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Unformatted text preview: 8. Flexible Spending Accounts Will Become Less Flexible u ct ed fr om your paycheck t o go t oward incr eased M edicar e payr oll t axes. I n addit ion t o higher payr oll t axes yo Three years from now, f lexible spending accounts (FSAs) will have lower contribution limi ts – meaning you won’t be able to have as much money deducted f rom your paycheck pre-tax and deposited into an FSA for medical expenses as is currently allowed. The new maximum amount allowed will be $2,500. In addition, fewer expenses will qualify for FSA spending. For example, you will no longer be able to use your FSA to help defray the cost of over-the-counter drugs. 9. I f You Ea rn Mo re, You’ll Pay More 10. Medicare May Cover Mo re or Less of Your Expenses Starting this year, if Medicare is your primary form of health insurance you will no longer have to pay for preventive care such as an annual physical, screenings for t reatable conditions or routine laboratory work. In addition, you will get a $250 check from the federal government to help pay for prescription drugs currently not covered as a result of the Medicare Part D “doughnut hole”. However, if you are a high-income individual or couple (making more than $85,00 i ndividually or $170,000 jointly), your prescription drug subsidy will be reduced. In addition, if you are one of the more than 10 million people currently enrolled in a Medicare Advantage plan you may be facing higher premiums because your i nsurance company’s subsidy from the federal government is going to be d ramatically reduced. 3 c766bcbf7c170cf37b438d4e80e04314f62886f5 ...
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This note was uploaded on 04/26/2010 for the course COMP APP 1 6025 taught by Professor Bittman during the Spring '10 term at James Madison University.
- Spring '10