Use It or Lose It: Year-End Insurance, FSA/HSA, and Benefits To-Dos

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Use It or Lose It: Year-End Insurance, FSA/HSA, and Benefits To-Dos
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Use It or Lose It: Year-End Insurance, FSA/HSA, and Benefits To-Dos

The end of the year always sneaks up fast—and with it comes a deadline many people forget: your health benefits reset on January 1. Whether you have insurance through work, a marketplace plan, or use an FSA or HSA, this is your annual reminder to check what’s left on the table before it disappears.

If you’ve met your deductible or have flexible spending dollars still available, now’s the time to use them wisely. Here’s how to make the most of what you’ve already paid for, before it’s gone for good.

1. Check Your Remaining Insurance Benefits

Most insurance plans reset annually, meaning your deductible, copays, and covered visits start over each January. If you’ve already met your deductible, scheduling medical visits or procedures now can save you money.

Consider using your remaining coverage for:

  • Annual physicals or preventive screenings
  • Vision or dental checkups
  • Specialist visits or follow-ups you’ve delayed
  • Mental health counseling sessions
  • Diagnostic tests your doctor recommended but you postponed

If you’re due for labs, imaging, or a routine checkup, doing it before December 31 could mean paying little or nothing out of pocket.

2. Spend Down Your FSA Before It Expires

If you have a Flexible Spending Account (FSA), those funds typically expire at the end of the year, unless your employer offers a short grace period or rollover option. Check your balance now and plan how to use it.

FSA-eligible expenses may include:

  • Prescription medications and copays
  • Eyeglasses, contact lenses, and eye exams
  • Dental cleanings, fillings, or orthodontics
  • Over-the-counter medications
  • Medical devices (blood pressure cuffs, glucose monitors, thermometers)
  • Sunscreen, first aid kits, and menstrual care products

💡 Tip: Many pharmacies and online stores have FSA “shops” where you can easily see which items qualify.

3. Maximize Your HSA Contributions

If you have a Health Savings Account (HSA), you have a bit more flexibility; funds roll over year to year. But don’t miss your opportunity to maximize contributions before December 31 to reduce your taxable income.

For 2025, the IRS contribution limits are:

  • $4,150 for individuals
  • $8,300 for families
  • $1,000 additional “catch-up” contribution if you’re age 55 or older (IRS)

Your HSA can also be used for long-term healthcare costs, including future medical expenses in retirement, so topping it up now is a smart financial move.

4. Review Your Prescriptions and Refills

Before the new year, review your medication list and check your refill schedule. Some insurance plans change formularies (covered drugs) or pricing tiers in January.

End-of-year medication checklist:

  • Request refills for maintenance meds
  • Ask your doctor for a 90-day supply if possible
  • Check for new generic versions that may save money
  • Use FSA/HSA funds for out-of-pocket medication costs

If you use eye drops, inhalers, or other recurring prescriptions, this is also the time to make sure you’re stocked up for early 2026.

5. Use Preventive and Vision Benefits You’ve Earned

Preventive visits and screenings are often covered 100% by insurance but can go unused. Before December 31:

  • Book your annual eye exam (especially if you have glaucoma, diabetes, or CKD)
  • Schedule mammograms, colonoscopies, or cholesterol tests as needed
  • Get your annual flu shot or vaccinations

If you wear glasses or contacts, don’t forget: your FSA or vision benefits can cover new frames, lenses, or prescription sunglasses, another “use it or lose it” perk.

6. Reevaluate Your Plan for Next Year

Open enrollment season (typically November–December) is the perfect time to compare plans and make sure your coverage still fits your needs. Consider how often you visit specialists, your medication costs, and whether you anticipate new procedures in 2026.

You can compare marketplace plans at HealthCare.gov or through your employer’s benefits portal.

7. Plan Ahead for January: Keep the Momentum

Once you’ve used up this year’s benefits, set yourself up for success in the new year:

  • Schedule next year’s preventive appointments in advance
  • Set reminders to check your FSA/HSA balance quarterly

Sources & References

  1. U.S. Internal Revenue Service (IRS) – Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans
    https://www.irs.gov/publications/p969

  2. HealthCare.gov – Marketplace Open Enrollment and Coverage Options
    https://www.healthcare.gov/

  3. Centers for Medicare & Medicaid Services (CMS) – Preventive Health Services Covered by Marketplace Plans
    https://www.cms.gov/

  4. U.S. Department of Labor – Flexible Spending Accounts and Employee Benefit FAQs
    https://www.dol.gov/general/topic/health-plans/fsa

  5. American Academy of Ophthalmology (AAO) – Eye Exams and Vision Coverage
    https://www.aao.org/eye-health

 

Disclaimer: AI was used to assist in the creation of this content. The information provided here is for educational and informational use only and is not a substitute for professional medical advice. Always consult your physician or care team regarding your individual health needs.