Background: my company recently switched their healthcare options. They didn’t tell us during open enrollment that the plan year end was in a couple months and we would do open enrollment again for the new plan year then. So without knowing that, I signed up for the max FSA and now I have until the end of the month to spend about $700 (I just got rx glasses and sunglasses and that’s what’s left minus the $550 rollover allowed).
Question: How do FSA debit card charges work? Like how is it decided electronically if something is an eligible healthcare charge or not? I have a dermatologist that also offers cosmetic stuff like Botox etc. when they swipe my card how does the healthcare provider know if they’re charging me something FSA eligible or not?
TLDR: I have min $700 to burn in my FSA. I’m thinking of getting something cosmetic at my dermatologist, how would fsa card determine if it’s eligible if the office offers both eligible and ineligible services?
Thank you!
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