Can You Use HSA or FSA for LASIK?

The answer is, “Yes!” LASIK surgery is a life-changing investment. And with a tax-free Health Savings Account (HSA) or Flexible Spending Account (FSA), it’s more affordable than you might think. If your employer offers these types of employee benefit accounts, you can pay for your LASIK surgery with pretax dollars — which could mean up to a 20-30% discount depending on your income and tax bracket. Read on to learn more about HSAs and FSAs, and how these accounts can play a major role in funding your LASIK eye surgery.

What Are HSAs and FSAs?

HSAs and FSAs are savings accounts that can help individuals pay for qualified medical costs with pretax dollars. Using funds from these accounts reduces taxable income and helps make procedures like LASIK, PRK or EVO ICL more accessible.

Health Savings Account (HSA) — This is an investment account available to employees or individuals who use a High Deductible Health Plan (HDHP).1 In addition to a predetermined deposit to the HSA each month, you can make additional contributions that are voluntary and tax free.

• • HSA dollars do not expire, even if you change employers, are self-employed or decide to retire. They are also tax deductible, but you cannot spend them before your contributions into the account.

Flexible Spending Account (FSA) — This account enables employees to set aside pretax money for health-care expenses, LASIK included. Unlike HSAs, FSA dollars are almost always time-sensitive, meaning any contributions put toward your FSA account must be spent by the end of your employer’s designated benefits period.2 If you are interested in using an FSA for LASIK eye surgery, there are two important considerations to note:

1. In most cases, your annual allotment can be used on the first day, in its entirety — even though all contributions have not been made. Read your plan details and/or check with your administrator.
2. Determine if your FSA plan allows for a short “grace period” after your company’s enrollment year ends. Funds could potentially roll over into the following enrollment year.

HSAs and FSAs have annual contribution limits determined by the IRS. Employers can elect to lower maximum contribution limits as well. Here’s a breakdown of IRS-set contribution limits over three years to illustrate how limits have been adjusted at a federal level:

Over time, the IRS has allowed individuals to contribute more to these savings accounts. Raising contribution limits each year for HSAs and FSAs helps more people afford medical costs for procedures. So, can you use HSA for LASIK? Absolutely!

How Can You Use an HSA or FSA for LASIK?

The IRS states that LASIK is an eligible or covered expense, meaning you can use HSA or FSA funds for this vision-correction procedure. No matter which account you have, we can help you understand how to use an HSA or FSA for LASIK.

Using an HSA for LASIK:

• LASIK is almost always an anticipated cost — a medical expense that’s expected and one you’ll incur during a year. If you have an HSA or plan on having one, it’s important to save the amount needed for LASIK since you cannot withdraw any amount before it’s contributed. But, because HSA dollars roll over, you can plan to start saving before your vision correction procedure — offering greater flexibility in the long term.

Using an FSA for LASIK:

• If you use a flexible spending account, the total amount of your FSA is often available on the first day of your plan year, so you don’t have to wait until the end to use it for your LASIK costs. However, it’s important to think ahead and plan your procedure before the end of your benefits period to avoid the forfeiture of any funds you’ve contributed.

HSAs and FSAs help lower out-of-pocket health-care expenses and make it easier to pay for LASIK.

Use Your HSA or FSA for LASIK with Providence Eye & Laser Specialists