Can I Use My HSA or FSA for LASIK Surgery?
Yes. With a tax-free Health Savings Account (HSA) or Flexible Spending Account (FSA), you can pay for your LASIK surgery with pre-tax dollars, which could mean a 20-30% discount for those who are eligible.
Employer HSAs or FSAs are a popular way to reduce the cost of LASIK surgery. Participating employees are able to set aside pre-tax dollars for LASIK surgery and other approved medical expenses. Depending on income level, you can save up to $1,200 a year with certain HSAs or FSAs. A key piece of information to remember is that FSA dollars are time sensitive. Any contributions you put toward your FSA account usually must be spent by the close of your employer’s next enrollment period. When a patient is interested in utilizing a FSA for LASIK eye surgery, there are two points of interest to check on:
- In most cases, your entire annual allotment can be used in its entirety if desire on the first day of the plan year even though all contributions have not been made. Read your plan details and/or check with your administrator.
- Determine if your FSA plan allows for a short “grace period” after the end of your company’s enrollment year where funds can “roll over” into the following enrollment year.
HSA accounts are a little different in that those dollars do not expire.
Reduce the Cost of LASIK Surgery with Your HSA or FSA
Common Questions about Flexible Spending Accounts (FSA)
We know, FSAs can be confusing, but leveraging a Flexible Spending Account (FSA) is a great way to pay for LASIK surgery. Whether you have unused FSA dollars you need to use before they expire, or you want to enroll for an FSA account for the coming year, now is the time to start planning if you want to cover your LASIK surgery costs.
How Does an FSA Work?
If you enroll in an FSA, it allows you to use pre-tax dollars to pay for medical procedures like LASIK surgery. Predetermined FSA contributions are deducted from employee paychecks throughout the year before they become subject to payroll taxes. Not only can this save you from paying more at the doctor’s office (anywhere between 20-30% on the total LASIK surgery costs), but it also reduces your annual tax liabilities.
Typically, the full amount of your FSA is available to you in the first day of your plan year, so you don’t have to wait until the end to use it for your LASIK costs. Additionally, some FSA plans allow for a short “grace period” after the end of your company’s enrollment year where funds can “roll over” into the following enrollment year. So, if you haven’t used your FSA yet, you should consider that as an option.
Is There a Cap on FSA Contributions?
You should also keep in mind that since January 1, 2013, a federal limit was set for FSA contributions, capping them at $2,500 per enrollment year.
Still, leveraging an FSA is often the best option for qualified candidates looking for a way to cover LASIK costs. If you are not sure if you are a good candidate for LASIK surgery, schedule a free consultation with LASIK surgeon Dr. Mozayeni at Providence Eye & Laser Specialists before you make your plans for enrollment. Approximately 20% of those who come to Providence Eye are deemed not a good candidate for laser vision correction surgery, so having that information beforehand is vital to your FSA planning.
Tips for Using HSA or FSA on LASIK Surgery
- Be sure to check with your HR department for enrollment deadlines in your company’s HSA or FSA benefits, as well as to gain clarification on the approved uses for your FSA to ensure LASIK surgery is included.
- Do some research on the FSA plans available to you. Do they have a grace period? Can you use the full amount before you have contributed the full amount?
- Schedule a complimentary consultation with Dr. Mozayeni to find out if you are a candidate for LASIK surgery before you transfer money into a medical savings account.
- Ask questions. At Providence Eye & Laser Specialists, our staff and doctors are ready to help find answers to your questions, so you can take full advantage of your HSA or FSA.
Don’t have a HSA or FSA account? LASIK is still considered a tax-deductible expense. Read our blog about LASIK Surgery as a tax deduction.