More shopping programs are popping in unlikely places

I just received an email from my Health Savings Account company promoting a new shopping rebate (or discount, depending on how you read it) program.  As with similar "shopping portals," HSA Bank, my provider, is offering cash back, if you shop with one of their partners, in their MyHSA Rewards Program.

However, instead of just getting cash back via PayPal, or a written check, this program will transfer your rebates into your linked HSA account with them which can be used on a pre-tax basis for health care purchases.  While that might not excite some given that HSA accounts are going to be radically modified in January, it's another savings tool that can help. 

Of course, you can also choose to use another shopping rebate program, similar to ones discussed on this site, such as Mr. Rebates, Monkey Jar, or Cashbaq, because the partners are pretty much the same.  Their principal differences are typically how much of a rebate, usually a percentage of the total sale, and how often they will pay your earnings.

Bottom line: before you shop anywhere online, check to see if you can earn some cash back with your purchase.  Depending on your need for the money, decide if it's more beneficial to get the cash now, or build it up for an expense, such as health care, later on.

Some provisions of the new health care law will impact everyone

The passage of the Patient Protection and Affordable Care Act this past Mach means that some additional changes will be made to health plan offerings that may impact your health care budget.  One, a favorite of mine, is the wide variety of uses for Flexible Spending and Health Savings Account funds.  From a post I wrote previously, I outlined the advantages and disadvantages of these accounts.  However, regardless of what type in which you may contribute, beginning in January 2011, the eligible usage of these funds won't be as broad as in the past.

From the revised IRS guidelines, FSAs and HSAs funds will no longer be eligible for purchasing certain over-the-counter medicines and remedies.  Instead, consumers will largely only be able to use these funds for prescriptions, co-pays, and other eligible medical-related purchases.  It's a bummer, as even cold medication was covered previously.  More so, pharmacies may fill a bit of a pinch as well on these changes.  Whereas in the past a consumer may be more willing to buy a remedy for a cold, as an example, rather than wait it out, now, without being able to use pre-tax dollars for medications, this restriction may just discourage some from seeking treatment.

With open enrollment around the corner, keep in mind that your ability to use FSAs/HSAs may be more limited than in the past, thus, don't "over-fund" your contributions.  Try to estimate your co-pays and prescription drug needs as accurately as possible to prevent wasting money.

How To Take Advantage Of Open Benefits Enrollment

Just a reminder that it might be the time (only twice a year, unless a major life event happens) for you to review your health care and other benefits.  This year, a growing theme is more consumer driven health plans, that is you, the consumer, taking more control of your health care costs vice your employer.  We all know that the subject of health care coverage is a major headache, and in debate in Congress.  Until that is sorted out, you can do a few things to lower your costs:

1) If you are using a traditional plan, that costs more per month, but has lower out of pocket costs, be sure to take advantage of the Flexible Spending Account (FSA) option.  These allow you to set aside pre-tax dollars for expenses like doctor's co-pays, contact lenses, and other other IRS-approved items. 

2) Consider a high (er) deductible health care plan that comes with a Health Savings or Health Reimbursement Account.  These are designed for you to pay lower premiums monthly, but face a higher threshold of cost in the event that you have medical needs beyond the routine.  Good thing is that many plans still cover preventative care visits- gratis.  Look for a Health Savings Account (HSA) plan among your options.  The difference is that the Health Reimbursement Account (HRA) belongs to your employer (because ideally they are contributing along with you to offset health care costs) and must be sacrificed when you leave your firm, although it still grows year by year, just like the Health Savings Account.  The Health Savings Account is portable, meaning, you can take it with you, and it grows year to year as well. And, hopefully your employer is contributing to that as well.  It saves them money.  You can contribute pre-tax dollars as well, up to statutory limits, which vary by age.

For more information on these alternative plans, especially about the types of medical costs that can be covered with HSAs, HRAs, and FSAs, visit the IRS.  (It's a surprisingly straightforward document and worth a look.)


Bottom line: carefully research your options and don't just take your default choice out of laziness.  There's money to be saved.  Ask your company's HR practitioner for help, too.  Some plans are clearly better for than others.

Twitter Savings

Everyone is getting on the Twitter-bus now. Celebrities, the Obama administration staff, anyone in the mainstream media. What some consumers might not know is that companies are taking notice. Recently, United Airlines ran a promotion where one could receive a 1,500 mile bonus, free, by registering at the United Airlines twitter site. I believe this promotion is over, but why not register with them anyway? According to a friend of mine, UAL was running something called Tweet Fares or Twares recently, offering discounts for booking flights within a certain time frame.

Expect other companies, not just airlines, to get the Twitter-bug.

Savings Accounts

If you have extra cash lying around, make sure you are earning as much as you can in your savings account. Checkout Bankrate http://bankrate.com/ to compare rates.