Using Your HSA and FSA Plans

Using your HSA and FSA plan at Associated Audiologists

If you have a Health Savings Account (HSA) or a Flexible Spending Account (FSA), now may be the time to schedule an appointment with a doctoral-level audiologist for a diagnostic hearing evaluation. Prescription hearing aids are qualified medical expenses for both plan types and if you’ve met your annual deductible, you may have benefit coverage you can use.

As we round the corner to the last quarter of 2024, it’s definitely time to think about using your health savings account (HSA) or flexible spending account (FSA) plan benefits. Both are important methods patients can use to pay for prescription hearing aids, and great ways to save on taxes and healthcare expenses.

Using an HSA

A Health Savings Account (HSA) is a tax-advantaged account created for or by individuals covered under high-deductible health plans to help save for qualified medical expenses. Contributions are made into the account by the individual or their employer and are limited to a maximum amount each year. In 2024, the maximum contribution for an HSA is $4,150 for an individual.

The contributions to an HSA are invested over time and can be used to pay for qualified medical expenses, such as medical, dental, vision and hearing care, as well as prescription drugs.

To be eligible for an HSA, you must:

  • Have a qualified high-deductible health plan.
  • Have no other health coverage.
  • Not be enrolled in Medicare.
  • Not be claimed as a dependent on someone else’s tax return.

The dollars set aside for health-related expenses don’t expire and can sit in the health savings account for use at any time in the future, rolling over from year to year. Plus, there is no tax on contributions to an HSA, the HSA’s earnings, or distributions used to pay for qualified medical expenses. This makes it one of the most attractive ways for individuals to save and pay for qualified medical expenses.

Using an FSA

If you have a flexible spending account (FSA) through your workplace, prescription hearing aids qualify as an expense. Using an FSA or HSA also can reduce your taxes, so it can be a great way to save throughout the year for a health expense you know you need to make, and also save tax dollars.

Here’s how an FSA works. All year long, via your employer’s plan, you have a designated amount of funds withdrawn from your paycheck and deposited in a special FSA account. You don’t pay taxes on these dollars. That means you reduce your taxable income by the amount you set aside in the FSA.

There are some limits to how you can use these accounts though. In most cases, a pair of advanced hearing aids will cost more than the limit. Because these plans are “use it or lose it,” it’s good to know that if you choose to pay for your hearing aids this way, you’ll use it, not lose it.

You use your FSA by submitting a claim to the FSA plan administrator (through your employer) with proof of the medical expense and a statement that it has not been covered by your insurance plan. You will then receive reimbursement for your costs. Your employer should be able to tell you how to use your specific FSA.

In most cases, you must use the dollars you’ve saved in your FSA by the end of the calendar year. That’s why it’s important to plan carefully and not put more money in your FSA than you think you’ll use, and use what’s in there by the end of the year. In many cases, if you don’t use those dollars, you lose them.

If you have dollars set aside in an HSA or FSA and think you may need hearing aids, now is the time to act. Appointments fill up quickly in the last quarter of the year as individuals use these plans or their health insurance benefits.

In addition, Associated Audiologists can provide you with the appropriate forms and documentation to file with your HSA or FSA. So, be sure you allow plenty of time for a diagnostic hearing evaluation with a doctoral-level audiologist and schedule an appointment now.