Your Health Savings Account (HSA) and Flexible Spending Account (FSA) both help you pay for healthcare costs. You can use either one for Qualified Medical Expenses, or QMEs. These are the healthcare costs the IRS allows these accounts to cover.
QMEs include:
- Virtually all medical, dental, vision, and prescription expenses that your insurance doesn’t cover
- Eligible over-the-counter medications
- Menstrual products
- Appointments, like doctor visits, specialist visits, dental checkups, and vision exams, plus the copays and coinsurance that come with them
You can use your HSA for qualified expenses for yourself, your spouse, and your tax dependents.
Neither account can be used to pay standard health insurance premiums, like the premium for your employer’s medical plan. There are a few exceptions for HSAs, but not for FSAs.
HSA exceptions: You can use your HSA to pay premiums for:
- COBRA continuation coverage
- Qualified long-term care insurance, up to an age-based limit set by the IRS
- Health coverage while you’re receiving unemployment benefits
- Medicare Parts A, B, or D, if you’re 65 or older. Medigap (Medicare supplement) premiums aren’t included.
Specific to FSA: You can’t use your FSA to pay any insurance premiums. An FSA also has a use-it-or-lose-it rule, so you generally need to use your funds by the end of the year. Some employers offer a limited carryover or a grace period, so check with your HR team to see what applies to you. Your employer’s plan rules apply to what you can buy, so check with your FSA provider for the full list.
Not sure if a specific purchase qualifies? Unfortunately Nayya can’t confirm that for you, as we are not the direct providers of these benefits. Please contact your HSA or FSA provider, or ask a tax adviser.
To learn more, see What is an HSA, FSA, or HRA? and Should I choose an HSA or an FSA?
Questions? Email support@nayya.com. We’re available Monday through Friday, 9:00 am to 5:00 pm ET