Understanding what is and is not covered under FSA and HSA

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are popular ways for individuals to save money tax-free for medical expenses. While both accounts offer tax advantages, it's essential to understand what is and is not covered under each plan.

Here's a breakdown of what you can expect to be covered under FSA and HSA:

What is Covered:

• Prescription medications
• Doctor's office visits
• Medical procedures
• Dental treatments
• Orthodontia
• Eye exams and glasses or contacts

What is Not Covered:

• Over-the-counter medications without a prescription*
• Health club memberships
• Cosmetic procedures
• Elective surgeries
• Non-prescription eyewear
• Non-prescription orthopedic shoes

*Note: Over-the-counter medications may be reimbursable under an FSA with a doctor's prescription.

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are invaluable financial tools that allow you to set aside pre-tax dollars for qualified medical expenses, effectively maximizing your savings. Understanding coverage options is crucial for reaping the full benefits of these accounts.

Here’s a detailed overview of what expenses can be covered under FSAs and HSAs:

What is Covered:

• Prescription medications, allowing you to afford essential drugs without breaking the bank.
• Doctor's office visits, ensuring you have the financial support for routine health check-ups.
• Medical procedures, encompassing surgeries and treatments that may otherwise be financially burdensome.
• Dental treatments, including cleanings and fillings, which contribute to maintaining overall health.
• Orthodontia, recognizing the importance of dental alignment in achieving a healthy smile.
• Eye exams and glasses or contacts, helping you to see the world clearly without financial worries.

What is Not Covered:

• Over-the-counter medications without a prescription*, which may catch many off guard.
• Health club memberships, reminding us that while fitness is crucial, the costs aren’t covered.
• Cosmetic procedures, illustrating the line between medical necessity and aesthetic preference.
• Elective surgeries, which are typically not deemed urgent.
• Non-prescription eyewear, meaning you may need to budget for those stylish frames separately.
• Non-prescription orthopedic shoes, a factor to remember when purchasing foot support.

*Note: Over-the-counter medications may be reimbursable under an FSA with a doctor's prescription, so always check with your plan.