Author Topic: Baby on the way... Open Enrollment just started.  (Read 2289 times)

Easye418

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Baby on the way... Open Enrollment just started.
« on: November 08, 2016, 08:25:18 AM »
Just found out we are pregnant (yay!) and open enrollment just started today.

My wife and I are on my insurance.  I presume I should open a Flexible Spending Account to cover all the upcoming bills in 2017? Baby is due in July.  Do I need a Healthcare FSA or Dependent Care FSA to cover the cost of the newborn medical bills?

Going with BCBS PPO, $850 indiv deduc/ $3,750 OOPM Indiv.

Anything else I should be looking to do/ missing out on/ need to prepare for?

Thanks!

Easye418

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Re: Baby on the way... Open Enrollment just started.
« Reply #1 on: November 08, 2016, 08:44:22 AM »
The dependent care FSA is for daycare expenses.  If you plan to use a daycare (center based or home based) you should figure how much you would spend in 2017 and put that amount in the dependent care FSA.  This one is not good for medical bills, and I don't think you can use it to pay for a relative to watch the baby.  They usually require receipts to get your money back.  You can put up to 5k per year in this account and will lose anything not used so be careful not to over fund it.

The medical FSA is for un-reimbursed medical bills.  I don't use one - will let someone else comment there.

Also note that you will very likely get a bonus open enrollment due to the life changing event in July.  Verify with your employer and keep this in mind.

Good point on bonus open enrollment.  Just checked my booklet, "change in my dependents" is covered.

I figure my wife will be off for 2-2.5 months after baby is out, combo of using 5 weeks 100% paid time off she gets as well as I think we will burn her PTO (maximum 240 hours, 20 days, she works 12 hour shifts).  So that will lead us up until about this time.  I am not sure I want to open a daycare FSA just yet.  If I do, I will do it when I get the extra enrollment.

Thank you for the reply.

Frugal716

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Re: Baby on the way... Open Enrollment just started.
« Reply #2 on: November 08, 2016, 08:59:22 AM »
Your dependent care FSA may also consider a change in daycare expense as a qualifying event for dependent care FSA open enrollment.

In our case we had family cover daycare (Free!!!) for the first few months after our daughter was born, then moved on to a formal daycare. Usually this is not an enrollment event, however going from free daycare to paid daycare opened up the dependent care FSA enrollment because the cost of care changed. This means changing daycare, enrolling in daycare, or a change in rates could all allow for enrollment, no need to decide now.

 This seems to vary by employer, so I would check first.

Easye418

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Re: Baby on the way... Open Enrollment just started.
« Reply #3 on: November 08, 2016, 09:15:29 AM »
Your dependent care FSA may also consider a change in daycare expense as a qualifying event for dependent care FSA open enrollment.

In our case we had family cover daycare (Free!!!) for the first few months after our daughter was born, then moved on to a formal daycare. Usually this is not an enrollment event, however going from free daycare to paid daycare opened up the dependent care FSA enrollment because the cost of care changed. This means changing daycare, enrolling in daycare, or a change in rates could all allow for enrollment, no need to decide now.

 This seems to vary by employer, so I would check first.

Unfortunately, no free daycare for us.  :(

I just did some google searching, it looks like out of pocket medical expenses for the baby at delivery would be something I could use my FSA on.

FLBiker

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Re: Baby on the way... Open Enrollment just started.
« Reply #4 on: November 08, 2016, 11:00:28 AM »
I'd also check out how short-term disability works @ your company.  For us, childbirth was excluded, but I know some folks who used it to get paid leave.

letired

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Re: Baby on the way... Open Enrollment just started.
« Reply #5 on: November 08, 2016, 11:41:04 AM »
The details vary between employers, but check on the grace period and any rollover available for your FSA plan. My plan allows a $500 roll over year to year and a 4 month grace period. IE I have until April 2017 to spend 2016 FSA money before losing it, and if the 2016 balance after April is $500 or less, I get to keep that money as well. This can help inform your funding decisions for the FSA.

Easye418

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Re: Baby on the way... Open Enrollment just started.
« Reply #6 on: November 08, 2016, 11:52:38 AM »
I'd also check out how short-term disability works @ your company.  For us, childbirth was excluded, but I know some folks who used it to get paid leave.

Do you buy short term disability with my wife's employer or with my employer for my wife?

If my wife needed to buy it, then that boat has sailed.