Ask Penny: Can I use my HSA or FSA to pay for COVID-related healthcare expenses?
February 17, 2021
The COVID-19 pandemic has economically impacted many families through small business closures and job layoffs. The price of treating COVID-related illness has also negatively affected many Americans. One positive is that those with a health savings account (HSA) or healthcare flexible spending account (FSA) may be able to use these funds to cover COVID-related medical expenses. Here are a few helpful FAQs:
Can I use my HSA or FSA for COVID testing?
The passage of the Families First Coronavirus Response Act (FFCRA) on March 18, 2020 means that most people should not have to pay for a COVID-19 test. However, in certain states, rapid (or antigen) tests and antibody tests can be quite costly. Your HSA or health FSA can cover these costs.
Can HSA or FSA fund be used for COVID treatment or hospitalization?
Yes. Public health experts say that 15-20% of people who get COVID-19 and seek treatment may need a hospital stay. The cost of hospitalization for COVID ranges from $34,000 to $45,000, with the highest charges being assessed to individuals aged 51 to 60.
Can I use my HSA or FSA for long-term complications from COVID?
Yes. Even when COVID is “gone,” its effects linger for many patients. Studies have shown that coronavirus survivors who were hospitalized frequently have long-term problems with respiratory dysfunction, reduced exercise capacity, PTSD, and depression/anxiety.
Can HSA or FSA funds cover health insurance premiums through COBRA?
Yes, for HSA funds; no, for FSA funds. HSA funds can be used to pay for COBRA premiums, and they can also be used on group health insurance premiums if the covered individual is receiving unemployment compensation under federal or state law. If you’ve been furloughed or laid off due to the pandemic and are on COBRA, your HSA can cover health insurance premiums. FSA funds cannot be used for premiums.
Can I use my HSA or FSA for the COVID vaccination?
Yes, but you shouldn’t need to. According to the CDC, vaccine doses purchased using U.S. taxpayer dollars will be given to the American people at no cost. However, vaccination providers will be able to charge an administration fee for providing the shot.
What other COVID-related expenses can my HSA or FSA be used to cover?
You can create a COVID-19 tool kit for your home using your HSA or FSA so that you’re prepared. Purchase a variety of items for treating cold and flu symptoms and monitoring health safely at home like:
- Over-the-counter cold and flu medicine – Stock up on pain relievers, fever reducers, cough and congestion relief, nasal sprays, and cough drops
- Non-contact thermometer – These use infrared technology to measure body temperature safely from a distance
- Pulse oximeter – One common COVID symptom relates to reduced oxygen levels in the blood stream, which can cause trouble breathing. Use a pulse oximeter at home to monitor oxygen levels and help tell if you might need to seek medical help.
- At-home virus detection kit – Allows you to take a saliva sample at home, mail it to the lab, and get results online with the option to speak with a doctor about your results.
You can use your HSA or FSA funds to address many of the above concerns. When unexpected healthcare costs strike, as they certainly have during the past year, it can be a great comfort to have money set aside in an HSA or FSA to cover healthcare needs for you and your loved ones.
Keep in mind that you should always consult a medical professional about any questions or concerns you have related to the COVID-19 virus (or any other health condition) to ensure your safety and well-being.