Does LASIK Count As An Eligible Expense for FSAs or HSAs?
You can use your FSA or HSA for LASIK surgery?
By far, the most common question we get from potential LASIK patients is, “How much does LASIK cost?”
It’s a question we expect. And it’s one you should ask, especially since there are lots of LASIK practices offering varying price points.
But when it comes to your eye health, price shouldn’t be your only consideration. Just because having the surgery is cheaper somewhere else, remember that cheaper doesn’t mean it’s better. You should definitely expect to spend thousands of dollars one way or the other — an upfront investment with long-term benefits.
So instead of focusing on cost, we suggest asking yourself, “How will I pay for LASIK?” It’s another version of the “how much does LASIK cost?” question.
The good new about paying for LASIK is that you’ve got lots of options. We like FSAs and HSAs the best.
What’s the difference between an FSA and an HSA?
FSAs and HSAs are typically offered by your employer as part of your benefits package. Each lets you use pre-tax money for specific out-of-pocket health and medical expenses (you can see a list of qualifying expenses here). Spoiler: LASIK is on the list!
Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are one of the most popular financing options for LASIK (aside from personal savings, credit cards, or utilizing discounts.)
Can you carry over FSA or HSA balances?
Those with an HSA have a little more flexibility than those with an FSA. As we’ve mentioned in other posts, HSAs can be used any time, while your FSA may have a “use it or lose it” timeline attached.
The IRS allows HSA funds to “roll over” to the following year, while FSA rules give a hard deadline for the funds to be used up — typically, by the end of March. These rules will impact when you should schedule your LASIK surgery.
It’s important to understand which option is best for your situation, so consult with your financial advisor if you have questions.
Are there contribution limits to an FSA or HSA?
Short answer: Yes. Though, they may change slightly from year to year, so you’ll want to check the healthcare.gov site if you’re unsure.
For 2020 (when this post is being published), the government has set the following contribution limits on HSAs:
- $3,550 for an individual
- $7,100 for a family
The following contribution limits apply to FSAs:
- $2,750 for an individual
- $5,500 per household (If both spouses have an FSA)
You’ll need to weigh those amounts against the potential costs of LASIK. Here at Grene Laser, we currently charge, $2,045 per eye ($4,090 total), so plan accordingly.
Will my FSA or HSA cover the cost of my LASIK procedure?
Depending on how much your LASIK procedure costs, the time of year, and whether or not you’re using an FSA or HSA, there’s a strong chance of covering the entire cost. Of course, circumstances vary.
What are the benefits of using my FSA or HSA for LASIK?
Using pre-tax money is a great way to pull off a savings double-whammy.
Not only does LASIK give you an immediate and lasting return on your investment, but the tax savings can make it an even better investment than you might think.
In some cases (depending on your tax bracket), you could be saving up to 40% when using your FSA or HSA!
Does Grene Laser offer any financing option other than HSAs or FSAs?
Even if your FSA or HSA funds don’t cover the total cost of your surgery you may have the opportunity to pair your funds with eye insurance (potentially another 15% off, depending on your plan).
You can also sign up for simple financing terms to cover the rest.
We do offer financing through a special credit card program called CareCredit. To read more about CareCredit, you can check out their website here. If you qualify, you’ll receive 12 months interest-free.