Can I use my Flexible Spending Account / Health Savings Account in Your Practice?

(updated 10/9/2023)

This is a regular question we receive at Real Food Matters.  The answer is YES if what you are using it for is covered under your plan as a qualified medical expense.

To help answer your questions on Flexible Spending Accounts / Health Savings Accounts in my practice, my business manager Amy Timms (who was a human resources expert in a previous life) put together this short Q& A to help address questions.

What is a Flexible Spending Account (FSA)

A flexible spending account is an account where you set aside pre-tax dollars under your employer’s benefit plan to cover qualified medical expenses.  That money remains untaxed when you use your FSA account to pay for qualified medical expenses.

Here is an interesting statistic on Flexible Spending Accounts (FSA). Money.com reported “more than 40% of workers with FSAs forfeited at least part of their account contributions in recent years, according to new data that the nonprofit Employee Benefit Research Institute (EBRI) shared with Money. On average, they lost between $339 and $408 a year by not using up all of their FSA money by the spending deadline.” Now that’s A LOT of money, in fact, it would pay for Karen’s Hack Your Blood Sugar Program.

My advice….check your FSA balance before year-end and make sure you have a plan to spend the money you set aside on qualified medical expenses.

What is a Health Savings Account (HSA)

A Health Savings Account also allows you to set aside pre-tax dollars for qualified medical expenses not covered by your insurance as long as you are enrolled in a high-deductible health plan (HDHP).  That money remains untaxed when you use your HSA account to pay for qualified medical expenses.

What is considered a qualified medical expense under an FSA/HSA plan?

The IRS defines a medical expense as, “…the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.” (Pro tip: That includes your continuous glucose monitor.)

Check with your Plan Administrator to find out what are qualified medical expenses under your plan.  You can also find what is an eligible medical expense in IRS Publication 502 – Medical Expenses:  https://www.irs.gov/pub/irs-pdf/p502.pdf

Does Practice Better accept my FSA and HSA cards?

Yes – Use your FSA or HSA card as you would a credit card.

Can I pay for the supplements you recommend with my FSA/HSA card? 

YES, if the supplements are “recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician.”  Again, you can check with your Plan Administrator for any questions.

Does Fullscript accept my FSA and HSA cards?

Yes – Use your FSA or HSA card with your Fullscript account as you would a credit card.

What if I have more questions about whether I can use my FSA or HSA account?

Your Plan Administrator is your best contact if you have a specific question to determine if something is considered a qualified medical expense.