Participating in a health FSA or HSA comes with a ton of advantages that can improve your health and financial well-being. In addition to the tax savings, most people know that you can use these accounts for everyday healthcare expenses such as prescription and over-the-counter medications, co-pays and deductibles, and mobility devices like crutches, wheelchairs, and walking boots.
However, the usefulness of these employer-sponsored accounts goes beyond routine healthcare items and services. Let’s look at some creative ways to use your FSA and HSA in order to make the most of your benefit dollars.
Creative Ways to Use Your FSA and HSA
The following items and services are suggestions for maximizing your tax-advantaged benefit account for you and your dependents. You can view a full list of eligible healthcare expenses here.
Alternative Therapies
Conventional healthcare treatments and therapies are an important part of an individual’s health plan. However, physicians may also recommend using alternative therapies as a complement to more traditional methods. These items and services can be beneficial for relieving stress, muscle and joint pain, headaches, and other ailments.
Many people are unaware that HSAs and FSAs can be used for alternative therapies such as acupuncture, chiropractic care, and even massage therapy if prescribed by a doctor. Your account can also cover acupressure devices, homeopathic treatments, and reiki (energy healing treatment).
Fitness Programs and Equipment
Investing in your physical health can also be a smart use of HSA and FSA funds. Exercising regularly is the most important thing you can do for your health. Regular exercise helps people lose weight, control their appetite, enhance their mood, and improve sleep. The long-term benefits include reducing the risk of heart disease, stroke, diabetes, dementia, depression, and many forms of cancer.
Some plans cover gym memberships, fitness classes, and even home exercise equipment like treadmills or weights with a letter of medical necessity from a healthcare professional. Keep in mind that exercise equipment must be used to treat a specific medical condition to be considered eligible for reimbursement under an FSA or HSA.
Preventive Health Measures
Many people think about their healthcare needs when they need treatment. However, preventive care may be just as important. Being proactive can improve your long-term health and quality of life and save you money in the long run.
An FSA or HSA can cover a variety of preventative services such as vaccines, health screenings, and smoking cessation programs. You can also use your account for products like allergy medications, antacids, and sunscreen.
Mental Health Services
Mental wellness is just as important as physical wellness. One in 5 U.S. adults and 1 in 6 youth (ages 6-17) experience mental illness each year. Getting treated for mental health can have a ripple effect by reducing other seemingly unrelated illnesses, such as heart disease, obesity, diabetes, and substance abuse.
HSAs and FSAs can be used to pay for therapy sessions, counseling, and psychiatric care. Additionally, some plans cover stress management programs and mindfulness workshops.
Family Planning
Welcoming a new baby can be exciting and nerve-wracking at the same time. Not having to worry about how to cover those family planning costs can relieve a lot of stress and anxiety.
If you’re planning to start or expand your family, HSAs and FSAs are valuable resources that can be used for many maternal and baby needs.
These accounts can cover OBGYN, primary care and other doctor visits (including midwife expenses), prenatal vitamins, fertility tests and treatments, pregnancy aids, pregnancy tests, and more. Eligible post-partum expenses include breastfeeding supplies, baby monitors, OTC ointments and creams, and other items for your baby’s health.
Vision and Dental Care
One common use for an FSA or HSA is routine dental and eye care. Eligible expenses include cleanings, checkups, fillings and root canals, and prescription glasses and contact lenses, among other routine services.
These accounts become even more valuable when you need more extensive work, which is often more costly. This includes corrective eye surgery (like LASIK and PRK), orthodontics, and even some semi-cosmetic dental procedures, such as crowns or implants, if they are deemed medically necessary.
Travel for Medical Care
Did you know that some travel expenses can be covered by your FSA or HSA? It’s true.
If you need to travel for medical treatment for yourself or a dependent, your HSA or FSA can help cover the costs. This includes transportation (including ambulance services), lodging, and meals if the primary purpose of the trip is to receive medical care. The IRS publishes standard mileage rates to help offset the cost of fuel.
Your health and financial well-being are important! You can make the most of your HSA and FSA funds by thinking creatively and exploring all available options. Make sure you keep your documentation, including itemized receipts, prescriptions, and Letters of Medical Necessity for your claim submission.
Please consult your HR department or benefits administrator for additional information.
Beneliance has provided Arkansas employers with comprehensive third-party employee benefits administration and compliance services since 1996. Please enter your email (above right) to receive notifications about new blog articles as they are published.
