There will be big changes to health care benefits next year. For years, American companies have been able to set up ‘Flexible Spending Accounts,' or FSA's.
FSA's allow employees to save money for medical costs-tax free. Come 2013, the max amount of money you can set aside in these accounts will be cut.
Chris Guardiola and her daughter Selena like doing puzzles. "Does this one fit?"
Figuring out which piece goes where can be tricky, just like budgeting for a family of four-especially when it comes to medical bills.
"We depend on having that, and the extra bonus is that it's tax free," said Guardiola.
Guardiola spends around 300 dollars a month on prescriptions for her kids. "A lot of our expenses are planned that we know, because we have such a big bulk," said Guardiola. "We spend almost 3600 dollars a year just coming from prescriptions that I know are going to be there."
Guardiola and her family use a ‘Flexible Spending Account." "That's money that I know is always going to be there for medical expenses for my family."
Right now, you can put up to $3500, tax free, in the FSA. "For the expenses that you know you're going to incur, its nice to know and plan for those."
Guardiola will have to plan for something else next year because come 2013 the max amount of money that can be put in a FSA will be $2500.
That $1000 will go back to the IRS and Uncle Sam. "We don't plan and a put a whole lot of money in there for accidentals," said Guardiola.
Guardiola said that account not only covers prescriptions, but also gives her peace of mind.
"It's nice to know in the back of my head, no matter what else is going on, I know that my kids are taken care of," said Guardiola.
Guardiola said she'll have to rearrange her budget for next year, to make sure all her medical expenses fit together.
The changes will go into effect January 1st.