Why do we forfeit unused funds in our "flex" spending accounts? Is it not our money?

Flex spending accounts are used to collect funds to be spent on medical bills. They save us from paying some income tax. However, if left unspent, the funds are lost. Why? Who should claim this money if I put it there?

You've gotten the right answer already - "because that's the rule". But, there is an interesting parallel program in health insurance called an HSA plan.

With an HSA plan, you set aside money in addition to the premiums you pay. That money goes into your personal Health Savings Account (hence, HSA) and stays there until you use it. Like a flex spending plan, you get the tax deduction when you put the money in. UNLIKE the flex account, if you don't spend it, you KEEP it. It rolls over to next year and then you can also add more. The only "catch" is that you must spend it on health care or you suffer a penalty. If you have consistently put in more than you need, when you turn 65 you can pull the money out for retirement without penalty. To learn about this kind of health insurance and what it might cost for you, go to http://www.wavehelp.com/health-insurance... and click on through to "Get a Quote". Then take a look at SaveRight HSA PPO or the more robust OneDeductible PPO.
Best wishes.

Like many government regulations, the results do not always make sense. I suspect the rule is there to force you to budget exactly what you need so that you do not take advantage of the tax break.

Why? Because it's the way it is. And you knew that before you gave them one penny.

This a trade.

For not being taxed on this money, you risk losing any money that isn't spent.

So, the trick is to NEVER put more money in the fund then you KNOW you will pay out. Never. If you unable to KNOW the costs, then don't fund it...as it seems you have discovered, you will lose more then you gain from the tax benefit.

The reason you can't keep the excess is because it wasn't taxed...I suppose they could refund it to you and tax you but that is a lot of administrative paperwork for what is a benefit to you.

Like all things in life...it requires planning.