How an FSA or HSA Can Help New & Expectant Parents

Navigating health benefits can be complex, especially when it comes to Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA). Both offer valuable ways to save on medical expenses using pre-tax funds, but they have distinct differences in how they operate, who owns them, and how the funds can be used over time.

This guide explores the specifics of both FSAs and HSAs to help you maximize your healthcare savings.

What is an FSA?

A flexible spending account (FSA) is a health benefit sponsored by your employer. It allows you to set aside a portion of your paycheck up to an annual limit, and then use those funds towards certain medical expenses, tax-free. Some employers even offer matching contributions.

What is an HSA?

A Health Savings Account (HSA) is a tax-advantaged personal savings account designed for healthcare expenses. Unlike an FSA, which is employer-owned, the HSA is owned by the individual.

To be eligible for an HSA, you must be enrolled in a High-Deductible Health Plan (HDHP). HSAs offer a "triple tax advantage": contributions are tax-deductible or made with pre-tax dollars, the funds grow tax-free, and withdrawals for qualified medical expenses are tax-free.

FSA vs. HSA: Key Differences

While both accounts allow you to pay for qualified medical expenses with pre-tax money, the differences between an FSA and an HSA are significant, particularly concerning ownership, portability, and fund management:

What kinds of things can I buy with my FSA/HSA funds?

You can use both FSA and HSA funds for a wide range of standard medical expenses, such as doctor's visits, prescription and over-the-counter medication, and more.

For pregnant people and parents, many of these common items are also eligible:

• Pregnancy tests & sperm test kits

• OBGYN, ultrasounds, & primary care

• Childbirth classes*

• Prenatal vitamins

• Childbirth expenses such as hospital or midwife fees

• Birth tub rental and TENS unit rental

• Lactation consultant services

• Breastfeeding / Chestfeeding classes*

• Breast pumps & accessories, & breast pump rentals

• Hands-Free Pumping Bras

• Milk storage bags

• Baby care items such as sunscreen, nasal aspirators, and thermometers

*Note that only classes for the pregnant or lactating parent are eligible, so if you are paying a separate registration fee for a partner or support person, their registration would not be eligible.

Are diapers eligible? What about formula?

Unfortunately, no. Diapers and formula are not typically FSA or HSA eligible. However, diapers for an older child that are necessary as a result of a medical condition, with a letter of medical necessity from your pediatrician, would be eligible. In rare cases, special formula that is prescribed by a physician to treat an illness would also be eligible with a letter of medical necessity.

Here are some other items that are not eligible for either account:

• Nursing bras

• Maternity clothing or baby clothing

• Nursing pillows

• Baby carriers

• Cribs, strollers, and car seats

• Parenting, infant care, or CPR classes

• Herbal remedies

What about lactation supplements? Or doula services?

Supplements (except for prenatal vitamins, glucosamine, and chondroitin) are not eligible unless prescribed to treat a specific medical problem and documented with a letter of medical necessity. Doula services are similarly eligible with a letter of medical necessity. To see other Natural Resources items that may be eligible with a letter of medical necessity, check here.

What about Newborn Care or Infant CPR classes?

Newborn Care & Infant CPR classes are generally not eligible for reimbursement with a Flexible Spending Account (FSA) or a Health Savings Account (HSA). These classes are typically considered general health education or training for emergency preparedness, rather than expenses related to a specific medical condition or treatment. Therefore, they do not qualify as a medical expense under IRS guidelines for FSA and HSA reimbursement

What happens if you don't use your FSA funds?

Flexible Spending Accounts are generally "use it or lose it," so you must spend whatever amount you put into it before your plan year expires—unused money typically goes back to your employer. Check with your employer regarding grace periods, carryovers, and deadlines for submitting claims.

Note: Unlike FSAs, HSA funds roll over year after year and remain yours even if you change employers.

Does Natural Resources accept FSA/HSA debit cards?

We are working on accepting FSA/HSA debit cards directly as we do offer a number of classes and products that are eligible for reimbursement through these accounts. In the meantime we can provide you with a detailed version of your receipt that you can use for reimbursement if needed, just let us know!

Browse our FSA / HSA collection to see all the things you should be able to purchase from Natural Resources with your FSA/HSA funds. For additional items that may be eligible with a letter of medical necessity, check here. Always make sure to check with your account administrator if in any doubt!