HSA and FSA Eligible Expenses: What You Can Pay For

Figuring out what you can (and can't) pay for with a Health Savings Account (HSA) or Flexible Spending Account (FSA) is one of the most common questions during benefits enrollment, and for good reason. These accounts can save you hundreds or even thousands in out-of-pocket healthcare costs, but only if you use them right. The IRS defines eligible medical expenses under Section 213(d) of the Internal Revenue Code, and both HSAs and FSAs generally follow the same rules, with a few key exceptions.

The short version: you can use HSA or FSA funds for most medical, dental, and vision care expenses that are primarily meant to diagnose, cure, mitigate, treat, or prevent disease. But the details matter, and so does knowing how these accounts work with a program like WellthCare, which rewards preventive care and can save your HSA/FSA dollars for the expenses that really need them.

Eligible Medical Expenses You Can Pay With an HSA or FSA

These are the most common qualifying expenses. The IRS updates this list regularly, so always double-check eligibility for your plan year.

Doctor Visits and Hospital Care

• Primary care, specialist, and urgent care copays and coinsurance
• Hospital inpatient and outpatient services
• Surgery and anesthesia
• Emergency room visits
• Preventive care (screenings, annual physicals, immunizations) – though with WellthCare these may be available at $0 co-pay, saving your HSA/FSA for other things

Prescription Drugs and Medications

• Prescription medications (including insulin and many specialty drugs)
• Over-the-counter (OTC) medicines and menstrual care products – since the CARES Act, OTC items like pain relievers, allergy meds, cold remedies, tampons, and pads are FSA/HSA-eligible without a prescription
• Brand-name and generic drugs prescribed by a provider

Dental and Vision Care

• Dental exams, cleanings, fillings, crowns, bridges, and dentures
• Orthodontia (braces and retainers)
• Eye exams, eyeglasses, contact lenses, and contact lens solution
• LASIK and other corrective vision surgery

Mental Health and Substance Use Treatment

• Psychotherapy, counseling, and psychiatric visits
• Inpatient mental health treatment
• Substance use disorder treatment programs
• Prescription medications for mental health conditions

Medical Equipment and Supplies

• Crutches, wheelchairs, walkers, and canes
• Blood pressure monitors, glucose monitors (and test strips)
• CPAP machines and supplies
• Thermometers, first-aid kits, and bandages
• Hearing aids and batteries

Diagnostic and Preventive Services

• Lab tests, X-rays, MRIs, and CT scans
• Mammograms, colonoscopies, and Pap smears
• Genetic testing when medically ordered
• Smoking cessation programs and nicotine patches/gum
• Weight-loss programs for diagnosed medical conditions (not general fitness)

What Is Not Eligible Under Most HSA/FSA Plans

The list of eligible expenses is broad, but there are important exclusions. Using funds for ineligible items can trigger taxes and penalties.

• Health insurance premiums – You generally can't use HSA/FSA funds to pay for premiums (with a few narrow exceptions like COBRA or Medicare Part B/D for HSA holders)
• Cosmetic procedures – Teeth whitening, cosmetic surgery, liposuction, etc., unless medically necessary
• Dietary supplements – Vitamins, herbs, supplements unless prescribed for a specific condition
• Fitness programs and gym memberships – Not eligible even if doctor-recommended, unless part of a structured, medically supervised weight-loss program
• General health items – Toothbrushes, toothpaste, cosmetic contact lenses, most non-medical toiletries

Key Differences Between HSA and FSA Rules

The eligible expense lists are nearly identical, but the operational differences matter:

• Fund ownership: HSA funds roll over year after year and stay with you even if you change jobs. FSA funds are typically “use-it-or-lose-it” (though many plans offer a carryover of up to $680 in 2026, or a grace period of up to 2.5 months).
• Qualifying for an HSA: You must be enrolled in a High-Deductible Health Plan (HDHP) to contribute. No such requirement for a Healthcare FSA.
• Tax treatment: Both accounts use pre-tax money, but only the HSA can be invested and grow tax-free.
• Coordination with WellthCare: Because WellthCare provides $0 co-pay preventive care and instant Store rewards before you touch your HSA or FSA, your pre-tax dollars go further, covering deductibles, prescriptions, and other out-of-pocket costs instead of everyday care.

The HSA's Second Job: A Retirement Account

After 65, an HSA works like a second retirement account. In 2026, an eligible person can contribute up to $4,400 with self-only HDHP coverage or $8,750 with family coverage, plus $1,000 at age 55 or older. At 65, HSA withdrawals for non-medical expenses are no longer subject to the 20% additional tax; they're taxed as ordinary income, like a traditional IRA withdrawal. Withdrawals for qualified medical expenses stay tax-free at any age.

Using WellthCare's $0 co-pay care and earned Store rewards for today's costs lets an HSA keep compounding instead of being drained by routine care. WellthCare's automatic retirement contributions compound alongside it, and they don't replace it.

How WellthCare Helps You Maximize Your HSA and FSA

One smart strategy: use WellthCare first. Here's how the ecosystem works alongside your HSA/FSA:

1. Free preventive care from WellthCare – Annual checkups, lab work, preventive screenings cost $0, preserving your HSA/FSA for true out-of-pocket needs.
2. Earned store rewards – Complete preventive actions and you get real, spendable dollars at the WellthCare Store. Use them on FSA-eligible items like OTC medicines, first-aid supplies, and home health products without dipping into your account.
3. Automatic retirement contributions – Healthy behaviors automatically build retirement wealth, reducing the long-term financial strain that can push people to tap savings early.
4. Bill review and billing support – WellthCare includes medical bill review and billing support that can catch errors and help lower what you owe, so you'll need less HSA/FSA money to cover them.

The result? Your HSA or FSA becomes a dedicated fund for unexpected medical costs, deductibles, and high-value prescriptions, instead of being drained by routine care. WellthCare, the first Health-to-Wealth Benefit System, achieves this by rewarding every verified preventive action with spendable store dollars and automatic retirement contributions, while providing $0-co-pay care that gets used first.

Practical Tips for Managing Your HSA or FSA

• Keep receipts and documentation – You don't need pre-approval, but hold onto itemized receipts. Your FSA administrator may ask you to substantiate a claim, and the IRS expects records showing HSA money paid qualified medical expenses.
• Use a debit card or pay out-of-pocket and reimburse later – HSA/FSA debit cards are convenient, but some prefer to pay with a credit card for rewards, then reimburse themselves tax-free.
• Plan ahead for the use-it-or-lose-it rule – If you have an FSA, schedule dental cleanings, eye exams, or buy eligible supplies before year-end. WellthCare Store rewards can cover FSA-eligible health products, leaving more of your FSA balance for other costs.
• Don't forget dependents – You can use HSA/FSA funds for eligible expenses incurred by your spouse and tax dependents, even if they aren't on your health plan.

Putting It All Together

HSAs and FSAs are powerful tools, but they work best when paired with a system that reduces your overall out-of-pocket burden first. By using WellthCare's $0 co-pay preventive care and earned rewards, you can reserve your pre-tax dollars for the expenses that need them, and simultaneously build retirement wealth. Healthier employees, smarter spending, less financial stress.