It’s no secret that medical care can be costly, especially when going through the stages of fertility, pregnancy, delivery, and postpartum. And since we’re here to support you every step of the way along your mamahood journey, we wanted to make sure you knew about one way to save some pennies on certain essentials for this exciting, but expensive phase of life.
We’re talking about FSA and HSA accounts. Here’s what they are and how you can use them.
What is an FSA/HSA?
Flexible Spending Arrangements (FSA) and Health Savings Accounts (HSA) are government-established tax-advantaged accounts that can often be used with qualified insurance plans to help pay for eligible healthcare expenses.
Both FSAs and HSAs have the benefit of reducing healthcare costs by allowing you to use pre-tax income on certain health-related expenditures. That means they help reduce your taxable income so that you pay less taxes overall. They’re similar, but have a few key differences:
- FSA: an FSA account is a benefit offered by certain employers to their employees. You'll need to check if your employer or your partner’s employer offers this and then choose to opt in with a chosen amount to deduct from each paycheck. It’s important to note that the funds you set aside don’t roll over from year to year - use them or lose them!
- HSA: an HSA is a medical savings account that is available to those who have enrolled in a high-deductible insurance policy. Like an FSA, you can choose how much to set aside for medical expenses. Unlike an FSA, self-employed taxpayers with high-deductible insurance policies can also create an account - you don’t need to rely on an employer to offer this benefit. Also unlike an FSA, funds placed into an HSA account can roll over from one year to the next. Note that if you are eligible for Medicare, Medicaid, or are claimed as a dependent on another person’s tax return, an HSA will not be available to you.
What pregnancy products and services are eligible for reimbursement?
HSAs and FSAs are meant to cover “qualified medical expenses” as defined by the IRS. This includes things like prenatal appointment copayments, deductibles, and other health-related expenses. When it comes to pregnancy-related expenses, the following are considered eligible:
- Breast pumps and supplies
- Diagnostic devices
- Pregnancy tests
- IVF and other fertility procedures
- Ovulation tests
- Prescribed medicines
- Vitamins "recommended by a medical practitioner as treatment for a specific medical condition"
Here’s a full list of qualified medical expenses covered by FSA and HSA.
Which Needed Products are covered by FSA/HSA?
Of course, we always recommend reviewing your individual plan, but according to the IRS, Needed’s Prenatal Multi is eligible for coverage.
Our Omega-3, Collagen Protein, Iron, and Pre/Probiotic may also be eligible. If your plan does not automatically accept them, you will need to take the extra step of obtaining a Letter of Medical Necessity from your provider with the following:
- Your Name
- Specific diagnosis/treatment needed (e.g., pregnant with low Iron)
- Duration of the treatment (e.g., duration of pregnancy or breastfeeding - note it cannot exceed 12 months)
- Signature of a licensed practitioner.
- Written on a provider’s official letterhead, prescription pad, after-visit summary, or discharge papers
Some providers have a standard form they can provide, but if not, just ask your provider to draft this for you.
How do you use your FSA/HSA money?
You can generally use your FSA/HSA money in two ways:
- Make your purchase directly with an FSA/HSA debit card (if provided) when checking out. If you have trouble doing so on our website (all plans are slightly different), follow option 2 below.
- Make your purchase, save your receipt, and submit the claim through your insurance provider’s system. Plans vary in the documentation required for reimbursement, but most just require a receipt of purchase of the qualifying item (email confirmation or paper receipt). Occasionally, you may also be required to provide an itemized receipt of your purchase along with a medical letter of necessity. We suggest logging into your provider's online portal (or calling them) for specific instructions.
If you have any questions or specific requests regarding your HSA/FSA-eligible Needed purchases, please contact us at hello@thisisneeded.com.
Timing guidelines for FSA /HSA reimbursement
Since FSA funds expire at the end of each year, we recommend filing as soon as your purchase is made. Time limits vary with individual plans - some plans only give you until the end of your plan year while others give you a bit of a grace period into the new year as long as your receipt is dated for the plan year.
HSA plan accounts can roll over from year to year, so there is no time limitation on when reimbursement claims must occur. Of course, the sooner you file your claim, the sooner you get your money back, and the less likely you are to forget to submit your claim at a later date. One important note on HSA accounts is that you can not reimburse yourself for expenses that occurred before your HSA account was open.
Plan for next year
Now that you know that some of these pregnancy and postpartum expenses are covered, consider increasing your FSA/HSA election so that as much of your prenatal and postpartum supplements and accessories are covered!
