New HSA & FSA Eligible Expenses | Healthcare Items to Buy Right Now

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The CARES Act that was passed into law in March 2020 didn’t just approve stimulus payments, it approved a slew of new HSA and FSA eligible expenses that you can and should take advantage of. 

I’ve made a list of the top 10 items everyone should be getting and where to get them.

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Why You Should Use Your HSA or FSA Right Now

Why am I telling you to buy stuff right now?

I’m not being insensitive. Yes, I know 6.6 million Americans filed for unemployment last week.

First, Nobody knows how many people will get sick. Predictions are too all over the place for me to give you a solid cited estimation. But if there was ever a time to prepare for the worst and hope for the best, this is it.

Second, These ten items are all deductible from your HSA, FSA, and HRA meaning you’ve already allocated the money for these expenses, you have to use them for qualified healthcare expenses and now is the time to tap into those accounts.

Third, but possibly most important. Try to avoid buying these things from Amazon or Walmart and get them from a locally owned pharmacy or convenience store. This is a way you can support small business without wasting your limited cash flow.

Let me know in the comments where you’re restocking your medicine cabinet and if they have online ordering in case someone wants to support small business but can’t get to one nearby.

How to Buy HSA & FSA Eligible Items

The eligibility of these items is backdated to January 1st, 2020 so if you happen to have the receipts, you can file a claim with your provider and submit those receipts to be reimbursed.

Going forward you can use your HSA or FSA debit card to purchase these items at approved stores or pharmacies or file for reimbursement.

Now onto the 10 things you should be using your HSA and FSA funds on.

1. COBRA Premiums

Being unemployed means losing your employer-subsidized health insurance. COBRA is A federal law that allows you to temporarily keep your health coverage after your employment ends. 

Generally, health insurance premiums cannot be paid from an HSA but COBRA premiums do qualify for HSA reimbursement. If you have an FSA you’re out of luck, the rule doesn’t apply. IF you have an HRA you’ll need to check your plan and see its limitations.

Now, COBRA is your most expensive option because you’re now paying your portion, your employer’s portion and a 2% admin fee but if you need to keep your plan for specific reasons you can enroll in COBRA and pay for it using your HSA account.

The deadline to enroll in COBRA has been extended from 30 days after termination to 60 days so take that time to explore other healthcare options that might be cheaper but this is a last resort option that is available to you. 

2. Aspirin 

Aspirin reduces pain and fever. If you don’t have it in your medicine cabinet or if your aspirin is expired then you’ll want to have some on hand. Fever is the first symptom some people have so you’ll need to have something on hand to relieve it quickly.

3. OTC Pain Relievers

Those are Tylenol, generically known as acetaminophen, Advil aka ibuprofen, and Aleve which is naproxen. The generic bottles are identical to the brand names and cost way less.

Acetaminophen reduces pain and fever, similar to aspirin but aspirin can also reduce blood clots. Ibuprofen is a non-steroidal anti-inflammatory meaning it treats pain by reducing inflammation so it’s more effective on injuries like sprains. And naproxen is also a non-steroidal anti-inflammatory drug but it’s longer lasting than ibuprofen. So ibuprofen is a quick fix and naproxen is better for chronic conditions.

Have at least one on hand

I’m not a healthcare professional but all this information is readily available on WebMD and it’s good to know the difference so you’re not wasting money buying a ton of one medicine when the one right next to it could solve your problem faster and save you money. Ultimately even though they’re over the counter, you need to consult a doctor to see if any of these are bad for you.

4. Cough medicine 

OTC cough medicine. Coughing is another early symptom so you’ll want a fresh bottle of cough syrup or at least a full one that’s not expired.

5. Sore throat pain relief

Get some lozenges or a throat spray to ease the inflammation in your throat.

6. Thermometer and Probe Covers

You need a thermometer. If you want disposable probe covers those are also eligible. 

7. Menstrual Care Products

FINALLY! Tampons, pads, liners, cups, sponges, or similar products used for menstruation.

The next three aren’t essential but If you have everything else and you have a small business you want to support, here are a few more options.

8. Sunscreen, Sunburn Ointment, and Lotion

Newly eligible is suncare that includes sunscreen with SPF and sunburn ointment or lotion. Beaches are closed here in FL but the sun still shines and I have a kiddie pool.

9. Contacts, Glasses, Contact Solution, and Lens Cases

I wear contacts and I am definitely going to be stocking up on contacts and solution. And if you need glasses this year you can use your funds for that.

10. Sales Tax, Shipping, and Handling For All Eligible Items

Last is Sales tax, shipping and handling for all eligible items. This is a great option if you don’t have a small business pharmacy near you or you are in isolated quarantine. If you need anything shipped, can’t find your FSA or HSA card, whatever, all these extra expenses are reimbursable.

Don’t worry.

Those are the 10 items everyone should have. Let me know in the comments where you’re restocking your medicine cabinet and if they have online ordering in case someone wants to support small business but can’t get to one nearby.

And don’t forget to click that button in the lower right corner to get as much helpful information I am physically able to provide. I’ll be doing a few videos a week for the next few months and I’d love to help you if you have any topics you want me to cover.