Using HSA, HRA, and FSA Accounts

What Is the Purpose of HSA, FSA, and HRA Accounts?

The purpose of Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs) is to help individuals and families pay for healthcare expenses using tax-advantaged dollars.

These accounts are designed to make healthcare more affordable and more predictable.

Advantages of HSA, FSA, and HRA Accounts

Reduce Your Tax Burden

The money is moved into the account before taxes are taken out of your paycheck. Which lowers the amount of income you pay taxes on.

Offset Out-of-Pocket Healthcare Costs

Instead of paying this money out of your after-tax income, you use designated healthcare funds.

Prepare for medical costs and spend smarter

It helps you set aside money for both planned and unexpected health expenses, while also making you more aware of what healthcare really costs.

How to Check If an Item Is HSA or FSA Eligible

Below is an example of how an item may appear online.

Many retailers will clearly label products as “HSA/FSA Eligible” directly on the product page. This tag helps you quickly identify items that typically qualify under IRS guidelines.

When you see this label, it generally means the item meets standard eligibility requirements. However, final approval still depends on your specific benefit plan.

IRS Reference for Medical Expense Deductions

For detailed guidance on medical and dental expenses that may be deductible if you itemize, click here.

Quick List of Typical HSA/FSA Eligible Items

While eligibility varies by plan, see common qualifying medical eligible items here.

Menstrual Care Products Now Eligible Under HSA & FSA Accounts (Expanded by the CARES Act)

In 2020, Congress passed the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).

This law permanently expanded what qualifies as an eligible medical expense under IRS rules for HSA, FSA, and HRA accounts.

Two important changes:

Many over-the-counter medications no longer require a prescription to qualify.
Menstrual care products were added as qualified medical expenses.

This means items such as tampons, pads, liners, menstrual cups, and similar products can be purchased or reimbursed using HSA, FSA, or HRA funds — without a prescription.

This expansion recognized that everyday healthcare needs should be treated as legitimate medical expenses under benefit plans.

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