A Guide To FSAs and HSAs
Lately, we’ve had a ton of new patients calling to see if we accept their FSA card, and the answer is ABSOLUTELY! Acupuncture and Chinese herbal medicine are definitely approved expenses when it comes to either of these accounts, we know we are biased, but it’s a great way to spend those funds too!
The Difference Between a FSA and HSA
FSA
For starters, both these accounts are pre tax so they help you reduce your taxable income by putting money away for healthcare expenses. A FSA is a Flexible Spending Account that your employer owns. Employees decide how much they would like to contribute, up to a limit per the IRS. If the funds are not used within the calendar year, December 31st of each year, that money put aside goes back to the employer, this is what they call a “Use it or Lose it” account. If you don’t spend it, you lose it. It’s like leaving money on the table, we recommend not doing that! Also, for a few plans, there is a grace period all the way to March, but this is rare.
HSA
A HSA is a health savings account that you own. Usually it requires an eligible health insurance plan and contributions are limited to whatever the IRS decides for that year, for example this year, 2022, the maximum is $3650 for self and $7750 for family coverage. HSAs are not “Use it or Lose it”, they rollover year after year and if you were to leave your employer, the HSA stays with you, unlike the FSA which does not.
How do HSAs and FSAs work?
Almost all accounts have a ‘credit card’ if you will. Most times it’s as easy as swiping, other times accounts require proof of eligibility, which means a detailed receipt with our information, including tax ID numbers and NPI numbers to ensure we are a legitimate expense. In that case, patients usually pay for services in full, we furnish what’s called a Superbill and they get reimbursed directly from the FSA.
What is Considered an Expense for my FSA and/or HSA?
Usually anything health or medical related; copays, prescriptions, acupuncture, chiropractic, physical therapy, almost anything. That being said, depending on the account/plan; massage is sometimes even considered as eligible, so inquire!
Recent Changes to the Approved Expense List!
If you are having a hard time spending all your FSA funds, check out this list at the FSA Store, you will be shocked at what is now considered an approved expense thanks to the CARES act (Coronavirus Aid Relief and Economic Security Act), things have changed! Now things like animal expenses, sunscreen, Neosporin, menstrual products and even Advil is approved. Tons of over the counter items are now included. Amazing!
If you have any questions at all about FSAs or HSAs, we can help!