The Ultimate Guide to HSA/FSA Eligible Expenses & Savings Strategies
Why This Matters for You
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) allow you to allocate pre-tax dollars toward medical expenses. While many use them for traditional healthcare expenses, few fully grasp their potential as a powerful tool for long-term health investment.
With healthcare costs soaring and chronic illness on the rise, using HSA/FSA funds for preventive and interventional health isn’t just a smart choice—it’s essential. This guide breaks down what HSA and FSA accounts are, the tax advantages they offer, and how Truemed unlocks your ability to use them to their full potential—empowering you to invest in your health with ease.
Understanding HSA/FSA Accounts
What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged account available to individuals with a high-deductible health plan (HDHP). Contributions are tax-deductible, and funds can be used for qualified medical expenses, including treatments that cure, treat, mitigate, or prevent chronic conditions. HSA funds never expire and roll over each year, allowing them to grow both through annual contributions and investment—helping you build a robust financial foundation for your health, now and in the future.
What is an FSA?
A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows employees to set aside pre-tax dollars for medical expenses. Unlike HSAs, FSAs have a “use-it-or-lose-it” rule, meaning funds must be spent within the plan year or before a short grace period.
HSA/FSA Eligibility
The IRS defines what qualifies as a "medical expense" under HSA and FSA guidelines, typically including costs related to the diagnosis, treatment, mitigation, or prevention of health conditions. This broad definition covers a range of medical products, from prescription medications to essential medical devices like blood pressure monitors and continuous glucose monitors.
Certain interventional health products and services—such as gym memberships, fitness equipment, and recovery tools—don’t automatically qualify for HSA/FSA spending. However, if a consumer has a Letter of Medical Necessity (LMN) from a licensed provider stating that a product or service is necessary to cure, treat, mitigate, or prevent a specific condition, they become eligible to use pre-tax funds. So while the IRS does not explicitly categorize things like exercise or supplements by default as “healthcare expenses”, if a consumer has an LMN for a specific product or service, it unlocks HSA/FSA spend.
Truemed simplifies this process by integrating LMN qualification into checkout, making it easier for consumers to unlock HSA/FSA funds on qualifying purchases.
Examples of Eligible HSA/FSA Expenses
Your HSA or FSA funds can cover a wide range of medical expenses. Below are key categories where and how you may be able to use your HSA/FSA:
Over-the-Counter (OTC) Medications & Health Products
- Pain relievers (e.g., ibuprofen, acetaminophen)
- Cold and flu remedies (e.g., decongestants, cough suppressants)
- Menstrual care products (e.g., tampons, pads, menstrual cups)
- First aid kits and bandages
- Thermometers and pulse oximeters
Mental Health & Preventive Services
- Therapy sessions and psychiatric care
- Prescription medications for mental health
- Smoking cessation programs
- Weight loss programs (if medically necessary)
Fitness & Gym Equipment (Requires an LMN)
- Gym memberships (if prescribed for a specific condition)
- Home exercise equipment (e.g., treadmills, weights)
- Wearable health technology (e.g., continuous glucose monitors, heart rate monitors)
Other or Lesser-Known Eligible Expenses (May require an LMN)
- Red light therapy devices
- Cold plunges and cryotherapy
- Sleep tracking devices
- Posture-correcting wearables
- Compression therapy products
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How to Qualify for HSA/FSA Spend with Truemed
Understanding the HSA/FSA Reimbursement Process
If you pay out of pocket for an eligible expense, you can submit a claim for reimbursement. Follow these steps:
- Keep Your Receipts + LMN (if required) – Retain documentation of your purchase with a detailed receipt and LMN that states eligibility.
- Submit the Claim to Your HSA/FSA Provider – Use their online portal or paper submission process.
- Receive Reimbursement – Once approved, your provider will issue the reimbursement by check or ACH, depending on your HSA/FSA provider.
How to Avoid Losing Your FSA Funds
Unlike HSAs, FSAs often follow a "use-it-or-lose-it" rule. Here’s how to ensure you make the most of your FSA funds:
- Know Your Grace Periods – Some FSAs allow a carryover of up to $660 (2025 amount).
- Focus on Preventative Care - You can qualify to use your FSA funds to buy fitness gear, sleep trackers, and red light therapy tools - make sure you spend your funds before the deadline!
Frequently Asked Questions (FAQ)
How does using my HSA/FSA account save me money?
HSA and FSA accounts allow you to use pre-tax money for eligible health expenses, reducing your taxable income and increasing your purchasing power. Instead of paying taxes on income before spending it on health expenses, qualified customers can use pre-tax funds directly.
What is Truemed?
Truemed partners with merchants and brands to enable qualified customers to use HSA/FSA funds on eligible products and services. By working with a network of licensed practitioners, Truemed simplifies the process of obtaining a Letter of Medical Necessity (LMN) where required, ensuring a smooth and compliant experience.
What is a Letter of Medical Necessity (LMN)?
Some HSA/FSA expenses require an LMN, which is documentation from a licensed provider stating that the product or service is necessary for treating, mitigating, or preventing a medical condition. Truemed helps qualified customers obtain this documentation easily.
Why should I use my HSA/FSA funds with Truemed’s partner brands?
Using HSA/FSA funds with Truemed’s partner brands allows you to maximize your tax-free spending and access qualified health products and services without the complexity of figuring out eligibility on your own.
I don’t have an HSA/FSA. Can I still benefit from Truemed?
Truemed’s services are designed for individuals with HSA or FSA accounts. If you don’t have one, check with your employer to see if you’re eligible to open an account.
I don’t live in the U.S. Can I still get reimbursed with Truemed?
Currently, Truemed is available only in the United States.
Can I use my HSA/FSA for gym memberships?
Yes, but a Letter of Medical Necessity (LMN) is usually required, specifying that the membership is required to cure, treat, mitigate or prevent a specific medical condition.
What happens if I don’t use my FSA funds?
Unused FSA funds typically do not roll over, so it’s important to plan your spending before the year ends
