SAN DIEGO (KGTV) — As the year winds down, many people are looking to cash in on their Flexible Spending Account (FSA) health care funds. But as you stare at the shelves at the pharmacy, remember not everything is covered.
The arrival of cold and flu season has kept pharmacies like Proactive Care Pharmacy in Linda Vista busy. But they aren’t just filling medication — they’re also dealing with lots of questions about what’s covered under health care FSA expenses.
This flexible spending account is set up through your employer. It allows you to set aside pre-taxed money to pay for certain out-of-pocket health care costs.
An individual can contribute up to $3,300 in 2025, and those filing taxes jointly can put in a maximum of $6,600.
This fund covers a wide range of costs, from sunblock to childbirth classes, masks and dental and vision expenses.
Pharmacist Manager Anh Pham walks us through popular items.
“You can use it for over the counter items, you can use it for pain relief, cough, cold medicine, allergy medicine, antacid, eye drops, first aid,” Pham said.
It also covers certain medical equipment and at-home tests, such as blood pressure monitors, COVID tests and diabetic supplies.
The U.S. Office of Personnel Management has a website that lists more than 300 items that are covered and not covered.
Pham says even if you aren’t sick right now, it’s best to stock up on items you’ll need year-round to cash in on the funds that are typically non-transferable to the following year.
“Tylenol or Cough and Cold ranges from $5 to $20 maximum, but if you add up those items you can spend a couple $100s a year,” Pham said.
And if you aren’t sure if something’s covered, check with your pharmacist. Pham says they know instantly when they ring up an item.
But you do have to be careful in using the flexible spending account only for items that are approved.
Thomas Boles, the owner of Telesis Tax and Financial, says a mistake could impact tax filing for 2025.
“It needs to be addressed somewhere. Because it’s pre-taxed now it’s been used for not an eligible solution so it needs to go back into the tax piece and have taxation taken out of it,” Boles said.
And if you’re looking to make changes to the amount in your flex spending account, Boles says check with your benefits department, as the changes can be made during your company’s open enrollment.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.