What Can I Buy with My HSA and FSA Funds?

Health saving and flexible spending accounts are a great way to save money for medical expenses that aren’t covered by your health insurance. But figuring out where you can spend your hard-earned savings can be confusing. Do these funds only help with copays and premiums, or can you use your money for other purchases too?

Below, we’ll dive into the details of health-related savings accounts and discover where you can spend your contributions.

Three things to keep in mind about FSA and HSA-qualified expenses.

Both health savings accounts (HSA) and flexible spending accounts (FSA) can help you save tax-free money for healthcare expenses. But there are a few key details that can affect what you’re able to spend your savings on.

1. The list of HSA or FSA-qualified purchases is dictated by federal regulations and rulings and is, therefore, subject to change. The IRS keeps track of these FSA and HSA-eligible expenses, so you can always visit their website or use their free search tool to check if the item or service you bought is currently covered.

2. If you have an employer-owned account, like an FSA or HRA (health reimbursement account), your employer may have restrictions on which expenses they’ll allow under their plan. So, before you make a health-related purchase, you may want to revisit your plan and search for any specific details regarding expenses.

3. Remember to keep records of the purchases you make and expenses you pay with your HSA or FSA funds. You may be asked for proof that a purchase was eligible for reimbursement by your account manager or the IRS. It can be helpful to keep receipts, related medical records, or any other documentation you find applicable.

What are HSA and FSA-eligible items?

Typically, HSA and FSA funds cover a wide range of expenses. You can use your savings to pay for in-person medical procedures and services, including clinic visit copays, dental work, and ambulance rides. But you can also spend your funds on HSA/FSA-qualified health items, like hearing aids, bandages, menstrual products and more.^{1, 2} You may be surprised to learn just how many HSA and FSA-eligible items are on the market. Read on below to learn about some of your options for spending your funds.

Health monitoring and testing.

Many devices you may need around the home for health management are FSA/HSA-eligible. Items can be as simple as a bathroom scale for weight maintenance or a thermometer for checking fevers or fertility cycles. You can also find eligible products for gathering health data for specific conditions. Qualified heart rate devices and blood pressure monitors can help you track and evaluate your cardiovascular health.

Pain management devices.

Chronic pain is never easy, but thankfully there are many HSA/FSA-eligible items to help you manage your pain and save money. For muscular aches and pain, you can find qualified heating pads to warm your body and reduce tension. Or, if you need more complex relief, you can explore eligible TENs units and muscle stimulators that utilize electrical impulses to relax muscles. You can also find authorized compression sleeves and braces if you suffer from painful swelling and need help increasing blood flow. Just remember to check that the device you want is eligible under your specific plan.

Home health care.

Are there items you need to ensure your health and safety at home? Good news — many of them are HSA/FSA-reimbursable. You can find eligible mobility aids like walkers, canes, and wheelchairs to help you safely navigate your home. And a qualified medical alert device can provide you with access to professional help during an unexpected fall. If you need extra support in the bathroom, FSA and HSA accounts may cover items like grab bars, raised toilet seats, shower chairs, and other bathroom safety devices. You can even use your savings to invest in certain baby monitors to help ensure your child’s safety and security.

Getting the most out of your HSA and FSA.

Flexible spending and health savings accounts are a great way to prepare for out-of-pocket health costs. Your untaxed FSA and HSA investments can help you pay for medical exams and services or reduce your costs for assistive health products. However you decide to use your savings, learning more about which items are IRS-qualified and eligible under your specific plan can help you make informed decisions for your healthcare needs.

References.

1. “Health Savings Accounts and Other Tax-Favored Health Plans.” U.S. Department of the Treasury, Internal Revenue Service. February 1, 2023. https://www.irs.gov/publications/p969#en_US_2021_publink1000204185.

2. “Medical and Dental Expenses.” U.S. Department of the Treasury, Internal Revenue Service. February 7, 2023. https://www.irs.gov/publications/p502.

Additional information:

These statements and any information contained herein are intended for educational purposes only and are not meant to substitute for medical care or to prescribe treatment for any specific health condition. Carefully review product labels for instructions and important safety information and consider consulting with a health care professional regarding your use of health and wellness products.