FSA and HSA benefits
Covering the cost of hearing aids and getting a tax-free advantage? That’s exactly what flexible spending accounts (FSA) and health savings accounts (HSA) can help you do. With these accounts, you’re able to set aside money tax-free in order to cover eligible health expenses. They can be a great way to take care of those out-of-pocket expenses, and some even function as an addition to your retirement plan.
Take a look below at the differences between FSA and HSA, and how they can help benefit you and your hearing journey.
How an FSA works
An FSA is an employer-sponsored account that’s often part of your employer benefits package. With an FSA, your employer can choose to match the funds you contribute to the account. With a few exceptions, it’s a “use it or lose it” type of plan. That means, if you don’t use the funds set aside, they won’t roll over to the next calendar year.
If you would like to use your FSA to pay for hearing aids and supplementary costs, you have a few options:
- You can purchase hearing aids out of pocket and then file a claim along with the receipt. You will then be reimbursed from your FSA account.
- You may have access to an FSA debit card. This allows you to electronically access your FSA funds and use them to pay for your hearing aid expenses directly.
How an HSA works
Contrary to an FSA, you own your HSA. That means you can take your HSA with you regardless of employer and all funds can be rolled over from year to year. As long as you have a high-deductible health plan (HDHP), you can open an HSA. Your employer can also choose to contribute to your plan. Since an HDHP generally has a lower premium, the ability to set aside money tax-free can be a great way to ultimately save on your medical expenses.
If you would like to use your HSA to pay for hearing aids and supplementary costs, you have a few options:
- You can use your HSA debit card to directly pay for eligible medical expenses.
- If you pay for something out of pocket, you can submit a claim for reimbursement, as mentioned in the FSA section above.
