FSA/HSA Explanation
What is a Flexible Spending Account (FSA)?
Many employers allow their employees to deduct pre-tax dollars from their paychecks to fund an employer-sponsored Flexible Spending Account (FSA). These funds may be used to pay for medical services, over the counter, prescriptions and vision health expenses. Consumers may pay for eligible FSA products and services with an FSA debit card and/or be reimbursed for expenses submitting receipts to their healthcare administrator.
What is a Health Savings Account (HSA)?
A Health Savings Account (HSA) lets you, your employer or anyone else contribute pre-tax dollars to pay for eligible medical expenses. Unlike a Flexible Spending Account (FSA), the funds in your Health Savings Account (HSA) account never expire and continue to accrue year after year. Your Health Savings Account is yours even if you leave your employer.
Do the funds in my FSA account expire?
The funds in your FSA account usually “expire” and revert back to your employer at the end of each calendar year. Your employer’s program may offer a grace period in the new year to submit receipts from the previous year for reimbursement. It may also allow you to spend your FSA funds for a limited time in the new year. Other programs may allow you to roll over the funds to the new year’s account.
In addition, any funds available in your Flexible Spending Account revert back to your employer the day you leave your employer. Please contact your healthcare or FSA administrator to understand the benefits included in your company’s program.
In addition, any funds available in your Flexible Spending Account revert back to your employer the day you leave your employer. Please contact your healthcare or FSA administrator to understand the benefits included in your company’s program.
Are all items in The Medical Zone FSA/HSA eligible?
The Medical Zone clearly denotes items that are FSA or HSA eligible. Not all items in our website, however, are FSA/HSA eligible. The IRS establishes guidelines for FSA programs; however, individual employers have a final say of what expenses are eligible in their FSA programs. Due to the differences among consumer’s FSA/HSA accounts, it is your responsibility to verify with your FSA/HSA administrator if an item is eligible for FSA/HSA under your employer’s program.
How do I get reimbursed for my FSA/HAS eligible purchase?
The Medical Zone accepts most major credit cards. Once you have made your purchase, you can print your receipt and submit it per guidelines from your FSA/HSA administrator for reimbursement.
What happens if my reimbursement is denied?
The Medical Zone does not determine what products are reimbursable under your FSA/HSA program. You will need to check with your FSA/HSA administrator for what products are covered. The administrator of your plan is the only entity that can determine your eligibility for reimbursement.
Are my expenditures deductible on my taxes?
The IRS determines what is a covered expenditure. If you want to review the IRS tax code, we have included the link here: https://www.irs.gov/forms-pubs/about-publication-969