Key takeaways:
- Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) cover a wide range of vision expenses, including prescription glasses, contact lenses, eye exams, and vision correction surgeries, even without vision insurance.
- Every dollar employees spend from their HSAs or FSAs on eligible vision care is tax-free, helping reduce out-of-pocket costs.
- Using an HSA or FSA for vision purchases is simple: pay with a benefits card at any reputable retailer, or submit a reimbursement form with the receipt.
June 27 is National Sunglasses Day, in case you need a reason to throw a party or an excuse to wear your favorite shades. In honor of this very specific holiday, we’re scoping out all things eyewear, from frames and contact lenses to eye exams and vision correction surgeries. This includes a guide to how a health savings account (HSA) and flexible spending account (FSA) can help you pay for eligible vision care expenses.
Can I use my HSA for glasses? We get this question a lot. Read on to see how to save and spend wisely on prescription eyeglasses and more.
Can employees use an HSA or FSA for vision care?
Yes. Employees can use an HSA or FSA to pay for many eligible vision expenses, often even if they don’t have vision insurance, as long as the purchase meets qualified medical expense rules (or eligible healthcare expense rules for FSA) and, when required, they have a vision prescription.
If you support benefits questions during open enrollment or throughout the year, this is a great place to build confidence on vision benefits. Vision expenses come up often, and the rules are usually simpler than people expect.
What vision expenses are typically eligible?
In many cases, employees can use their HSA or FSA for:
| Eligible vision expense | What to know |
|---|---|
| Prescription glasses and prescription sunglasses | Requires a prescription |
| Contact lenses | Prescription only, non-prescription contacts are ineligible |
| Reading glasses | Over-the-counter, no prescription needed |
| Eye exams | Routine exams typically qualify |
| Vision correction surgeries | Qualifying procedures may be eligible |
| Prescription monocles | Requires a prescription |
Some providers also reimburse for blue light glasses. If an employee spends long hours on screens and wants non-prescription lenses, encourage them to confirm eligibility before buying.
What vision expenses aren’t covered?
Some vision purchases and services don’t qualify. The safest, most employee-friendly approach is simple: have employees check the “typically not covered” list before they purchase, then save their documentation in case they need to substantiate the expense later.
Check here for items that are typically NOT covered.
Why should employees use an HSA or FSA for vision expenses?
HSAs and FSAs are tax-advantaged accounts. When employees use them appropriately for qualified medical expenses or eligible healthcare expenses respectively, they can pay eligible costs tax-free,1 which helps stretch their healthcare dollars, especially for items that health insurance may not cover.
HealthEquity data also shows how common this is in real life: about 25% of dollars spent from HealthEquity HSAs and HRAs (based on card transactions) go toward dental and vision expenses.
How can employees use their HSA or FSA to buy eyewear?
You can coach employees through a simple process:
- First, make an appointment with your vision care provider to make sure your vision prescription is accurate.
- When you’re ready, place your order and use your HSA or FSA card like a credit card.2 If you don’t have a card, you’ll need to pay using a different method, then submit a reimbursement form to your health insurance provider along with a receipt.
- That’s all! You can get eyewear through any reputable store online or retail, just be sure that the item(s) you plan to get reimbursed are eligible.
What if an employee has an LPFSA?
Just like HSAs and FSAs, a Limited Purpose Flexible Spending Account (LPFSA) is a tax-advantaged account that employees can use on eligible dental and vision expenses. But unlike HSAs which carryover, you typically only have one year to spend your LPFSA money before it goes away.
How can employees maximize an HSA and LPFSA together?
Many employees can pair an HSA with an LPFSA to increase tax savings. Here’s a practical rule of thumb you can share.
| If you want to… | A practical approach |
|---|---|
| Cover today’s eligible vision and dental expenses | Use your LPFSA first |
| Save for future healthcare costs | Let your HSA funds grow for later expenses |
| Maximize tax savings across both accounts (when allowed) | Use the LPFSA now, and save the HSA for later |
What’s the simplest next step you can offer employees?
Point employees to an eligibility list before they shop, remind them to keep receipts, and encourage them to ask questions early. Whether they’re in need of prescription sunglasses, eyeglasses, or even blue light glasses for computer work, HSAs and FSAs can make out-of-pocket costs more affordable for employees.
