HSA and Flex spending
A Flexible Spending Account (FSA) is a special account you put money into that can be used to pay for certain out-of-pocket health care costs without having to pay taxes on that money. FSA is available only with a job-based health plan and your employers may also contribute to your account. Generally, FSA allowances are available at the start of your coverage period and must be used in the very same period – you lose any unused allowance by the end of your coverage period. The coverage period in question is usually defined as one calendar year starting on January 1st and ending on December 31st, though some plans offer a grace period of up to March 15th of the next year to use your remaining allowance. Your employer may also allow you to carry up to $500 of unused FSA funds from the previous year.
A Health Savings Account (HSA) is essentially a savings account into which you can deposit money on a tax-preferred basis. It can be used instead of or together with traditional health insurance. HSA allows you to pay for current health expenses as well as save for future medical expenses on a tax-free basis. To be able to use a health savings account, you must be covered by a High Deductible Health Plan (HDHP). HSA funds are accumulated over the year, just like the FSA. However, unlike the FSA, these funds don’t expire and thus remain in your account until used. In case you don’t use your HSA funds in a year, the unspent money will simply roll over into your account for the next year.
Your flexible spending account or health savings account typically covers expenses like prescription drugs, doctor visits and also prescription eyewear. Yes, that’s right. You can use your flex spending account (FSA) or health savings account (HSA) spending dollars to purchase prescription eyeglasses and prescription sunglasses at Eyeweb.com, irrespective of whether or not you have vision insurance.
If you have an FSA or HSA debit card, all you have to do is enter that card's information at check-out, just like you would for a normal credit card. In case you don’t have one, you can still make your purchase using your credit card and ask for reimbursement directly from your FSA or HSA provider. This usually requires submitting a reimbursement form along with an itemized receipt or invoice (provided to you via email and also included in the package).
For more information regarding FSA and HSA based purchases, you can always call our proficient operatives at 888-449-9540!