• Review the list of eligible expenses – A recent survey found that nearly 80 percent of household decision makers had trouble identifying what expenses were eligible for reimbursement under an FSA. There may be a number of items you need to buy or already incurred that you didn't realize are eligible for reimbursement.
• Make sure you have the medications and supplies you need – If you regularly take an over-the-counter or prescription medication, it may be helpful for you to be sure you have an adequate supply on hand. This may also be true for medical supplies, including contact lenses and solution, prescription glasses and even band aids. But be careful to consider the expiration dates of these products when you purchase them.
• Schedule routine appointments – Make sure everyone in your family has received routine check-ups with their physician, dentist and optometrist. If you see a specialty doctor, such as a chiropractor or acupuncturist, make sure you also visit them before the end of the year.
• Get a flu shot and vaccinations – Be sure everyone in your household has gotten a flu shot and is up-to-date with vaccinations.
• Invest in your wellness – Get back on track with your wellness goals now, and you'll save yourself a lot of future medical expenses. Smoking cessation expenses are eligible, as is weight-loss counseling with a letter of medical necessity.
• Log your miles – You can be reimbursed 16.5 cents for mileage to and from eligible medical, dental and vision appointments.

Five health care changes that can impact your FSA contribution for 2011:

• Adult children up to age 26 can now rejoin their parents' health care insurance and qualify as dependents for FSAs so long as they are not offered insurance through their own employer. Therefore, be sure to consider costs for any new family members that you are adding back to your insurance! Some employers are also allowing mid-year increases to FSA contributions.
• Beginning in September 2010, some preventive care will begin to be offered for free. Screening tests for blood pressure, diabetes and cholesterol will no longer require a co-payment. Various cancer screenings (like mammograms and colonoscopies), vaccinations, pre-natal care and routine care for infants and children will also be included in this group. If you were planning to pay for some or all of these screenings out-of-pocket using your FSA in the next year, you may no longer need to budget for them.
• Beginning on Jan. 1, 2011, over-the-counter (OTC) medications except insulin will require a doctor's prescription in order to be reimbursed through an FSA. A recent guidance issued by the IRS also indicated that items that are not medicines or drugs – like crutches, bandages and test kits – are still eligible for FSA reimbursement. Be sure to request necessary prescriptions from your doctors in advance of the January 1 deadline and determine any new costs so that you can budget appropriately. In addition, any OTC items that you won't be able to get a prescription for should be purchased before January 1st instead of waiting until the grace period. Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs) will also follow this same ruling.
• Some health insurers have indicated that they will need to raise premium costs in order to account for the new services they will offer – like coverage for adult children and free preventive care. A recent survey by the Kaiser Family Foundation and Health Research and Educational Trust found that premiums for employer-sponsored health care coverage rose by an average of three percent for families and five percent for individuals. Be sure to check with your health insurer to find out if any of your cost-sharing amounts will change.
• Plan ahead for expensive or elective health procedures because beginning in 2013, there will be a $2,500 cap on annual FSA contributions. If you have a procedure that you have been delaying, like LASIK eye surgery or braces for a child or yourself, this is a great year to set aside money for it in your FSA so that you can get the best deal.

Source: WageWorks