A flexible savings account (FSA) is a type of savings account used for healthcare expenses that lets you set aside pretax funds for future use.
Medical ID bracelets are included in the healthcare expenses that can be paid with FSA funds.
Here’s a quick rundown about FSAs and how to use your FSA to pay for your medical ID.
Starting and Contributing to an FSA
An FSA is started through your employer, and the funds will be deducted automatically on a pretax basis that you receive. Anyone can contribute to an FSA if your employer offers it. The maximum annual amount that can be contributed during a plan year is $3,200 in 2024 for an individual and $5,000 for household or dependent FSAs. If you choose to leave your employer, you cannot bring the funds in your FSA with you.
The funds in an FSA reset at the end of each year, meaning that you must spend your money within the plan year or lose it when the plan resets at the end of each year.
FSA vs. HSA
Like an FSA, a health savings account (HSA) is a type of savings account used for healthcare expenses that allows pretax funds to be contributed for future use. Unlike an FSA, the money in an HSA rolls over from year to year. The maximum amount that can be contributed annually in 2024 is $4,150 individually and $8,300 for family coverage.
HSAs are not employer-dependent; the availability is instead determined by whether you have a high-deductible HSA-eligible healthcare plan. The funds in an HSA are yours and will go with you if you leave your employer.
Paying for Medical Expenses with an FSA
There are three primary ways to access the funds in your FSA. You can make payments through your online portal, pay directly with your debit card, or submit receipts for reimbursement after using another initial payment method.
The flexibility makes it easy to pay for a variety of medical devices, and prescriptions are not required to pay for medical expenses or devices with FSA funds.
Examples of items that FSA funds can pay for range from medical IDs to allergy medication to acupuncture. You can see a full list of eligible FSA expenses by clicking here.
At American Medical ID, it’s easy to select a medical ID that allows you to utilize your FSA funds.
