How to Start Investing Your HSA

Opening a health savings account (HSA) is a great step in the right direction for your financial future. Consider an HSA as your home for medical savings. With an HSA, you can put money aside every year to pay for qualified medical expenses in the future. With the long list of eligible medical costs you can use your HSA for, it's a powerful financial tool.

But you can do so much more than simply saving. If you're not considering HSA investment, you're missing out on piles of potential cash.

About HSA Investment

The beauty of an HSA is that it has three tax advantages. The first is that your contributions up to the annual limit are tax-deductible. The second is that qualified withdrawals are tax-free. Finally, the interest you earn through investments is tax-deferred.

Investing is the best way to make your medical expense nest egg grow. You don't need much to get started. Say, for example, that you only put a couple of hundred dollars a month into your HSA, starting at age 30. With investments, that figure can grow to well over a million dollars by the time you're 70 if you earn the stock market's standard annual return of 10 percent.

That figure makes a big difference considering how health expenses get higher as you age. You don't have to withdraw from your HSA at any specific point, so investing can help you maximize savings for long-term financial growth.

There are many ways to invest through HSA. Like a brokerage account or IRA, you need to have money in your account first. Once it's funded, you can choose what types of investments you want to make. Many providers offer simple tools and automatic rebalancing, making investment approachable even with little financial experience.

Typically, the best way to invest is with stocks, bonds, mutual funds, ETFs, etc. It's a hands-off process that can earn you substantial interest over time. Because you don't pay taxes on those gains, you can sit back and watch your HSA grow over decades.

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

What is a Tax Deduction?

When filing your taxes, deductions are a way to reduce your taxable income. Sometimes called "write-offs," deductions typically come from expenses. Using tax deductions to your advantage can lower how much you owe, making it easier to navigate tax season.

But how do they work, and is an HSA tax deductible?

Standard vs. Itemized Deductions

There are a couple of ways to claim tax deductions. The most common is the standard deduction. This method applies to most people, and its figure varies every year. The standard deduction for the 2023 tax year is $13,850 for individual filers, $20,800 for heads of households and $27,700 for couples filing jointly.

Another option is to make itemized deductions. As the name implies, this route requires you to provide specific dollar amounts of eligible deductions. Choosing itemized deductions makes sense if your total surpasses the limits for standard deductions.

It's more difficult to claim itemized deductions. You must report fixed amounts on the Schedule A of Form 1040 or 1040-SR.

What Can I Claim as a Deduction?

There are many possible deductions available. You don't have to worry about individual items if you choose the standard deduction. But for itemized deductions, you must report accurate figures. Some options have limits, so it's wise to work with a tax professional if you have several deductions you want to claim.

The most common deductions include up to $2,500 in student loan interest, up to $750,000 of mortgage interest on secured home mortgage debt and up to $10,000 on state taxes.

Is an HSA Tax Deductible?

You can deduct contributions if you have a health savings account (HSA). You can claim up to the annual contribution limits as a deduction. For 2023, that's $3,850 for self-only coverage and $7,750 for family coverage.

That's not all. Taxpayers may qualify for deductions if they have substantial medical or dental expenses. You can claim up to 7.5 percent of your adjusted gross income.

Individual retirement accounts (IRAs), 401(k) plans and other qualifying retirement plans all come with tax-deductible contributions as well.

Read a similar article about Consolidated Omnibus Budget Reconciliation Act here at this page.

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.

Why It's Important to Be an Educated Consumer on the Healthcare System

The healthcare system is notoriously confusing to those who aren't familiar with medical procedures and terminology. In most cases, patients will accept provider recommendations without considering other options or asking relevant questions. With the high cost of healthcare, being a passive patient isn't the best approach. Here's why you should take steps to become a more educated consumer and take steps to be in control of your care.

Potential Cost Savings

The most challenging part of navigating the health care system is the costs. While your overall health and well-being should be the most significant factor for any healthcare decision, money will factor in at some point.

Providers typically don't think about the financial implications of treatment. Their goal is to help you get healthy, so costs are not a part of the equation for most recommendations. Instead of blindly accepting the first recommendations you hear, research to understand costs and how procedures will affect you financially. You may find a more affordable option that helps you steer clear of medical debt.

Mitigating Risks

Another thing to think about is the risks of treatment. Patients often focus too much on the benefits without weighing the potential risks. Here's where being an educated consumer makes a difference.

For example, say that you have the option of treatment A and treatment B. While treatment A might have a slight edge over the other option, it also comes with more extreme risks. Is that a wager you're willing to make for a negligible chance of better results?

Knowing What to Expect

Sometimes, treatment plans can provide excellent results. But in other cases, you might not get the results you expect. Not every procedure will eliminate issues or alleviate pain. They may even cause additional complications to arise.

As an educated consumer, you can weigh your options more realistically by understanding what to expect. It's about being realistic and managing your expectations without making assumptions based on quick provider recommendations.

Considering Alternatives

Finally, navigating the health care system involves learning about alternatives. Don't be afraid to get second opinions or explore other options. Let's look at back surgery as an example.

While back surgery is a viable option, it doesn't always provide outstanding results. There are many risks involved. As a passive patient, you might take those risks without considering options like physical therapy. Therapy takes longer to see results, but it has fewer risks, lower costs, and comparable outcomes.

Healthcare is not something you should treat passively. It's a big part of your life that impacts your well-being and financial health. Do your due diligence, ask questions, and consider all possible options.

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Consequences for Not Following the IRS 2022 Retirement Account Contributions Limits

An individual retirement account (IRA) is a strategic way to manage your money and prepare for the future. Traditional and Roth IRAs help you save up for retirement and grow a nice nest egg. However, contributing to retirement accounts can be tricky.

These tax-advantaged accounts have strict limitations and putting more money into the account than you are allowed to could lead to some penalties.

2022 Contribution Limits for Retirement Savings Account

Understanding contribution limits is paramount. Limits can change year after year, so you must stay on top of current allowances to avoid issues.

In 2022, the most you can contribute to a Roth and traditional IRA is $6,000. The only exception is if you're over 50 years old. In that case, you can contribute up to $7,000.

Those figures reflect the combined total you can put into these accounts. That means individuals with both Roth and traditional IRAs must split the difference between the accounts.

There are additional limitations to be wary of when planning contributions. For Roth IRA, you can only contribute if you make under an adjusted gross income threshold. Making contributions when you made more than that threshold is an excess contribution.

The Penalties for Excess Contributions

Anything more than the stated limits is an excess contribution. So, what happens when you go above the 2022 contribution limits for retirement savings account?

All ineligible contributions are subject to a six percent penalty. You'll have to pay six percent on anything above the annual limit. Typically, you pay the penalty when you file income taxes.

It's important to address the issue as quickly as possible. The penalty applies every year the extra contributions remain in your account.

There are a few ways to deal with the extra funds. You can withdraw it, apply it to next year, or file an amended tax return. Remember that an additional 10 percent penalty will apply if you can't remove the excess as a qualified distribution.

The penalties for not following contribution limits can be steep. If you notice issues, fix them as soon as possible to minimize unnecessary fees.

Read a similar article about HSA compared to FSA here at this page.

Who Can Use My FSA?

Most people these days are looking for ways to save money on healthcare. After all, medical costs have done nothing but go up in recent decades, and many are feeling the squeeze, especially without insurance. Even with insurance, costs can still put a burden on your wallet. Many insurance plans have high deductibles to offset low premiums, and this means that you have to spend a lot out of your own pocket before your insurance benefits kick in.

Flex Spending Accounts May Help

One way that people are combating the rising cost of healthcare is with flexible spending accounts. A flexible spending account definition states that this is an account that is set aside specifically for healthcare expenses. Money placed into a flexible spending account is not taxed until it is spent, if at all, and funds can be used to pay for things like doctor visits and prescription medications.

The downside is that, according to most flexible spending account definition terms, funds that are not used at the end of the year are lost. Unlike a health savings account (HSA), flexible spending account funds do not roll over into the next benefit period.

Sharing Flexible Spending Account Funds

If you have a flexible spending account, you’ll be happy to know that it is possible to share your funds with certain other people. You can use a flexible spending account to pay for medical expenses for a spouse or dependents. These individuals do not have to contribute to your account, nor do they have to be associated with the account provider, such as an employer.

Spending is still regulated by the same rules, however, meaning purchases made using flexible spending account funds are limited to qualifying medical costs. Family members can, however, contribute to a flexible spending account if they choose, meaning you could use your account as a family healthcare account where each person contributes a portion each month. To set this up, you will want to speak with your account provider. Once again, this is usually an employer that sponsors the plan.

Read a similar article about what is a high deductible health plan here at this page.

The Rapid Increase of Healthcare Premiums

There’s no question that healthcare premiums have gone up in recent decades. In particular, health insurance premiums have seen a sharp uptick in the last 10 years compared to the rate of increase observed at any time in recent history.

According to some healthcare surveys, while rate increases hovered around 2% in 2020, experts predict that rates could increase as much as 5% by the end of 2022. This represents a big shift in expenses for both employers and workers who get their health insurance from employer-sponsored plans.

What’s Behind the Rise in Premiums?

There are several factors behind the rise in premiums, not the least of which are inflation concerns and stock market volatility. Many people, including those in the health insurance industry, are rightfully concerned about the cost of goods and services going up, and this can lead to a shift in premium prices to cover ever-increasing expenses.

Additionally, healthcare regulations introduced over the past 10 years have placed insurance providers and healthcare service providers in a tight spot. They now have to offer more services to more people which may end up costing more money. In addition, the uncertainty that affects the stock market has also affected the healthcare service and insurance sectors as it remains to be seen how severe the long-term effects of changing regulations will be.

What Can Be Done?

Although employers who provide healthcare insurance benefits often have little to do with what goes on in Washington or on Wall Street, employers can take a look at their 2022 benefits planning strategy to see if things make sense. Your 2022 benefits planning strategy may have looked solid on paper going into 2022, but perhaps it isn’t working out so well as the year has gotten started.

You’re now experiencing the effects of higher premiums on your bottom line, and you may be looking for ways to curb costs. This may be a time to consult with an insurance brokerage to discuss your company’s needs and see if other plan options may work better, both now and into 2023.

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Can I Open an HSA Without My Employer?

There’s no question that medical expenses take a big chunk out of most people’s budgets these days. Even simple doctors visits can run into the hundreds of dollars, and comprehensive care for hospital stays can be much, much more. While insurance can be useful in offsetting the cost of healthcare expenses, private insurance doesn’t cover all medical expenses.

For example, over-the-counter medications are generally not considered a covered expense through private insurance. Likewise, dental care is often not included in a health insurance plan unless your provider offers an add-on dental option. To pay for these types of expenses, you may have to dig into your own pocket, but there is another way – a health savings account.

What is a Health Savings Account?

A health savings account (HSA) is a private savings account that allows you to place money into it tax-free. Unlike insurance benefits, these funds can be spent on a variety of healthcare expenses, including over-the-counter medications and dental care.

Most people access an HSA through an employer-sponsored insurance plan. In many cases, access to an HSA will be offered alongside a group health insurance policy. This allows all of your benefits to be administrated under one provider, making it easier and more convenient to keep up with everything.

Opening a Private HSA

Despite most HSA accounts being available through employers, you can opt for private health saving account administration. This can be done through investment firms as well as banks, and some people with individual health insurance plans that are not employer-sponsored may also be able to access private health saving account administration through their insurer.

These plans typically operate on the same principles of allowing you to save tax-free funds to be used for healthcare expenses. Because each account administrator is different, you might consider shopping around to find the provider that’s right for your unique needs. Additionally, you will want to check with local healthcare providers to ensure that they accept HSA funds for their products and services.

Read a similar article about HSA account providers here at this page.

Do I Need to Use a Third Party Administrator for My HSA?

Running a business of any size can be difficult, especially with how fast the digital economy moves these days. You already have a lot on your mind, and managing benefits is often just one more thing to worry about. This becomes particularly challenging when you have a large workforce that is spread out across the country or even the world. Different states and countries have different laws and regulations, and keeping up with everything can be a chore.

For some business owners, the solution to these problems is to hire an HR team to handle tasks like health savings account (HSA) management. For others, it may make more sense to go with a third party administrator (TPA) to handle HSA benefits. Which one you choose is up to you, but there are pros and cons to each approach.

Why Choose a TPA?

An HSA TPA can take a lot of the burden off of your shoulders when it comes to managing plans, accounts and benefits. Your HSA TPA acts as an advocate for your company and its employees so that you can focus on other important tasks.

A TPA can also take care of other benefit programs that you provide to employees, including mental health benefit programs and return-to-work programs. Essentially, your TPA functions as an all-in-one administration team for medical benefits.

The Benefits of Handling Your Own HSA Administration

If you choose to keep your benefits administration in-house, you’re going to have much more control over how things are managed. Of course, this means more work for you and your team, but some business owners find this trade-off worth the extra hassle.

Employees may also prefer to deal one-on-one with your company through HR to handle questions and concerns about HSA and other benefits. Working through a third party often means more phone calls, emails and other communications bouncing back and forth. In-house benefits administration cuts out a lot of the bureaucracy and provides a more efficient route for your employees to gain access to the information they need most.

Read a similar article about “difference between HRA and HSA” here at this page.

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What Is a Dependent Care FSA?

It’s no secret that child care is expensive. If you’re looking for ways to stretch your budget to cover the cost of child care, a dependent care FSA can help.

What is a dependent care FSA?

A dependent care FSA is a pre-tax benefit account you can use to pay for eligible dependent care services. For example, you can use the funds to pay for preschool, daycare, summer camp, and before or after school programs. You can even use the funds in a dependent care FSA to pay for adult daycare in eligible situations.

To use a dependent care FSA for your child, he or she must be under the age of 13. To use the funds for adult dependent care services, the adult must be a physical or relative that lives in your home and is physically or mentally incapable of caring for themselves.

Benefits of a dependent care FSA

The primary benefit of a dependent care FSA is that any money you set aside in the account is tax-free. That means you reduce the amount of your income that is subject to taxes by contributing pre-tax dollars to your account. Additionally, according to the The Federal Flexible Spending Account Program (FSAFEDS), you can save an average of 30 percent on dependent care services like daycare or after school programs.

One of the main concerns people have about a dependent care FSA is the burden of submitting required documentation and getting reimbursed for the dependent services. Although you have to cover the cost of dependent care services upfront, with a dependent care FSA, it’s easy to get reimbursed for those expenses. You can easily submit and view the status of claims online, look up eligible expenses, and check your account balances. You can even have the money directly deposited into your checking account for fast and hassle-free repayment.

Dependent care FSA contribution limits

Although this type of benefit account may sound like it’s a perfect solution for you, you should also note that some dependent care FSA contribution limits apply. A dependent care FSA lets you set aside up to $5,000 per household to pay child care expenses for kids under age 13 while you and your spouse work or look for work. If you are confident that your child care expenses will meet or exceed dependent care FSA contribution limits, the FSA might be an ideal option for you and your family.

Read a similar article about how to maximize your HSA here at this page.

Long-Term Care and Health Savings Accounts

Planning for long-term care isn’t something that most people like to think about, but failing to plan for the potential need for long-term care can lead to some difficult consequences. The fact is that, as life expectancy continues to grow in the United States, more and more people are going to need long-term care.

This type of care may be provided in a nursing home, a traditional hospital or at home, and it may last months, years or even longer. Even if you’re able to pay for initial fees, are you prepared to continue paying for care that may last for years or decades?

Does Insurance Cover Long-Term Care?

Private insurance may or may not cover long-term care depending on your policy and provider. Some insurance providers offer long-term care as an add-on benefit, but most do not provide this coverage as a core offering of most plans.

You may also think that Medicare provides coverage for long-term care since the program is designed for seniors, but Medicare does not have a long-term care benefit either. Original Medicare does provide hospital care under Medicare Part A, but this is limited to 90 days per benefit period unless you have lifetime reserve days to utilize.

Using a Health Savings Account

Because private insurance and programs like Medicare are limited in their approach to long-term care, you might consider turning to a health savings account (HSA) to pay for this type of care. Perhaps you’ve already looked into the best HSA for investing to grow your wealth, but you might want to also take a look at what long-term care facilities accept HSA payments for care in your area.

After all, the best HSA for investing isn’t necessarily the best HSA for handling things like long-term care needs. You’re encouraged to examine your existing plan now to ensure your contributions are working for you and not against you. While many long-term care facilities accept HSA payments, you will also want to make sure that utilizing an HSA for this type of care is in line with financial and healthcare regulations in your state.

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Who Can You Cover With Your HSA?

Saving for the future is easier when you take advantage of the benefits that a health savings account provides. Your tax-free investments earn interest the longer they stay in the account, and you can use the money without having to pay taxes on it as long as you spend it on IRS-approved health care items and services. This HSA account FAQ can help you determine who is covered when you need to pay a health expense.

Does Our Tax Status Impact My Spouse?

Your spouse is covered under your HSA even if you file your taxes separately. You’ll also find it helpful to know that you can use your HSA funds on your spouse if they have a separate health account. Keep in mind, however, that you and your spouse have a shared contribution limit even if you have individual HSA accounts.

Can I Use HSA Funds for My Senior Parents?

If your parents lived with you during the year and you provide for the majority of their needs, then you can also use your HSA funds to help with the cost of their health care. In this instance, your senior parents fall under the guideline of being a qualified dependent. This can also apply to other people in your home such as an aging grandparent.

When Are My Children Covered?

Changes in a person’s family dynamics frequently lead to one of the most popular HSA account FAQ posts. Adult children who have moved out of your house may still be considered a qualifying dependent if they are covered under your health insurance. You can also claim your children even if they are claimed on your ex-spouse’s tax return. Step-children also fall under the category of being a qualified dependent.

Many people are unaware that they can use their HSA funds for people who are not their direct children or dependent spouse. Knowing when and how you can use your funds helps you to rely on them when you face health care expenses while being able to take advantage of those important tax-saving benefits.

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How Many HSAs Can I Have?

The financial benefits offered by a health savings account are tremendous, so you understandably want to maximize those benefits. Are you wondering, "Can I only have one health savings account for my family?" Generally, the rule is one account per qualified individual, but there are some nuances that you need to know about.

For Married Couples

When you ask, "Can I have more than one health savings account for my family?", be aware that one spouse can have a family account or each spouse can have his or her own HSA. The total family contribution per year is $7,000. If each spouse maintains an individual HSA, the individual contribution limit would apply. This limit is $3,500 per year. Regardless of whether one family account is in place or the spouses each have their own HSA, all eligible family members can use the funds.

For Unmarried Individuals

There are several reasons why an individual may prefer to have more than one account. For example, an HSA custodian may be automatically selected by your employer, and your employer may contribute partially to that specific account. However, you may prefer to use another custodian because it offers more investment options. This is only one of many situations when it could make sense to have more than one HSA account. You are permitted to have multiple accounts, but your annual contribution limit applies. This means that you can contribute up to $3,000 per year as an individual across two separate accounts if you prefer.

Are you interested in opening a new HSA? Your first step is to compare the different fees and investment options offered by various custodians. Then, adjust your finances so that you can max out your HSA contributions and enjoy the full benefits that an HSA provides.

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Are Vitamins HSA Eligible?

If you're like an estimated 86 percent of Americans, you probably take vitamins regularly. Supplement usage has skyrocketed in recent years as more people attempt to take a proactive approach to their health.

There's tons of information out there about HSA coverage, contribution limits, or how to calculate HSA tax savings over time. But few truly understand how vitamins fit into the equation. Are vitamins an HSA-eligible expense? Let's find out!

Understanding HSA Eligibility

Health savings accounts prioritize necessary medical expenses. Eligibility can be confusing. For clarity, you must look towards IRS guidelines. The code ultimately determines what medical care expenses are eligible for tax deductions.

We won't get into the technical jargon. However, the IRS code essentially states that funds used to diagnose, cure, mitigate, treat, or prevent a specific medical condition qualify.

Do Vitamins Meet the Criteria?

Unfortunately, most vitamins do not meet the IRS definition. It's a bit of a gray area, as many vitamins focus on general health. They fill the nutritional gaps you experience in your diet while addressing deficiencies.

That said, vitamin use is mainly optional and doesn't treat a specific condition. For this reason, vitamins aren't a qualifying medical expense that your HSA will cover.

Notable Exceptions

Most vitamins don't fit the bill for HSA eligibility. But, there are a couple of exceptions!

The first is prenatal vitamins. These vitamins directly support fetal development and can help prevent complications or defects. Many women's health physicians recommend them during pregnancy.

Another exception is glucosamine and chondroitin. These supplements support the joint cartilage, which may help slow deterioration and alleviate pain. Physicians typically recommend them to treat conditions like arthritis.

Those are the two main exceptions, but others do exist. Doctors who prescribe vitamins to treat specific conditions can provide a Letter of Medical Necessity. With that letter, the HSA may cover the costs.

Finding the Right HSA Plan for You

While most vitamins don't fall under the umbrella of qualifying HSA expenses, these plans are still worth getting. Once you know how to calculate HSA tax savings, the benefits become apparent. The best HSA plans help you prepare for the future, provide peace of mind, and maximize your financial safety net.

Read a similar article about individual health savings account here at this page.

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How Can I Use an FSA for Alternative Medicine?

Many Americans are able to find relief through alternative medicine and health practices. If you enjoy alternative medical treatments and you use a flexible spending account (FSA), you might be wondering if you’d be able to cover those treatments with your FSA. In this blog, we’ll talk about which alternative medicines are FSA-eligible expenses.

Is Alternative Medicine an FSA Eligible Expense?

Many individuals with flexible spending accounts are surprised to find out that many alternative treatments actually are FSA-eligible expenses. As long as you have a letter of physical necessity from your doctor or therapist, these treatments are often covered. Sometimes, depending on the type of treatment, the letter might not even be needed.

Here are some of the alternative medical treatments you might be able to cover with your flexible spending account:

• Massage: Massages can help relieve a variety of ailments. For these treatments, you’ll often need to obtain a letter from your doctor. Massages for rest and relaxation are not covered, however.
• Acupuncture: Acupuncture is another alternative treatment that has been known to help relieve certain conditions. For acupuncture, you will likely need a letter from your doctor.
• Chiropractic: You may want to get a note from your doctor for this treatment as well, but in some cases you may not need a letter if the treatments are related to a chronic condition or injury.
• Therapy devices: You can even use your FSA to buy therapy devices to use at home. This way you can get the treatment that helps with your condition on a regular basis. For these devices, you will need a letter from your doctor.

As you can see, flexible spending accounts can be very versatile, as long as the treatments are deemed helpful or necessary by your doctor or physical therapist.

Choosing an FSA

Now that you know more about what an FSA can cover and what alternative treatments are FSA-eligible expenses, you may be wondering which FSA you should choose. Make sure to look at your options and find an FSA that works best for you, so you can get the most out of it.

Read a similar article about how to compare health insurance plans here at this page.

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