How Your FSA or HSA Can Help Save Money when Trying to Conceive

Like saving money? So do we!

 

You may already know expenses related to the birth of a child are eligible for reimbursement with a flexible spending account (FSA) or health savings account (HSA), However, what you may not know is, these savings can start earlier in your baby planning process to take away a little of that financial stress.

Here are 3 commonly asked questions we get about these accounts - who’s eligible, the rules for using one, and how they help keep more money in your pocket now and in the future.

 

1. What are FSA or HSA accounts?

Flexible spending accounts (FSA) and health savings accounts (HSA) allow you to set aside part of your income tax-free for specific health care expenses including deductibles, copayments and coinsurance, monthly prescription costs, and eligible over-the-counter products.

Sometimes, employers will also contribute funds to these accounts. In most cases, you will receive a debit card for your account and can use it to pay for qualifying expenses throughout the year.

These tax-free accounts are becoming more popular as employers and health insurance providers continue to move toward consumer-centric health coverage.  Not sure if you have one? You should ask your employer. It could save you a lot of money especially if you’re expecting a lot of medical expenses (like having a baby, for example).

 

2. What is the difference between an FSA and an HSA account?

While both are accounts that allow you to put away pre-tax dollars, they have some major differences. Simply put, an HSA is a savings account, and an FSA is a spending account. HSAs are usually offered in conjunction with specific health insurance plans (usually labeled high-deductible HSA plan) and are often managed through the health insurance company allowing you to take it with you if you switch jobs, or become unemployed. HSA balances roll over year to year, so you don’t have to worry about losing your savings.

FSA accounts, on the other hand, are usually managed by your employer as a separate health benefit and usually expire at the end of the fiscal year meaning it’s a “use-it-or-lose-it” system. Most fiscal years align with the calendar year causing most FSA benefits to expire on December 31. Money left in the FSA account past the end of the year is returned to the employer as a lump sum. (If you have an FSA, don’t let that happen to you!)

 

3. What Can You Purchase with an FSA or HSA?

As the names suggest, FSA and HSA dollars can be used on a wide-range of health-related expenses. Many over-the-counter medical products such as pregnancy tests and ovulation predictor tests are eligible FSA/HSA purchases. The Trak Male Fertility Testing System has been approved as an FSA eligible purchase and you can use your FSA / HSA debit card on our website to conveniently use your benefits to better understand your sperm health. If you don’t have a debit card associated with your FSA or HSA, most plans allow you to make the purchase with your personal credit card and then submit the receipt to your provider for reimbursement.

If you’re curious about other products you can purchase using your FSA/ HSA account, you can check out the FSA store for a list.

Many plans require you to set up your FSA / HSA account during their open enrollment period (often in the fall). If that’s you, and you’re thinking about trying for a baby as we ring in another year, think about setting up your account now so that you can save some money along your journey to parenthood.