With the passing of the CARES Act in March, your HSA got a lot better. Telemedicine, OTC meds and menstrual care costs don't have to come out of your wallet.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress on March 27th, 2020. This over $2 trillion economic relief package exists to lessen the blow of the economic impacts of COVID-19.
Aside from the stimulus check you might have received, it also included important updates to how you can spend your Health Savings Account (HSA).
Prior to the CARES act, a high-deductible health plan would be considered ineligible for an HSA if an employer waives the deductible for something like virtual appointments. The CARES act has temporarily paused this rule so that HDHPs can cover telemedicine needs without cost to patients who have not met their deductible yet.
This one is a game-changer. Historically, OTC medications were not qualified to be purchased with HSA dollars without a prescription. Thousands of items not previously covered like pain relievers, cold and flu meds, allergy meds, skin remedies, cough syrup, heartburn meds, and more are HSA-eligible. Better stock up now!
Period-having folks: rejoice! Use your HSA to cover your menstrual needs. Pads, tampons, cups, liners and sponges are eligible purchases now. Like we said above, stockpile!
All of the above are incredibly important to living our lives in the midst of a pandemic. While you’re being smart and staying healthy, we’re here to help you do the same with your wallet.
If you want to learn more about the powerful HSA, sign up for First Dollar today.