vitamin D level checked or hormones tested,” Dr. Bhuyan advises.
Utilize Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
Both FSAs and HSAs can offer significant tax savings for individuals and families with medical expenses. However, it is important to understand the rules and limitations of each type of account to maximize their benefits.
Health Savings Accounts (HSAs):
- HSAs are tax-advantaged savings accounts available to individuals enrolled in high-deductible health plans (HDHPs).
- Contributions to HSAs are tax-deductible, and withdrawals are tax-free when used for qualified medical expenses.
- HSA funds roll over year to year if not spent, and the account is portable, meaning it stays with you even if you change jobs or health plans.
- HSAs can be used to pay for a wide range of medical expenses, including deductibles, copayments, and coinsurance, as well as some expenses not covered by insurance, such as vision and dental care.
“For those with insurance, having a health savings account (HSA) can be beneficial. HSAs allow for tax-free savings for healthcare expenses and can be used for retirement savings as well,” Dr. Ramas notes.
Flexible Spending Accounts (FSAs):
- FSAs are tax-advantaged accounts set up by employers that allow employees to set aside pre-tax dollars to pay for eligible medical expenses.
- Unlike HSAs, funds in an FSA generally do not roll over from year to year (though some plans may offer a carryover or grace period).
- FSAs can be used to pay for a variety of medical expenses, including deductibles, copayments, prescription medications, and certain medical supplies.
- FSAs can also be used for dependent care expenses, such as daycare, preschool, and summer day camp costs, for children under the age of 13, or for disabled dependents.
“FSAs are flexible spending accounts and health savings accounts. So those are accounts that are intended to help us with medical costs that might not be covered by insurance,” Dr. Bhuyan notes. This includes things like glasses or contacts or even sunscreen.
“A letter of medical necessity can help you use your HSA or FSA dollars for even things like massage therapy or a gym membership, as long as the massage therapy and gym membership have a medical indication,” Dr. Bhuyan adds.
Save Money for Health Costs
Saving money for a rainy day sounds like a no-brainer, however, many people neglect this step in terms of health costs.
Even if you don’t have insurance, Dr. Ramas suggests saving money from each paycheck for health expenses.
Not sure where to start? Dr. Ramas suggests starting small. “Even setting aside a small amount, like $10 or $20 per paycheck, can make a difference in covering health expenses,” Dr. Ramas shares.
You can also save by attending community health centers and federally qualified health centers, which often provide quality care at reduced costs.
Consider Generic Medications
If you are taking regular medication, one effective way to cut down on costs is by opting for generic medications, which Dr. Bhuyan ensures work just as well as name-brand medications.
Dr. Bhuyan also suggests exploring 90-day supplies for medications, which tend to be cheaper than 30-day supplies.
Try Pill Splitting
Another option you might consider exploring with your doctor is pill splitting, which involves