Flexible Spending Accounts (FSAs) can be an asset to any employee benefits package because employees can set aside pre-tax funds to be used for eligible healthcare expenses. Due to the nature of the public health emergency posed by COVID-19 and the unanticipated changes in availability of certain medical care, you may be more likely to have unused health FSA amounts at the end of the year.
In 2020, the Internal Revenue Service loosened restrictions on employers, which granted employees the ability to take advantage of unused health FSA funds to cover a broad array of medical products and services.
Below are a few examples of how you can use your FSA dollars:
- Stock up on feminine products — You can use your FSA dollars for feminine products such as tampons, pads, or menstrual cups. Without having to contact a doctor, you can also purchase ibuprofen, heartburn medicines, as well as allergy, cold, or flu remedies with your FSA funds.
- Upgrade your COVID-19 kit — Face masks, hand sanitizer, sanitizing wipes, thermometers, and pulse oximeters, qualify as eligible expenses that can be paid for with your FSA dollars. Keep in mind, a Letter of Medical Necessity (LMN) from a doctor is required.
- Prioritize wellness and exercise — With the summer here, dust, pollen and other common allergens can make it hard to breathe. Air filters and purifiers, which are both eligible expenses with an LMN, clear bacteria, mold, fungus, and particles in the air. You can also use your FSA dollars on exercise equipment if you have an LMN saying it is necessary to treat a medical condition.
- See a doctor — With a large majority of doctor appointments postponed within the last year, you are encouraged to schedule an appointment with your doctor, and to use your FSA dollars to pay for copays and other out-of-pocket costs. Additionally, Rx sunglasses, corrective eyewear, cleaning cloths and repair kits can all be purchased with FSA dollars.
If you have unspent money left at the end of the year, consider using those funds to stock up on items you know you might need for the next calendar year. Check out the FSA store website — a one-stop-shop for eligible medical products!
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