Did you know that you can use your Health Savings Account (HSA), Health Flexible Spending Account (FSA), or Health Reimbursement Arrangement (HRA) to pay for certain over-the-counter (OTC) items? These accounts allow you to set aside pre-tax money to cover various medical expenses, including some everyday products that you might need for your health.
What Can You Buy?
Generally, you can use these accounts to buy over-the-counter items that are meant for “medical care.” This includes things like pain relievers, allergy medicines, cold and flu treatments, and even products for conditions like acne or arthritis. The key is that the item must be used to diagnose, treat, or prevent a medical condition.
No Prescription Needed
Before 2020, you usually needed a prescription to use your HSA, FSA, or HRA for OTC medications. But thanks to a change in the law, you can now use these accounts for OTC items without needing a prescription. This also includes menstrual care products, which are now considered qualified medical expenses.
What Doesn’t Qualify?
Not all OTC items are covered. Products that are mainly for general health or personal use, like vitamins for overall wellness or toiletries like toothpaste, are not eligible unless they are used to treat a specific medical condition. For example, if your doctor recommends a certain vitamin to treat a deficiency, it might be covered. You can check the IRS website or your HSA, FSA, and/or HRA provider’s website to learn what is a qualified expense and what is not.
Tips for Using Your Benefits
When purchasing OTC items, keep your receipts and any relevant documentation, especially if your doctor recommended the item. This will make it easier to get reimbursed or prove the expense if needed.
Next Steps
To make the most of your HSA, FSA, or HRA, start by reviewing your current eligible expenses and identifying any over-the-counter items you frequently use that may be covered. Keep your receipts and any doctor’s recommendations for easy reimbursement. If you’re unsure about what qualifies, check with your benefits provider or consult the IRS guidelines. Don’t forget to share this information with your colleagues and family members who might benefit too!
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