If your employer offers the option to participate in an HSA, you could save money on your contact lenses every year using HSA funds! Here’s how:
What are HSAs?
HSA is an acronym that stands for “Health Savings Account.” This account, offered by your employer, allows you to save money from your paycheck before taxes. This un-taxed money can only be used for medical expenses. HSAs are only available to people who are part of a High Deductible Health Plan (HDHP). If you’ve also heard of an FSA (Flex Spending Account), the accounts are similar but differ in their contribution and carry-over rules.
If you participate in an HSA, you have the option to save thousands of pre-tax dollars each year. For example: If your tax rate is 25% a year and you decide to save $4,000 for your family in an HSA you are gaining an extra $1,000 by designating the money as HSA funds. Note: The individual savings limit is closer to $3,350, but families can save over $6,000. If you didn’t participate in an HSA, the $4,000 from your original paycheck would only amount to $3,000 in take-home pay because of income tax.
You can spend HSA funds on contact lenses and optical expenses, including your annual eye exams, back-up glasses and any eye related prescriptions. If you think about your HSA as a bonus $1,000, every year, you can consider your contact lenses paid for (plus some extra)!
What are some extra ways to save money with an HSA?
Just because you are using your HSA funds to pay for your optical needs doesn’t mean you have to pay full price. If you want to make that money stretch even further, consider joining the Eyecare Club at America’s Best. By becoming a member, you get discounts on contact lenses and free contact lens exams every year for three years (up to 2 exams per year).
There are even more ways to save with your HSA funds! If you’re an Eyecare Club member, you’ll pay the lowest price possible when you buy lenses for the whole year. You’ll also save another 10% on the cost of those lenses, maximizing your HSA funds.
Don’t know if you have an HSA? Ask your employer about enrolling in a Health Spending Account at your workplace.