed to be for a medical problem, which I have to admit I do not have. I could go to a Dr. and lie, or submit a false claim, but its not worth it for me.

[hidden]

ive never heard of anything like this. where i work, there are no benefits what so ever

[redneck diaper boy]

Some American employers allow employees to stash away up to 3000 bucks in a special account. The money is set aside from your base pay and NOT subject to income tax.

In my case it was a good thing because it lowered my tax bracket.

The bad part, about a flex account is if you don't spend the money, the employer or account manager gets to keep the money.

For the last 10 years I have set aside the maximum. $3000.00 I have yet to lose a penny of it!

ive never heard of anything like this. where i work, there are no benefits what so ever

[tndyperboy]

Don't confuse FSA (Flexible Spending Account) with HSA (Health Savings Account). FSA is use it or lose it, but the rules are looser. My b/f has an FSA where he works.

HSA is money you and/or your employer contribute to an investment account. This has no annual "spend it" requirement, if you don't use it all it will be invested similar to a 401(k) plan, but for health care. HSA is always in conjunction with a high deductible health plan, ours has a $2,500 deductible, but you do get the negotiated discounts by your insurance carrier. For 2009 your are allowed to contribute a maximum of $3,000 for single and $5,995.00 for families.

Like 401(k) FSA and HSA contributions are deducted from your income before Fed Income Tax is calculated. These plans are governed by IRS regulations. The idea that since you are paying for health services directly you will become more involved in the cost of health care. I have, like most, found that to be very difficult. Most Doctors don't know what tests, procedures and medications cost.

IRS regulations require you to keep documentation in support of your purchases made with funds from these accounts. I just keep the receipts in a file for every year.

HSA are very good for young workers with few medical costs, the account balance can grow like a 401(k). For a business owner it is great; put in the maximum as an employer match and deduct the expense. If you have chronic conditions that require a lot of medication it would be difficult to build up the account balance to cover deductible and co-pays so you could be better off in a standard PPO plan.

There is a lot more to all this. Access to health care under the U.S. model of private "insurance" is overly complex. Most employers, like myself, have to rely on consultants to make any sense of it. So this is probably enough for a diaper fetish web site. Cheers.