Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are tax-free accounts that can be used to pay for qualified health expenses. These accounts are usually set up and managed by an HSA or FSA administrator, and you should have access to said HSA/FSA administrator through your employer (ask your HR department!).

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-advantaged account designed to help individuals save for medical expenses. Here are some key features:

• Tax Benefits: Contributions to an HSA are tax-deductible, and withdrawals for eligible medical expenses are tax-free.
• High Deductible Health Plan (HDHP): To open an HSA, you must be enrolled in a High Deductible Health Plan.
• Rollover Funds: Unused funds roll over year to year, allowing you to accumulate savings over time.
• Investment Options: Many HSA accounts offer investment options to grow your savings.

Flexible Spending Account (FSA)

A Flexible Spending Account (FSA) is another tax-advantaged account used to pay for eligible healthcare expenses. Key points include:

• Employer-Sponsored: FSAs are typically set up by employers, and contributions are made through payroll deductions.
• Use-It-Or-Lose-It: Unlike HSAs, FSAs often have a “use-it-or-lose-it” policy, meaning funds must be used within the plan year or a grace period.
• Tax Savings: Contributions are made pre-tax, reducing your taxable income.

United States Eligibility

• HSA Eligibility: To be eligible for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP) in the United States.
• FSA Eligibility: FSAs are available to employees whose employers offer this benefit. Both accounts are available to U.S. residents, providing they meet the specific requirements.

Unfortunately, HSAs and FSAs are not available outside of the US, and self-employed individuals (who do not have an HSA from a previous employment) do not qualify for HSAs or FSAs.

HSA/FSA accounts were created so individuals could use pre-tax money to pay for expenses used to treat, mitigate, or prevent a diagnosed medical condition. Because HSA/FSAs use pre-tax money, you’re getting more purchasing power for your dollars. Rather than pay taxes on income and then spend it on health items, qualified customers can use pre-tax funds to invest in their health. Almost every qualified individual will save between $1,000 and $2,000, depending on their state and tax rate.

Unfortunately, Truemed’s services are for individuals who have HSA or FSA accounts (or plan to fund one during open enrollment). We encourage you to ask your employer about information on your HSA or FSA!

Truemed partners with merchants and brands to enable qualified customers to use HSA/FSA funds on qualified products and services that are used to treat, mitigate, or prevent a diagnosed medical condition. Truemed partners with a network of individual practitioners who evaluate customers’ eligibility and issue Letters of Medical Necessity to qualifying customers, thereby saving customers money on legitimate medical expenditures.

What does Truemed look like in action?

Reimbursement flow video walk through

Payment integration flow video walk through

Yes! You can use your HSA/FSA card. Once you pay with your card and complete the survey, all you need to do is keep an eye out for the Letter of Medical Necessity that we will send you, and hold onto it for the next 3 years.

If you prefer to use your regular credit card, you are welcome to do that and we will send you instructions for how to submit for reimbursement from your administrator. Check out this article to get a comprehensive understanding of the reimbursement process.

In order to determine whether certain products or services are legitimate expenses for treating, mitigating, or preventing a diagnosed medical condition, HSA/FSA plan administrators often require a letter from a licensed practitioner. This letter is called a “Letter of Medical Necessity.”

Generally it takes 24-48 hours. If you aren’t seeing your letter in your inbox, check spam, then reach out to us at support@truemed.com for help!

If you do not qualify, you are able to reapply for HSA/FSA spending at a later date.

TrueRife can split the invoice, but like your normal bank account, you generally need to have the funds to cover the purchase to avoid a rejection.

Contact team@truemed.com so they can help you troubleshoot the issue. HSA/FSA plan administrators often have detailed requirements, so it may be as simple as re-issuing your Letter of Medical Necessity using the administrator’s form.

For most Americans, open enrollment is in the last four months of the year. Simply elect to increase contributions to your HSA or FSA during this time and you can begin shopping with Truemed merchant partners. Starting on January 1st, qualified individuals will be able to spend their entire HSA or FSA amount on products that a licensed practitioner recommends to treat, mitigate, or prevent a specific, diagnosed medical condition. These funds will be pulled from your paycheck, prior to tax withholding, by your HSA/FSA administrator in equal installments through the year.