Surprising Eligible Expenses For Your Hsa And Fsa
A health savings account or medical flexible spending account can be used to purchase eligible expenses, and the list of things that are eligible is sizable and growing. For example, as part of a pandemic relief package in March, many over-the-counter products that once required a prescription were permanently reinstated as HSA/FSA eligible expenses.
Check out our episode of our Benefits Buzz podcast as we quiz three new employees on whats HSA and FSA eligible, or keep reading for are five things you may not know you can use your benefits debit card for.
What Is An Fsa
A Flexible Spending Account is a special account you put money into that you use to pay for certain out-of-pocket health care costs.
You dont pay taxes on this money. This means youll save an amount equal to the taxes you would have paid on the money you set aside.
Employers may make contributions to your FSA, but arent required to.
Learn about Flexible Spending Accounts
For details about your companys FSA, including how to sign up, ask your employer.
You use your FSA by submitting a claim to the FSA with proof of the medical expense and a statement that it has not been covered by your plan. You will then receive reimbursement for your costs. Ask your employer about how to use your specific FSA.
Read more about how FSAs work in this IRS publication .
Who Can Qualify For An Fsa
As I mentioned above, a General Purpose FSA is meant to be an alternative for you if you dont qualify for a Health Savings Account.
Its true that both HSAs and FSAs allow people with health insurance to set aside money for designated health expenses.
However, not everyone qualifies for an HSA. If you dont have an High Deductible Health Plan, you are not eligible to open an HSA.
In addition, you cant open an HSA if you have other non-eligible insurance coverage. There are other guidelines that can disqualify you from opening an HSA, too.
For instance, you cant open an HSA if you are on Medicare. As you can see, HSAs serve a limited market.
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Are Vitamins Covered By My Fsa
Have you recently enrolled in a flexible spending account through your employer’s health insurance plan? Congratulations! This is a fantastic way to save money on yearly healthcare expenses, but FSAs come with a bit of learning curve to understand what is/isn’t FSA eligible. While we have plenty of great resources at FSAstore.com like our FSA Learning Center or FSA Eligibility List to help you get started, specific products like vitamins and supplements are items customers ask about frequently.
The Internal Revenue Service sets the rules for FSA eligibility, and every product/service that is considered eligible falls under Internal Revenue code 213:
“The term medical care” means amounts paidfor the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.”
Are vitamins FSA eligible?
Vitamins are generally not FSA eligible. While one could make the argument that taking daily multivitamins can help ward off future health problems, they generally fall outside IRS regulations for FSA eligibility as they are products used to support one’s “general health,” and not used to diagnose, cure, mitigate, treat or prevent a legitimate medical condition.
For questions regarding your FSA and to shop the web’s largest selection of FSA eligible items, visit FSAstore.com! We make it easy for you to maximize the potential of your employee benefits and support the wellness of you and your loved ones.
What Can I Buy With My Fsa Card
If your FSA expiration is nearing and youre wondering, what can I buy with FSA?, the IRS has actually approved thousands of items that are FSA eligible. We wont be able to cover them all here, so youll definitely want to take a look at our FSA Eligible items page. The products range from blood sugar support supplements and body cleanse products to memory support supplements, cough drops, athletic tapes and even pet allergy medicines!
Here are some surprising types of items you might not realize are FSA-eligible, each with a couple of examples. Visit our complete offering of over 800 FSA eligible products.
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Shopping For Health Fsa
As you can see from the lists, many of us use Health FSA-eligible items every day. So, you probably know where to buy them, but does that matter to your FSA plan?
Not at all. Shop for them at the drug store or grocery store at major retailers like Target or Wal-Mart, or a locally-owned market or pharmacy. Just be sure to get a receipt that clearly shows what you purchase with the price you paid then, keep the receipt in your records for the tax year.
General Purpose Fsa Expenses
According to the IRS, FSA eligible expenses must be used to treat or prevent physical or mental illness.
You cant use the money to buy items that are merely beneficial to health, such as a vacation or vitamins.
The list of designated expenses you can use your General Purpose FSA monies on is long. Here are just some of the items you can use General Purpose FSAs for:
- Insurance copays and deductibles
- Bandages and first aid supplies
- Breastfeeding supplies
- Allergy alert and medical alert bracelets
This list may change with IRS modifications to the rules, but its current as of this writing.
To make it easier to shop for these items, you may want to visit an online FSA product retailer such as FSAstore.
Merchants such as FSAstore let you shop online for FSA-eligible items such as bandages and other personal health items.
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Extending Fsa Or Hra Run
With more businesses restricting or limiting hours due to COVID-19, weve heard many participants are struggling to get receipts for submitting claims for reimbursement.To assist with this need, we are suggesting extending your 2019 flexible spending account and/or health reimbursement arrangement claim run-out period. This will provide some breathing room for employees to obtain receipts and better utilize their FSA or HRA benefits over the coming months.
- The ability to extend the deadline applies to the claim run-out period only. We cannot change grace periods.
- You will need to notify your employees of the change.
- PEPM fees will apply, as per our standard contract.
- You will need to complete the plan document amendments for FSA/HRA and add these to your plan documents & summary plan documents
Were in this together and, as always, appreciate your partnership. If you would like to extend the FSA and/or HRA deadline, submit the form on this page.
How To Use An Fsa
FSAs can also be used toward medical equipment and treatments such as:
- Medicines prescribed by a doctor.
- Blood sugar testing supplies.
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Irs Approved Ppe As 213
The IRS issued new guidance clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, are qualified medical expenses if used for the primary purpose of preventing the spread of coronavirus. The announcement applies to expenses incurred on or after January 1, 2020. This will permit these expenses to be paid tax-free with HSAs, Archer MSAs, health FSAs, and HRAs. The announcement also allows employers and plan administrators to amend their plans to include these expenses. Announcement 2021-7 will appear in IRB 2021-15, dated April 12, 2021.
The IRS and the Treasury Department also announced that the 2020 federal income tax filing and payment due date is extended to May 17, 2021. The IRS also clarified that this date is the deadline for making HSA contributions for 2020.
List Of Fsa Eligible Over
On March 27, 2020, President Trump signed into law two permanent changes that will affect the way you use your FSA card. These changes are retroactive to January 1, 2020. One amazing change that has been implemented due to the CARES Act allows Over-The-Counter drugs and medications to be purchased using your FSA account.During the Affordable Care Act, OTC drugs and medications required a prescription from your healthcare provider. This new act removes the requirement for a prescription and puts you in control and relieves the added pressure of going into the doctors office, while they are overwhelmed with other healthcare needs.
Another awesome benefit of the CARES Act is women can utilize their FSA funds to purchase menstrual products. This means the pads, tampons, liners, cups, sponges or similar products can be purchased with pre-tax dollars withheld from your check.
During a transition period, this will require that you submit a claim in order to be reimbursed while merchants are working diligently to get their systems updated with the newly eligible codes.SIGIS provided this list to merchants on April 15, 2020. If you attempt to use your card and are unable to purchase an item, please review the list of eligible products attached to this message to see if it is an eligible item.
If you have any questions, please dont hesitate to contact us, Ameriflex is here to help.
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Dol Cobra Final Rule Impact On Cdh Accounts
The Department of Labor Employee Benefits Security Administration issued a COVID-19 relief rule which extends the time periods in which individuals can submit claims for coverage, elect and pay for COBRA continuation coverage, enroll in group health plan coverage, and file appeals for benefit determinations. The extensions are known as the Outbreak Period which is defined as the period beginning March 1, 2020 and ending 60 days after the date on which the federal government declares the COVID-19 National Emergency has ended. The rule specifies that the Outbreak Period may not be longer than one year.
The extension the rule provides for applies to employee benefit plans subject to ERISA. The following FAQ provides the impact of this new rule on those benefit plans Ameriflex administers.
How does the rule apply to Flexible Spending Accounts and Health Reimbursement Arrangements ?
How does the rule apply to Dependent Care Accounts ?
- The rule only applies to employee benefit plans subject to ERISA. DCAs are not subject to ERISA.
How does the rule apply to Commuter and/or Transit Accounts?
- The rule only applies to employee benefit plans subject to ERISA. Commuter and/or Transit Accounts are not subject to ERISA.
How does the rule apply to Direct Bill or Retiree Plans?
How does the rule apply to State Continuation coverage?
Other Home Medical Devices
Blood pressure monitors aren’t the only at-home medical devices you can purchase with your FSA. You can also buy oximeters, stethoscopes, home medical tests, glucose tests and monitors, CPAP accessories, medical alert devices, emergency equipment such as a defibrillator, inhalers and respiratory masks.
In addition to home medical devices, you can also buy items like acupressure pads and foam rollers with your FSA card.
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Limited Purpose Fsa Eligible Expenses
- Limited Purpose FSA Eligible Expenses Table
Limited-Purpose FSA Eligible Expenses
You can use your Limited-Purpose FSA to pay for a variety of dental and vision care products and services for you, your spouse, and your dependents. The IRS determines which expenses are eligible for reimbursement. You can view a comprehensive list of eligible expenses by logging into your WageWorks account.
Keep Your Receipts
A good rule of thumb is to keep receipts and other supporting documentation related to your expenses and reimbursement requests. The IRS may request itemized receipts to verify select expenses. Credit card receipts, canceled checks, and balance forward statements do not meet the requirements for acceptable documentation.
Search Limited Purpose FSA Eligible Expenses Table
|Braille books and magazines|
|CBD Oil products|
|Dental, oral, and teething pain products|
|Dentures, bridges, etc.|
|Eye drops and treatments|
|Eye surgery or treatment to correct vision|
|Laser eye surgery|
|Occlusal guards to prevent teeth grinding|
|Sales tax, shipping and handling fees|
|Student health fees for dental services|
|Student health fees for vision services|
|Toothpaste, toothbrush, floss, etc.|
|Transportation, parking and related travel expenses|
Irs Issues Guidance On Fsas Hdhps Mid
In response to the unexpected challenges Americans have faced due to COVID-19, the IRS announced temporary changes to section 125 plans. These changes apply to flexible spending accounts , dependent care accounts , individual coverage HRAs , and high deductible health plans . It is up to the employer to decide whether to allow these changes.
Heres whats changing: The temporary changes issued under Notice 2020-29 and Notice 2020-33 include: FSA & DCA Grace Period Extension An employer, although not required to do so, may amend their plans to allow employees to use unused amounts in their FSAs and DCAs to pay for expenses incurred before December 31, 2020 thereby extending the grace period a full year. The extension for incurring claims is available to both cafeteria plans that have a grace period and plans that also provide a carryover. Note: This extension may impact an individuals HSA eligibility during the extended period.
Mid-Year FSA & DCA Election Changes An employer, although not required to do so, may amend its plan to allow employees to revoke an election, make a new election, or increase or decrease an election to an FSA or DCA.
FSA Carryover The maximum amount of unused funds that may be carried over in FSA increased from $500 to $550. Employers must adopt a plan amendment by December 31, 2021, and this can be retroactive to the 2020 plan year.
ICHRA Reimbursements Allows ICHRA to treat healthcare premiums as incurred on:
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An Important Note About Purchasing Fsa Eligible Items
If you have an FSA, you can access the full amount of your annual contribution on the first day of the plan year. For example, if you elect $2,000, and on day one you incur $2,000 of FSA eligible expenses, you can use all of your FSA money to pay for it, even though the money has not fully accrued in the account yet. Throughout the rest of the year, deductions will still come at the same rate from each paycheck. However, the available FSA balance will be at zero once all the funds are spent.
For a complete list of FSA eligible expenses, refer to IRS Publication 502 or consult your FSA administrator. If youre interested in participating in an FSA or want more information about how the accounts work, contact your companys HR department. Learn more about 2021 FSA contribution limits.
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A Comprehensive List Of Eligible And Ineligible Expenses
Health Reimbursement Accounts , Health Savings Accounts , and Flexible Spending Accounts can be great cost-savings tools. You can use them to reimburse yourself for eligible health care, dental, and dependent care expenses. But it’s important to know which expenses can be reimbursed.
Its also important to keep a record of the expenses you pay with your HSA, HRA, or FSA in case Cigna asks you to prove that an expense was eligible for reimbursement from your account, or in case you are audited by the IRS. Examples of records you should keep include: receipts, Explanation of Benefits , medical diagnosis/physician diagnosis letters, and prescriptions.
Important update: Due to the passage of the CARES Act, starting January 1, 2020 the following items are eligible:
- Menstrual care/feminine hygiene products are now reimbursable.
- Over-the-counter drugs no longer require a prescription to be reimbursed.
Please note that the list is subject to change based on regulations, revenue rulings, and case law. The list is intended only as a general guideline for covered expenses. All items on the list may be subject to further restriction. An employer may limit which expenses are allowable under their FSA or HRA plan offering.*
Flexible Spending Account & Health Savings Account Store At Amazoncom
At the Amazon.com FSA and HSA store, we take the guesswork out of shopping for FSA-eligible items by providing a large selection of eligible products with the brand names you trust and a few more that we are happy to help you discover. You are just a few clicks away from saving time and money with each order.
Dont let your FSA dollars go to waste: check out our vast supply of health and medical supplies like heating pads, hearing aids, knee braces, and first aid supplies, as well as products for flu & allergy, digestion, indigestion, nausea, and just about everything else you might need to stay healthy year-round. Stocking up your medicine cabinet is just a few clicks away.