For many of us, its the time of the year where we get to pick our health insurance for next year. For people who get insurance through an employer, one election you will have to make is whether to contribute to an FSA?
What is an FSA?
In simple terms, an FSA is like a special piggy bank your employer sets up where you can stash away dollars to pay for eligible healthcare expenses. Every year you elect an amount to contribute (up to $3,200 for an individual or $6,400 for a couple), with this contribution being deducted in equal share from each pay packet during the year.
FSAs are awesome for three reasons:
1. Save by spending pre-tax money
The money that goes into an FSA is "pre-tax". This means the money goes into your FSA before Uncle Sam takes his cut. So, you're essentially using income that would've gone to taxes to cover things related to health. Said differently, your saving will equal your marginal tax rate. In California, if your last dollars of income are at the highest marginal tax rate (37% federal and 13.4% state) this saving is >50%.
2. Get interest-free financing from your employer
Whatever amount you choose to contribute to your FSA for the year is typically available to spend on the first day of your plan year. So eligible healthcare expenses can be paid in full on January 1 and essentially paid off over the course of year, interest free. Quit your job or are fired during the year? Typically you won't need to pay back anything that is owed.
3. Use it for more than you might think
There are a lot of things you can use an FSA for, including items you may already be buying. Eligible FSA purchases extend well beyond typical pharmacy products. In the wellness space, you can use FSA dollars for activity trackers, smart scales, sleep aids, massage guns, and much more. If you're paying for GLP-1 medications out of pocket, you may even be able to use your FSA funds to cover those costs!
So, what's the catch?
The biggest catch is that if you don't spend the funds in an FSA you typically lose them (Note: there is a small amount that you can rollover).
And this is where most people get stuck. Every year we have to elect if and how much we want to put in an FSA and we don't have a clear idea what we are going to spend it on. Particularly if we "feel" generally healthy.
And even if we do know we will buy some things, we tell ourselves the saving is too small to worry about.
Enter Prenuvo
A Prenuvo scan is the most comprehensive imaging exam available in the US. In 45 mins we screen every organ in the body and assess for cancer as early as Stage 1 and more than 500 other diseases.
Tens of thousands of people use Prenuvo annually to stay on top of their health. For them, Prenuvo is an annual health ritual sort of like visiting the dentist but for the entire rest of your body.
The scan provides them with a compete picture of their health and clear goals on what to work on for the next year to improve it.
And Prenuvo scans may be FSA (or HSA) eligible. We encourage you to check with your administrator before booking to confirm eligibility and understand any documentation requirements.
There is no better way to take control of your health and to kick off a healthy 2025.
Disclaimer
The above is my opinion, I am not a tax accountant.
Andrew Lacy, Prenuvo CEO
