How best to spend cafeteria healthcare funds at my new job? ?

Question

I am just about leave for a new job. I currently have a high deductible plan paired with a health savings account. At my new job, they give us about $400 a month in "cafeteria" funds, meaning we can use them how we want... either to buy insurance (pre-tax) or take the cash (post-tax). I plan to go back on my husband's insurance (for about $80 a month), but I'm unsure how best to use the funds. Would it be best to take the cash, even though I will lose a good chunk to taxes? Can I keep my HSA even though I won't be on a high deductible plan anymore? Or is there another option, like a flex spending account (but I doubt I could use all of it up in a year). Thank you for your help!

Answer 1

You might want to find out what the pre-tax money could be used for (like fertility treatments) before deciding. My HSA plan allows co-pays and such only but I have seen other plans where you can use those funds even for band-aids at the local drug store. I am not a big fan of flex spending accounts unless you have unusually high medical expenses. I don't think they are worth the hassle. Just my $0.02 worth...