Matt Breunig on HSA & FSA: The Welfare System Stole $2k From Me
These US healthcare systems are effectively scams. Yes in theory they can save you money, however in theory there is no difference between theory and practice, while in practice there is.
Weird FSA trick tho; if you borrow from an FSA, spend it in full in, say… the first month of the year, quit your job. You never have to pay it back.
Happened to me by accident. I started a plan to pay for LASIK. Got it. Had no way of knowing back then I’d be made another job offer. Took it and expected to get dinged with the entire amount. Nope. FSA plan eats the loss.
So all you gotta do is plan very specifically months ahead and triple down by orchestrating a job change all to save $2k :) easy.
It's the analog to how the industry lobbies to get preferential tax treatments for these accounts. 99% of the time your employer or the insurer keeps money at the end of the year. If you're smart about when you leave your employer though(leave after exhausting your FSA early in the year), or have advance notice of it, you can walk away and beat the game.