Five New Expense Types Eligible for HSA and FSA Funds

The CARES Act expanded the list of expenses for Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) that are now considered eligible by including popular over-the-counter (OTC) products that can be purchased without a prescription. This change allows over 20,000 new expenses as eligible moving forward. This is great news for participants, since the average American shops for over-the-counter medications 26 times per year.

Here are five of the most common expenses that are now eligible to use HSA and FSA funds without a prescription.

PAIN RELIEF MEDICATIONS

There are many reasons to need pain relievers, headaches, sprains, muscle soreness, etc. Two common types of OTC pain medications, acetaminophen and nonsteroidal anti-inflammatory drugs (NSAIDs), are now eligible expenses for purchase with HSA and FSA funds.

COLD AND FLU PRODUCTS

OTC medicines taken to cope with a severe cough or congestion are now eligible expenses.

ALLERGY PRODUCTS

Thirty percent of American adults and 40 percent of children suffer from allergies. Those with allergies can now use the HSA and FSA funds for OTC antihistamines and decongestants.

HEARTBURN MEDICATIONS

Americans spend billions of dollars each year on medicines to treat heartburn. The CARES Act means that these OTC drugs are HSA and FSA eligible without a prescription.

MENSTRUAL PRODUCTS

The CARES Act also included menstrual care products as an eligible expense for HSAs and FSAs.

How to Know What Qualifies as an Eligible Expense

• Many participants can simply scan a product bar code using their account’s mobile app to determine eligibility as a qualified expense.
• Online shopping for eligible expenses can be done on sites such as Health Shopper, FSA Store, HSA Store, and Amazon’s FSA-HSA Store. These sites are dedicated to items that are eligible under pre-tax accounts like HSAs and FSAs. (The Arc of Washington County makes no endorsements of these sites.)
• Consult the list of Eligible Expenses found on your account’s web portal.

How It Works

• Use the Debit Card: Once retailers have updated their payment systems and inventories participants can simply use their card to pay for these newly eligible items. Keep receipts in case the purchase needs to be verified later.
• Submit a Claim: Participants can submit claims for reimbursement through the online portal or by using the mobile app.