FSA Eligible Products

FSA eligible expenses can vary depending on your employer’s plan. Check your plan information for a complete list of which items are eligible and which items are not. In general, you can use your FSA dollars to pay for: prescription medications, over the counter medications that your doctor provides you with a prescription for, insulin, copayments for doctor’s office visits, certain wellness treatments like acupuncture, and certain medical supplies like crutches and braces. Keep in mind that some over the counter medications that do not normally require a prescription for purchase may require a prescription from your doctor in order to be eligible for FSA reimbursement. Most over the counter supplies, such as bandages and walking canes, do not. Your employer should be able to provide you with a comprehensive list of FSA eligible expenses

In most cases, no. FSA funds come with a “use it or lose it” policy. If you don’t spend the money you put into the account by the end of the plan year, you’ll lose that money. CVS carries a wide selection of FSA eligible items to help you spend your FSA dollars before they expire. In some cases, your employer may choose to offer one of two options: either allowing you an extra 2.5 months to use your FSA funds before you lose them, or allowing you to rollover $500 per year for use in the following year. Be sure to check with your employer to understand the rules for their FSA plan, and don’t put more money into your FSA account than you think you will spend in one year.

FSA stands for “flexible spending account.” It is sometimes referred to as a “healthcare FSA” and most commonly abbreviated simply as FSA.

A flexible spending account, or FSA, is a special account available through employers that offer this healthcare benefit. You pay a set amount of money into the account at the beginning of the year, and you can then use those funds to pay for certain out of pocket health expenses like co-pays for office visits, deductibles, and other healthcare costs, including certain over the counter medicines and supplies. The big benefit of having an FSA is that the funds you put in are deducted from your pay pre-tax, which can save you money come tax season. While some employers may also pay into your FSA, they are not required to. Your HR department can give you more information on the company’s policy.

FSA stands for “flexible spending account.” It is sometimes referred to as a “healthcare FSA” and most commonly abbreviated simply as FSA.

Once you have determined the amount of money you want to set aside in your FSA, your employer will deduct a certain amount each week from your paycheck. Your employer may provide you with an FSA debit card, which you can use to make purchases with your FSA funds. If you are not issued an FSA card, you can pay for FSA eligible products and services however you like and submit the receipt to your FSA administrator in a manual claims process. It may be a good idea to save the receipts from your FSA purchases for tax audit purposes.

2020 FSA limits have increased from last year. In 2020, you can pay up to $2,700 into your FSA account. FSA contribution limits are set on an individual basis, so if you are married, your spouse may also be able to contribute up to $2,700 for the 2020 plan year. In addition to a standard FSA, there are a few other types of healthcare flexible spending accounts that your employer may offer. A Limited Purpose Flexible Spending Account (LPFSA) is only eligible for use on dental and vision expenses. A Dependent Care Flexible Spending Account (DCFSA) is only eligible to pay for services that your dependents may need, such as preschool, before or after school programs for children, and adult daycare. If you have one of these types of FSAs, your eligible expenses and account rules will be different. Talk to your HR department to understand the types of expenses that you can use your funds to cover.

At first glance, HSAs (health savings accounts) and FSAs (flexible spending accounts) may seem very similar. Both are used to pay for healthcare expenses and have tax benefits. However, there are key differences between the two that are important to know. The biggest difference is eligibility. Anyone whose employer offers an FSA can get one. However, to qualify for an HSA, you need to have a HDHP healthcare plan (high-deductible health plan). Contribution amount also constitutes a major difference between the two options. Once you set your FSA contribution amount, you can’t change it without a qualifying life event, such as getting married or having a child. With an HSA, you can change the amount you want to contribute at any time during the year. In most cases, FSA dollars do not rollover to the next year. However, HSA funds do rollover. And if you leave your job, your HSA can come with you to your new one. But if you leave your job with an FSA, you’ll lose the account unless you elect COBRA coverage.