Top 5 FSA Buys Before Grace Period Ends

Top 5 FSA Buys Before Grace Period Ends

by | Mar 14, 2025 | Blog

As the FSA grace period draws to a close on March 15, it’s crucial to make the most of your remaining funds. Flexible Spending Accounts (FSAs) offer a fantastic way to save on healthcare expenses, but any unused money will be forfeited if not spent by the deadline. To help you avoid losing your hard-earned dollars, here are five essential items you can purchase with your leftover FSA money:

1. Prescription Eyewear

Why not treat yourself to a stylish new pair of prescription glasses or contact lenses? Not only will you see better, but you’ll also have a chic accessory. Check out the options at the FSA Store.

2. Over-the-Counter Medications

Stock up on everyday essentials like pain relievers, allergy meds, and cold remedies. These are FSA-eligible and super handy to have around. You can find a wide selection at the FSA Store.

3. First Aid Supplies

Be prepared for minor injuries and emergencies by updating your first aid kit. Grab some bandages, antiseptic wipes, and gauze. Check out the FSA Store for all your first aid needs.

4. Health and Wellness Products

Consider investing in health and wellness products like heating pads, hot/cold packs, or even a new humidifier. These items are FSA-eligible and can help you stay comfortable and healthy. Explore the options at the FSA Store.

5. Sunscreen and Skincare Products

Protect your skin by investing in high-quality sunscreen and skincare products. Many of these items are FSA-eligible, making them a smart choice for using up your remaining funds. Check out the FSA Store for some great options.

Don’t let your FSA money go to waste! By purchasing these essential items, you can maximize your savings and ensure you’re well-prepared for the year ahead. Remember to check with your FSA provider for a complete list of eligible expenses and make your purchases before the grace period ends. For a full list of eligible FSA items click here.

Top 5 FSA Buys Before Grace Period Ends

Understanding COBRA Coverage Termination for Small Premium Shortfalls

by | Feb 13, 2025 | Blog

When managing COBRA coverage, it’s important to know what happens if a qualified beneficiary pays less than the full premium amount. Here’s a simplified guide:

Timely Payments and Grace Periods

Qualified beneficiaries must make timely COBRA premium payments, with a 30-day grace period each month. If the full premium isn’t paid by the end of this period, coverage can be terminated. However, there are special rules for small shortfalls.

What is an Insignificant Shortfall?

An insignificant shortfall is a payment that is less than or equal to the lesser of $50 or 10% of the required premium. For example, if the premium is $490, a shortfall of up to $49 is considered insignificant.

Handling Insignificant Shortfalls

  1. Notify the Beneficiary: Inform them of the shortfall and give them a reasonable period (usually 30 days) to pay the difference.
  2. Grace Period: Allow the beneficiary to pay the remaining amount during this period to avoid termination.
  3. Accept Underpayment: Alternatively, the plan can accept the underpayment as full payment.

Best Practices

  • Include Procedures: Clearly outline shortfall procedures in your COBRA plan.
  • Prepare Notices: Have a standard notice ready for shortfalls.
  • Prompt Notification: Send the notice as soon as a partial payment is received.

By following these steps, you can manage COBRA coverage effectively and ensure compliance with regulations. This helps prevent unnecessary termination and gives beneficiaries a fair chance to maintain their health benefits.

Source: Thomson Reuters