By Adam Allington, KWMU
St. Louis, MO – Dec. 31st marks the last day to spend money set aside in tax-deferred medical savings accounts. Often called "Flex Accounts", they allow individuals to defer a pre-tax portion of their paycheck toward health care not covered on their insurance plans.
Many flex account holders use the funds to cover things like special dental work, vision care or elective surgery. The catch is that if you don't spend it, you loose it.
Before the calendar rolls over there is still a chance to spend any money that might be left over. "People can easily get things like a new pair of eye glasses, or sometimes diagnostic tests, a physical even Tylenol or vitamins," says Dee Ann Glaser, a professor at the SLU Medical School.
"The key is not to over-save because you certainly don't want to loose that money but to try to figure out as accurately as possible for any planned circumstances and then maybe a little bit extra for the unplanned events that might occur".
Dr. Glaser cautions that medical savings accounts often cover a wide range of medicines and procedures so it is important to review your policy before setting money aside.