HSA / FSA 101

HSAs are linked to high-deductible health plans (HDHPs) and allow you to contribute pre-tax income, which you can invest to grow over time.

FSAs are not tied to specific health plans and let you contribute pre-tax dollars for eligible expenses, but funds typically must be used within the plan year.

Traditionally, HSAs and FSAs have been seen primarily as ways to save on out-of-pocket medical expenses. Many people viewed them as just accounts for co-pays, deductibles, and basic items like sunscreen and bandaids, limiting their potential benefits and usage.

There’s a movement happening that is changing the way people view and use HSAs and FSAs. Increasingly, root cause interventions—like fitness programs, supplements, and health technology—are recognized for their ability to prevent and manage chronic conditions such as diabetes and heart disease.

IRS regulations allow for the reimbursement of these health products and services when an individual is prescribed an intervention by a medical practitioner via a Letter of Medical Necessity (LMN) as a means to cure, treat, mitigate OR prevent chronic disease.

In other words, if you have an LMN from a medical practitioner stating that a product or service is medically necessary, you qualify to pay for this item with pre-tax funds. This saves you your effective income tax rate, which is an average of 30% across all Americans.

Truemed makes this process seamless by connecting you with practitioners who can recommend eligible interventions, and if qualified, enable the ability to either:

1. Pay directly with your HSA/FSA card.

2. Reimburse your eligible payment from your HSA/FSA account

Choose an HSA/FSA plan and maximize your contributions today to unlock pre-tax spending on your favorite brands!

Not sure if you have access to an HSA or FSA account? Reach out to your employee benefits coordinator to explore available options and enroll during open enrollment.