Can I Buy Face Wash With My HSA?

A health savings account (HSA) is a special savings account that allows you and designated representatives to contribute tax-free money that can be used for healthcare-related expenses. Most people have access to an HSA account through an employer as a workplace benefit. Additionally, contributions to an HSA account are often made directly through paycheck deductions, but employers also contribute a set amount or match a percentage of an employee’s contributions each month, quarter or year.

What Can HSA Funds Be Used For?

HSA funds must be used to make healthcare purchases, but not every purchase that falls under the healthcare category is covered. For the most part, basic medical care costs like doctor visits, prescription medications, and medical procedures can be paid for using HSA funds.

In some cases, there may be a question about whether something qualifies for HSA fund eligibility. In these cases, you can always consult with your account manager or your human resources department representative. These people should be able to provide you with plan details that lay out what is covered and what is not covered.

Purchasing Face Wash With HSA Funds

Although HSA funds are often used for expensive medical care, they can also be used for some over-the-counter healthcare products, including medicated face wash. Face wash is considered a healthcare product under HSA guidelines for most people, but you may need to have a qualifying medical condition to prove that the expense is medical and not merely for cosmetic purposes. You won’t need to prove this when making a purchase of face wash with HSA funds, but you may need to prove it if your purchase is audited and rejected.

How Do You Spend HSA Funds?

Most HSA accounts will come with a credit or debit card that is connected to the user’s account. When you make a healthcare purchase, you simply use your HSA card like a normal credit or debit card.

In most cases, there will not be a personal identification number (PIN) associated with your card, so you may need to run the card as a credit card for it to process properly. Keep in mind that purchases may be audited, so if you purchase a non-covered item using HSA funds, you could be issued a penalty and be required to pay back the money that was spent.

Read a similar blog about HSA strategy here at this page.

How Has Inflation Impacted Healthcare?

Inflation is a challenge in 2022, and it looks like inflation may continue to be an issue into and through 2023. Healthcare is an industry that sometimes doesn’t feel inflation as much as others, but have things changed this time around? If so, how much has inflation impacted healthcare, and are there ways to save on healthcare inflation?

Why Inflation Doesn’t Always Directly Impact Healthcare

Inflation often bypasses producing a direct hit on healthcare for two reasons. First, healthcare is something everyone needs at some point, and second, healthcare costs and insurance agreements are usually fixed in place years in advance. The difference in 2022, however, is that, as demonstrated by the Covid-19 pandemic, the public has become accustomed to limited healthcare options.

Also, despite planning, costs of other goods and services are going up, meaning costs for everything related to providing healthcare are going up. While services themselves may not cost more to provide, the cost of a new imaging machine delivery or new office supplies has probably risen.

Paying Employees

Another consideration is that there are inflation forces at play when it comes to wages for healthcare workers. Although many doctors have fixed agreements with large healthcare providers, office staff, nursing staff, janitorial staff and other people working in healthcare facilities have seen their costs increase.

At the same time, due to inflation, wages being offered by other industries are also exploding. This can lead to stiffer competition for healthcare employers who need to retain top talent, meaning the need to pay out greater compensation could be a factor.

Cutting Costs to Fight Inflation

One way to save on healthcare inflation is to look for ways to reduce costs. These reductions can be difficult to make in healthcare, as virtually every expense has an important purpose. Although you would never want to compromise on life-saving technologies and medicines, your facility may consider looking for ways to reduce everyday bills.

Likewise, you can reduce the impact of inflation by examining various metrics at your workplace to see where costs are high. If you don’t take the time to engage in analytics, you may miss opportunities to reduce spending, so break out the spreadsheets and start looking over your datasets.

Read a similar article about medical FSA here at this page.