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Prescription Drugs Costs - Cut by FSA Un-reimbursed costs for prescription drugs are an eligible flexible spending account expense. Your left-over cost will vary by the type of prescription drug coverage your insurance carrier provides. Prescription drug co pays, and co-insurance may generate a significant amount of on-going un-reimbursed medical expenses. Growing families who are undergoing infertility treatments need to know the rules backwards and forwards. Many fertility drugs and other infertility treatments are often not covered at all by health insurance plans. As a self-pay item, tax savings are your best way to preserve your resources. Prescription drugs are one of the most commonly used items for a flexible spending account. Many drugs are maintenance items. You take the prescribed drugs for months or years at a time. This means your expenses are predictable - a key consideration given the FSA use it or lose it rule.
A Heathcare Flexible Spending Account allows you to use pre-tax dollars to help reduce these costs. Some important terms will help you determine and project your amount of un-reimbursed prescription drug expenses are defined below on this page:
Prescription Drug FormulariesPrescription drug formularies are an important component to flexible spending eligible expenses. Your healthcare plan will publish a formulary: a list of prescription drugs that your healthcare providers prefers you to use. The design of a formulary is to steer you towards the prescription drug protocol most likely to result in a successful outcome, at the lowest cost.
A formulary may also include step therapy. A step therapy approach often starts with a less expensive drug option. If effective, that option is continued. If not you may move on to a second more expensive drug, etc. A prescription drug formulary is often broken down into tiers base upon co-pay percentages:
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