HSA Guide
Understanding what is and is not covered under FSA and HSA
Published August 7, 2024
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Get the appHealth 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.