Make the Most of Your HSA and FSA This Summer

Summer is synonymous with vacations, PTO, and out-of-office messages—but it’s also the perfect time for employees to think about their Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). Many everyday summer essentials are HSA- and FSA-eligible, meaning employees can save money while staying healthy and prepared for the season.

HSA and FSA Key Differences

Both Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) help employees save on medical expenses, but they function differently.

Key differences include:

• HSA funds roll over year to year, while FSA funds are typically "use it or lose it" by the end of the plan year—though some plans allow a grace period or limited carryover.
• Employers and employees can contribute to both HSAs and FSAs. However, with FSAs, employers can only contribute up to a certain amount, and their contribution is based on what the employee contributes. HSAs, on the other hand, allow employers to contribute independently, without being tied to the employee’s own contributions.
• FSAs don’t require an HDHP, whereas an HSA is only available to those enrolled in a high-deductible plan.

For a more comprehensive breakdown of the two accounts, check out our HR Party of One video below!

Summer Essentials You Can Buy with Your HSA or FSA

Many summer must-haves are eligible for reimbursement—here are some top summer items employees can stock up on using their pre-tax dollars:

1. Bandages & First-Aid Supplies

With more time spent outdoors—whether hiking, biking, or playing sports—scrapes and cuts are inevitable. Bandages, gauze, antiseptic wipes, and first-aid kits are all HSA- and FSA-eligible, making it easy to stay prepared for minor injuries.

2. Sunscreen

Sun protection is a must in the summer, and sunscreen is a qualified medical expense under both HSA and FSA guidelines. Employees can also use their funds to purchase SPF lip balm  and even specialized sunscreens for kids or sensitive skin. However, dependent care FSAs (DCFSAs) and limited-purpose FSAs (LCFSAs) do not cover sunscreen purchases.

3. Prescription Sunglasses

Many employees know they can use HSA and FSA funds for prescription eyeglasses and contacts, but they might not realize prescription sunglasses are also eligible! Since reimbursement requires a prescription from an eye doctor, summer is a great time to invest in eye protection for those bright, sunny days.

4. Over-the-Counter Medications

Thanks to the CARES Act, employees no longer need a prescription to use HSA or FSA funds for over-the-counter medications. That means pain relievers (like ibuprofen), allergy medications, antacids, and even cold medicine are all covered—helping employees manage summer allergies and minor illnesses without extra costs.

5. Motion Sickness & Travel Essentials

Planning a summer vacation? Employees can use their funds for motion sickness bands and medication, as well as first-aid travel kits and even heat wraps for muscle relief after long travel days.

6. Bug Bite Treatments & Allergy Relief

Mosquito bites, poison ivy, and seasonal allergies can put a damper on summer fun. Fortunately, anti-itch creams, hydrocortisone, and allergy relief products like nasal sprays and antihistamines are all eligible expenses.

Helping Employees Maximize Their Benefits Before They Expire

Summer’s here, and it’s the perfect time for employees to make the most of their benefits. Many employees aren’t aware of how many everyday items qualify for HSA and FSA use. A simple reminder can help them save money—and boost your retention efforts. With BerniePortal’s benefits administration software, HR teams can simplify communication around FSAs, HSAs, and other employee benefits—ensuring employees know how to make the most of their funds before the seasons change!

Additional Resources

You can stay informed, educated, and up to date with important HR topics using BerniePortal’s comprehensive resources:

• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
• BerniePortal Blog—a one-stop shop for HR industry news
• HR Glossary—featuring the most common HR terms, acronyms, and compliance
• Resource Library—essential guides covering a comprehensive list of HR topics
• HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics
• Community—the HR Party of One Community forum, a place devoted to HR professionals to ask questions, learn more, and help other