LAS VEGAS (KTNV) — Health Savings Accounts and Flexible Spending Accounts are powerful tools for saving on healthcare costs, but many people may not realize just how versatile they can be.
From medical bills to everyday health items, these accounts can help cover much more than expected, and with the FSA deadline approaching, now is the time to act.
For DoorDash driver Johnathan Riggs, the rising cost of small purchases like over-the-counter medicine quickly adds up.
“It ranges from $15 - $20,” Riggs said. “I just bought some pain medicine the other day for $6.99, and that was the cheap version.”
Riggs wishes he had enrolled in an FSA or HSA through his employer when he had the chance.
“I would like to know more about it,” he said.
Both accounts allow you to set aside pre-tax dollars for medical expenses. FSAs, however, have a "use it or lose it" policy, meaning funds must be spent by the end of the plan year or a grace period, often Dec. 31.
“Use it or lose it,” said Cat Torres, a health and welfare consultant with Sentinel Group.
Torres explained that many people are unaware of just how many items are FSA or HSA eligible.
“Check out the FSA website; they have a section called ‘surprisingly eligible,’” Torres said.
From arthritis medications to LED facemasks for acne, thermometers, sunscreen, and even foot massagers, the list of eligible items may surprise you. Shoppers can use these accounts at popular retailers like Amazon, Walmart, Target, and Costco.
However, Torres cautions that not all purchases will qualify, especially some store-brand items, even if medically related.
“Most plans come with a card, and that card is specially programmed to only allow FSA and HSA-approved transactions,” she explained. “If you go to Target and buy aspirin and a pack of gum, and you swipe your FSA card, it will only approve the portion of the cost for FSA-approved items.”
Shoppers Kayla and Kyle Parnell, who were shopping for insoles at Walgreens, were surprised to learn that their FSA or HSA could help cover the cost of such purchases.
“$25—it’s pretty expensive,” said Kayla Parnell. She added that they plan to ask their employer about enrolling during the next open enrollment period.
With the FSA deadline quickly approaching, Torres recommends consumers do their research to maximize their benefits. Using the FSA store website, looking for FSA-eligible tags on price tags in stores, and checking the list of approved items can save time and money.
“Everybody is going to the doctor; everybody is going to buy Tylenol or feminine hygiene products,” Torres said. “Why not use your pre-tax dollars for it?”
To visit FSA store, click here.
