How to Use HSA and FSA Dollars for Healthcare

What Are HSA and FSA Dollars?

Healthcare costs can add up quickly, but your HSA and FSA dollars can help you pay for eligible expenses using tax-advantaged money.

A Health Savings Account (HSA) allows you to set aside money for qualified medical expenses, typically through contributions from your paycheck or employer. To contribute, you must meet IRS eligibility requirements, including having an HSA-eligible high-deductible health plan. Your balance rolls over year to year, and the account stays with you if you change jobs.

A Flexible Spending Account (FSA) lets you set aside money from your paycheck before taxes to cover qualified healthcare expenses. FSAs are offered through employers and generally have a use-it-or-lose-it rule, although some plans allow a limited carryover or grace period.

Both accounts can help reduce your out-of-pocket healthcare costs while making your healthcare dollars go further.

How to Use Your HSA and FSA Dollars

You can use HSA and FSA funds for many eligible medical expenses, including:

• Doctor visits and medical care: Eligible primary care visits, specialist appointments, and other medical services.
• Lab work and diagnostic testing: Qualified blood tests, diagnostic screenings, and other medically necessary testing.
• Prescription medications: Eligible prescription drugs and certain over-the-counter medications.
• Dental and vision care: Dental cleanings, eligible treatments, eye exams, prescription glasses, and contact lenses.
• Medical supplies: Eligible first-aid supplies, thermometers, blood glucose monitors, and other qualifying equipment.
• Mental health care: Eligible therapy and other qualified mental health services.
• Preventive and reproductive health: Certain screenings, menstrual care products, and eligible reproductive health services.

What about wellness expenses? Not every service that supports your health qualifies. General wellness programs, gym memberships, supplements, and nutrition services may have additional restrictions. Eligibility depends on IRS rules and, in some cases, whether the expense is used to diagnose, treat, or prevent a specific medical condition.

Always confirm that an expense qualifies before using your funds.

How to Access Your HSA and FSA Funds

Using your benefits is usually straightforward:

1. Check your balance. Log in to your HSA or FSA provider's portal to see how much you have available.
2. Confirm eligibility. Review your plan's list of qualified expenses or check with your benefits administrator.
3. Pay or request reimbursement. Use your account's debit card for eligible purchases, or pay out of pocket and submit a reimbursement claim with the required documentation.
4. Keep your receipts. Maintain records of eligible expenses in case you need to verify how your funds were used.

Don't Let Your Healthcare Dollars Go to Waste

If you have an FSA, review your balance before the end of your plan year. Depending on your employer's rules, unused funds may expire, so planning ahead can help you avoid losing money you've already set aside.

HSA funds, on the other hand, continue to roll over and can help you prepare for future healthcare costs.

Understanding how to use HSA and FSA dollars is one simple way to take a more proactive approach to your healthcare. A little planning can help you make the most of your benefits while staying focused on what matters most: your health.

Can You Use HSA or FSA Dollars for Your Lanby Membership?

If you're a member at The Lanby, your membership may be eligible for reimbursement through your HSA or FSA. If you have a PPO plan, you may also be eligible for partial out-of-network reimbursement.

Not sure what your plan covers? Reach out to your Member Advocate to review your benefits, understand your reimbursement options, and learn how to make the most of your healthcare dollars.