Is a MedicAlert Medical ID Eligible for FSA/HSA?
More than 300 million Americans have some kind of health insurance, but most programs don’t cover all medical expenses, and some programs barely cover the basics.
Depending on the type of health insurance plan you have and your deductible amount, a MedicAlert medical ID may or may not be covered. If not, there are a number of supplemental insurance options that can help cover the costs.
Two options include a health savings account (HSA) or flexible spending account (FSA).
What is an FSA/HSA health care plan/account?
More than 70 million Americans are enrolled in a high-deductible health plan (HDHP). While monthly premiums for HDHP’s are typically lower, the insured will pay more healthcare costs upfront before the insurance company will pay its share. For 2022, the IRS defines an HDHP as any plan with a deductible of $1,400 or more for an individual or $2,800 or more for a family. Individuals with an HDHP can open an HSA on their own or through their employer to help pay for medical expenses. The employer health plan must be an HSA-eligible high-HDHP.
Individuals who have any type of health plan through their employer can open an FSA to help pay for medical expenses that their health plan may not cover. This may include copayments, deductibles, some drugs, and other health care costs.
For both FSA and HSA accounts, contributions and distributions for qualified medical expenses are not subject to taxes.
What is an eligible FSA or HSA expense?
An eligible expense is a health care service, treatment, or item the IRS states can be paid for without taxes. The list of covered expenses is extensive and includes everything from acupuncture to x-rays.
If you have a condition and need a medical ID, most FSA and HSA plans will reimburse you for the costs of a MedicAlert ID.
What is the difference between an FSA and HSA account?
There are a number of differences between FSA and HSA accounts. The most notable are in qualifications, ownership, contribution limits, rollover limits, and grace periods. The tax benefits for FSA and HSA accounts are basically the same, but HSA’s carry an additional requirement.
According to Forbes Advisor and United Healthcare, the key differences between FSA and HSA accounts include:
Qualifications
- FSA: You qualify to participate in an FSA if your employer sets up a plan on your behalf.
- HSA: You can set up an HSA independently or through your employer. Generally, you must have an HDHP to qualify.
Account Owner
- FSA: Your FSA is owned by your employer, but it’s your money.
- HSA: Your HSA account is owned by you and it’s portable, which means, if you have an HSA with your employer and separate from your job, you can take your HSA funds with you.
Tax Benefits
- FSA: Contributions made to an FSA are tax-free, therefore amounts are not subject to payroll or income taxes. Distributions made for qualified medical expenses are not subject to taxes.
- HSA: Contributions made to an HSA are tax-free or tax-deductible. Distributions made for qualified medical expenses are not subject to taxes. If your HSA distribution is not used for qualified medical expenses, an additional tax of 20% will be assessed.
Contribution Limits
- FSA: For 2022, you can contribute up to $2,850. For married couples, both you and your spouse can each have your own FSA through your respective employers and both can contribute the maximum amount to each account, for a total of $5,700 per household.
- HSA: For 2022, you can contribute up to $3,650 for individuals or up to $7,300 for families. HSA limits include both employee and employer contributions. Over the age of 55, you can contribute up to an additional $1,000 at the end of the year.
Rollover Limits and Grace Periods
- FSA: The IRS limits the rollover to up to $550 per year. An extended period may allow you to use your FSA funds up to an additional 2.5 months after the end of the year.
HSA: There is no limit to when you can use your HSA funds. Unspent funds transfer to the next year. You are allowed to roll over your HSA funds from one provider to another every 12 months.
How do I buy a MedicAlert ID with my FSA or HSA?
You may be able to use FSA or HSA funds for a MedicAlert ID. Check with your FSA or HSA administrator to make sure your proposed expenses are eligible. A list of qualified expenses is also published in the most current IRS Publication 502, Medical and Dental Expenses. While MedicAlert doesn’t accept the FSA debit card, we can issue a receipt that can be submitted to your insurance company for reimbursement. In order to receive reimbursement, it is important to follow insurance company protocols for submitting claims.
How do you become a MedicAlert member?
Becoming a MedicAlert member is easy. All you have to do to get started is select a protection plan from our list of flexible options. One of the most popular plans is our Advantage Plus protection plan. Advantage Plus provides:
- 24/7 emergency response team to relay vital information to first responders, ensuring safe and accurate care.
- Digital health profile of all medications, treatment plans, and other vital information – all in one place.
- Designated physician and emergency contact notification.
- Personal document storage.
- Printable detailed profile for your medical appointments.
With a MedicAlert ID and protection plan you will always have a voice if you are unable to communicate critical information about your conditions, medications, and treatment plans to first responders, doctors, and hospital staff in an emergency. To become a MedicAlert member, visit our MedicAlert membership page and select a plan that’s right for you.
What should you engrave on a MedicAlert ID?
MedicAlert medical IDs come in all shapes, sizes, and styles. A MedicAlert ID can be a necklace, bracelet, wallet card, shoe tag, or smart medical ID card. The front of a MedicAlert ID features our emblem, which is recognized by first responders around the world. Our bracelets, necklaces, and other medical IDs can protect you 24/7 by relaying your vital medical information to healthcare professionals, ensuring accurate treatment during an emergency.
All MedicAlert medical IDs feature free custom engraving or a QR code encrypted with your vital medical information. Engraving should include emergency contact information and any critical medical information that can help protect and save your life if you are in an accident or other medical emergency. In general, you should include the following information on your MedicAlert ID:
- Medical conditions.
- Medications.
- Emergency contact information.
- Designated physician contact information.
Visit MedicAlert IDs to select a medical ID that’s right for you!
Sources: Forbes Advisor; GoodRX Health; Healthcare.gov/FSA; Healthcare.gov/HDHP; IRS.gov; Lumity Inc.; National Library of Medicine (NLM)-National Center for Biotechnology Information (NCBI); United Healthcare; U.S. Census Bureau; Wisconsin Department of Employee Trust Funds.
