As open enrollment approaches, it's the perfect time to re-evaluate how you're investing in your health. Recent legislative changes, particularly those stemming from the "Big Beautiful Bill" (often referring to the CARES Act and related legislation), have significantly expanded the utility and flexibility of Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). These aren't just savings vehicles; they're powerful tools that can transform how you manage your health and finances.
Beyond the Basics: What's New and Improved?
Historically, HSAs and FSAs have been invaluable for covering traditional medical expenses like doctor's visits, prescriptions, and dental care. However, the game has changed in exciting ways:
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Over-the-Counter (OTC) Medications are Back! One of the most welcomed changes is the ability to purchase OTC medications without a prescription. This means common essentials like pain relievers, cold and flu remedies, allergy medications, and more are now eligible expenses. This convenience not only saves you money but also simplifies your health management.
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Menstrual Products Are Now Eligible: A long-overdue change, menstrual hygiene products are now universally recognized as qualified medical expenses for both HSAs and FSAs. This is a significant step towards financial equity and better access to essential health items.
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Telehealth Services Remain Covered: The pandemic accelerated the adoption of telehealth, and fortunately, the ability to use your HSA/FSA for virtual doctor visits, online therapy, and other remote health services has largely been made permanent or extended. This enhances accessibility and flexibility in receiving care.
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Increased Contribution Limits (Periodically): While not a direct provision of the "Big Beautiful Bill," the trend of increasing annual contribution limits for HSAs continues. This allows you to save and invest more tax-free dollars for healthcare, bolstering your long-term financial security.
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Expanded Definition of "Medical Care": The spirit of recent legislation has broadened the interpretation of what constitutes eligible medical expenses, moving towards a more holistic view of health. While specifics can vary, it opens the door to considering a wider range of services that contribute to preventative care and overall well-being.
HSAs vs. FSAs: A Quick Refresh
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Health Savings Accounts (HSAs): Think of an HSA as a personal savings account for healthcare, but with triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. HSAs are tied to high-deductible health plans (HDHPs) and are yours to keep, even if you change employers or retire. They can even be invested, acting as a powerful retirement savings tool.
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Flexible Spending Accounts (FSAs): FSAs also offer tax advantages (pre-tax contributions) for medical expenses. However, they are "use-it-or-lose-it" accounts, meaning funds typically must be spent within the plan year (though many plans offer a grace period or a small carryover amount). FSAs are often available with various types of health plans.
Beyond the Doctor's Office: Proactive Health with Brooktree
These expanded rules aren't just about covering sickness; they're about empowering you to invest in a healthier, more vibrant life. This is where Brooktree comes in.
At Brooktree, we believe that true health is about proactive management, personalized strategies, and consistent accountability. Think of us as your personal health accountability and strategy consultants. While the specifics of what your HSA/FSA covers can vary, many of our services — which focus on preventative care, chronic condition management support, and overall well-being — can align with eligible health expenses.
Imagine using your pre-tax dollars for things that truly keep you healthy:
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Personalized Health Coaching: Strategic guidance on nutrition, fitness, and lifestyle directly impacts your health outcomes.
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Disease Prevention Support: Working with experts to mitigate health risks before they become major issues.
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Stress Management Techniques: Accessing resources that improve mental and physical resilience.
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Accountability Partnerships: Ensuring you stay on track with your health goals, leading to fewer medical interventions down the line.
By strategically utilizing your HSA/FSA, you can leverage tax-advantaged funds to not only cover immediate health needs but also to invest in the long-term partnership with Brooktree that helps you avoid future health complications. It's an investment that pays dividends in vitality and peace of mind.
Take Action Now!
As open enrollment approaches, take the time to:
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Talk to your HR/benefits provider early. Review your health plan options and ask whether your plan qualifies as HDHP for 2026, whether they support DPC fees, and whether your employer offers HSA matching.
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Calculate your anticipated health expenses for the coming year to determine optimal HSA/FSA contributions.
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Explore how Brooktree can be an integral part of your preventative health strategy, potentially utilizing your HSA/FSA funds.
- Share this knowledge. If you know someone else who could benefit from these changes, send them this article. The more people who know, the more power we all have in shaping better health-financial habits.
New to Brooktree? Ready to be strategic in your 2026 health plan — and use these updates wisely? Schedule a discovery call with me today. Let’s craft your personalized wellness + HSA roadmap.
Don't let these valuable tax advantages go to waste. Maximize your health and financial well-being by fully understanding and utilizing your HSA and FSA.
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