Written by Jacqueline Caffrey, Physician Assistant
January 2nd 2025
Imagine this: It’s December 31, and you’re frantically Googling, “What can I buy with my FSA money before it disappears?” You’re about two clicks away from panic-buying a warehouse-sized box of Band-Aids when you wonder, “Wait, is there a better way to handle this whole health savings thing?” Spoiler alert: there is.
If you’ve ever been confused about FSAs and HSAs, or you’re tired of losing money to the mysterious health finance abyss, grab a cup of tea (or an FSA-eligible heating pad) and settle in. We’re breaking down the difference between these accounts, how to maximize their benefits, and how Flexup Wellness PLLC can make the most out of every dollar—even for those expenses that seem like they’re not covered.
What’s the Deal with FSAs and HSAs?
Let’s start with the basics: FSAs and HSAs are like secret weapon accounts to pay for health-related expenses using pre-tax dollars. But they’re not exactly twins—more like distant cousins who show up to family reunions and only vaguely understand each other. Here’s how they stack up:
Flexible Spending Account (FSA)
What it is: A use-it-or-lose-it account provided by your employer. You contribute a set amount annually to cover eligible medical expenses.
Key facts:
Contribution limit (2025): $3,300.
Funds must generally be spent by the end of the year (some employers offer a grace period or let you roll over $610...how kind of them).
You can’t take it with you if you change jobs.
Health Savings Account (HSA)
What it is: A more flexible account tied to a high-deductible health plan (HDHP). You contribute pre-tax dollars and can save or spend them as needed.
Key facts:
Contribution limit (2025): $4,300 for individuals, $8,550 for families.
Funds roll over every year (it’s yours forever, like a financial pet you can’t lose).
You can invest the money and grow your savings tax-free.
Big Difference:
FSAs have an expiration date on your funds (a ticking time bomb of medical spending).
HSAs are more like health savings accounts on steroids: they’re tax-advantaged, long-term, and versatile.
What Can You Actually Buy With These Accounts?
You might think, “It’s for medical stuff, right?” Sure… but the list of eligible expenses might surprise you. Here are the highlights:
12 Health Costs Your FSA/HSA Will Cover
Doctor co-pays and prescriptions.
Over-the-counter medications (yes, ibuprofen counts!).
Vision care (glasses, contacts, and eye exams).
Dental work (cleanings, braces, and dentures).
Hearing aids and batteries.
First-aid supplies (bandages, thermometers, etc.).
Chiropractic care.
Birth control and fertility treatments.
Mental health therapy.
Acupuncture.
Smoking cessation programs.
Breast pumps and lactation supplies.
12 Health Costs Your FSA/HSA Won’t Cover (Usually)
Gym memberships, crossfit, orange theory.
New mattress for sleep.
Home gym equipment, such as a peloton.
Vitamins and supplements (unless prescribed).
Yoga classes.
Massage therapy (unless medically necessary).
General wellness apps or tools, like "waking up" or "nerva."
Medspa treatments.
Cold plunges.
Probiotics.
Air filtration for allergies.
Red light therapy.
But don’t lose hope! That’s where Flexup Wellness PLLC comes in.
How Flexup Wellness PLLC Can Help You Hack the System
Here’s the magical part: Some of those “ineligible” expenses can become eligible if they’re deemed medically necessary. That’s where Flexup Wellness PLLC steps in like the hero you didn’t know you needed.
What They Do:
Flexup Wellness evaluates your health status and provides a Letter of Medical Necessity (LMN). This official document can make certain ineligible expenses—like massage therapy or vitamins—eligible for FSA/HSA coverage.
How It Works:
Fill out health evaluation: Information is reviewed by a licensed nurse practitioner to establish eligibility. Expect a phone call to iron out details and ensure you are getting what you want.
Get your LMN: Receive a detailed letter outlining why a particular treatment or product is necessary for your health after review.
Submit to your FSA/HSA: Use the letter to get reimbursements for previously ineligible costs, such as gym membership or the mighty AG1 (It's great!)
Why You Need This:
Maximize your dollars: Stop leaving money on the table.
Access better care: Use your funds for treatments that genuinely improve your well-being.
Peace of mind: Let the experts handle the paperwork and rules.
Top Hacks for Using FSAs and HSAs Like a Pro
Now that you know the basics, let’s dive into some pro tips for making the most of your accounts.
1. Plan Your Contributions Wisely
Estimate your yearly medical expenses so you’re not scrambling to spend unused FSA funds.
For HSAs, aim to max out contributions if possible. The triple tax advantage (pre-tax contributions, tax-free growth, and tax-free withdrawals) makes it a powerful savings tool.
2. Keep All Your Receipts
Whether you’re buying bandages or braces, save those receipts. You might need them for reimbursement or tax purposes. (The old fashioned way or a receipt app with pictures is super helpful!)
3. Pair FSAs/HSAs With Telehealth
Companies like Flexup Wellness PLLC not only make health management easier but can also help you identify eligible expenses you may have overlooked.
4. Use It for Preventive Care
Schedule annual check-ups, vision exams, and dental cleanings. These are covered and can help you avoid more costly treatments down the road.
5. Invest Your HSA Funds
If you have more money in your HSA than you need for immediate expenses, invest it. It’s a sneaky way to build a retirement healthcare fund. Learn about ETF's for diversification!
6. Take Advantage of Year-End Sales
Many stores offer discounts at the end of the year, making it easier to spend leftover funds on eligible items.
Final Thoughts
FSAs and HSAs might sound intimidating at first, but with a little knowledge (and some help from Flexup Wellness PLLC), they’re incredible tools for managing your health and your finances. Whether you’re buying prescription glasses, stocking up on first-aid supplies, or getting a medically necessary massage (yes, that’s a thing), these accounts are here to help.
It's wise to begin early, ensuring your annual gym membership is valid for 12 months. So when December approaches and you're facing the "use it or lose it" cutoff, you'll be prepared. If you're uncertain about qualifications, Flexup Wellness supports you with their LMN expertise.
Now go forth, spend wisely, and make 2025 the year you finally conquer health savings like a pro.
Good read and breakdown