HSA/FSA
A Sound Investment: Are Hearing Aids HSA/FSA Eligible?
Health insurance generally doesn’t cover the cost of hearing aids. Luckily, you can save with your HSA or FSA.
July 15, 2024
Sam O'Keefe
Co-founder & CEO of Flex
Overview
Overview
Overview
Overview
Have you heard this? More than 1 in 10 adults in the U.S. experience some level of hearing loss, and that number jumps to above 50% for adults over 75.
You may also be surprised to learn that loss of hearing can leave you feeling more than just out of the loop, in fact, it is connected to social isolation, walking and balance problems, and even dementia.
Luckily, devices like hearing aids can help improve hearing and your quality of life. While they can be a significant investment, there might be a way to make them more affordable: your FSA or HSA.
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
What We’ll Cover About Paying for Hearing Aids with Your HSA or FSA
What hearing aids are and how they work
Are hearing aids covered by insurance?
The cost of hearing aids
Different types of hearing aids
How HSAs and FSAs work and what qualifies an item for being eligible
Are hearing aids HSA/FSA eligible?
Which kinds of accessories for hearing aids are HSA/FSA eligible
How Flex can help you purchase hearing aids with your HSA/FSA
What Are Hearing Aids?
First things first, hearing aids are sophisticated electronic devices that amplify sound.
They consist of three primary components: a microphone that picks up sound, an amplifier that increases the volume of the sound, and a speaker that delivers the amplified sound into the ear.
What causes loss of hearing?
Hearing loss can be caused by many different things, including:
Aging: Age-related hearing loss, known as presbycusis, is common and affects the ability to hear high-frequency sounds.
Exposure to loud noise: Prolonged exposure to loud noises can damage the hair cells in the inner ear, leading to noise-induced hearing loss.
Ear infections: Chronic ear infections can damage the structures of the middle ear. This can cause conductive hearing loss.
Genetics: Hereditary factors can play a significant role in the development of hearing loss. Over half of all childhood hearing loss is caused by genetic factors.
Head Injuries: Trauma to the head can damage the auditory pathways, resulting in hearing loss.
Ototoxic Medications: Certain medications can cause hearing loss as a side effect.
What are the different types of hearing aids?
Hearing aids come in various styles, each catering to different degrees of hearing loss and user preferences. The main types you need to know about include:
Behind-the-Ear (BTE): These hearing aids are worn behind the ear and connected to an earmold inside the ear canal. They are suitable for all types of hearing loss and are known for their durability and ease of handling.
In-the-Ear (ITE): ITE hearing aids fit entirely inside the outer ear. They are larger than some other styles, making them easier to handle, and are suitable for mild to severe hearing loss.
In-the-Canal (ITC): These devices fit partly in the ear canal and are less visible than ITE aids. They are suitable for mild to moderate hearing loss.
Completely-in-Canal (CIC): CIC hearing aids are almost invisible as they fit deep inside the ear canal. They are suitable for mild to moderate hearing loss but may not be suitable for those with severe hearing loss or dexterity issues.
Receiver-in-Canal (RIC): Similar to BTE hearing aids, RIC devices have the receiver placed in the ear canal, making them smaller and more discreet. They are suitable for mild to severe hearing loss.
What to look for in hearing aids?
When choosing the right hearing aids for you, consider the following 7 factors:
Comfort and fit: Make sure the hearing aids fit comfortably and securely.
Sound quality: Look for devices that offer clear, natural sound.
Battery life: Consider the battery life and whether the devices use rechargeable or disposable batteries.
Noise reduction capabilities: Go for hearing aids with advanced noise reduction features.
Bluetooth connectivity: Some hearing aids offer Bluetooth connectivity for streaming audio from devices.
Price and warranty: Compare prices and check for warranty coverage.
Professional fitting and adjustments: Ensure the hearing aids can be professionally fitted and adjusted for optimal performance.
Considering how common hearing loss is and the important role hearing aids play, let’s review how you may be able to pay for them.
Are Hearing Aids Covered by Insurance?
When it comes to health insurance, hearing aids often find themselves in a grey area. Many insurance plans do not cover the cost of hearing aids, although they do cover the expense of diagnostic tests that identify hearing loss.
A revealing hearing tracker survey indicates that three in four respondents received no coverage for hearing aids through their health insurance or Medicare. This statistic highlights a significant gap in coverage for a condition that affects about 1 in 3 adults over 65. As a result, many need to shoulder the full cost themselves.
There are some exceptions, though. Medicaid, the Department of Veterans Affairs, and some private insurance offer coverage, while charities and workers' compensation might also provide financial assistance for those who qualify.
This limited assistance, similar to what you find with dental care, underscores the importance of alternative financial strategies for managing the high costs associated with hearing aids.
States to the rescue: Mandated insurance coverage
In an attempt to address this issue, more than 30% of states mandate some level of insurance coverage for hearing aids for minors. Regulations and qualifications vary greatly by state, so you’ll want to check your state’s laws for the full details.
A few states, such as Illinois and New Hampshire, extend this mandate to adults as well, providing some relief for those requiring hearing aids later in life.
The cost of hearing aids
Despite these efforts, the cost of hearing aids remains a significant burden. The price can range from $1,000 to $4,000 per ear, with some high-end models exceeding $8,000. These figures can be daunting, especially if you don’t have adequate insurance coverage. This is where HSAs & FSAs come into play.
A Quick Refresher: What Are HSAs & FSAs?
How do HSAs & FSAs work?
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are financial tools that allow individuals to save pre-tax dollars for medical expenses. By using pre-tax dollars, consumers can save between 30% to 40% on purchases made with their HSA or FSA. These accounts offer significant tax advantages and can be used to cover a wide range of health care costs.
What Are Qualified Medical Expenses?
Every year, the Internal Revenue Service (IRS) sets guidelines for what is covered. The general rule is that “[qualified] medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness,” according to the IRS. This includes costs associated with diagnosis, cure, mitigation, treatment, or prevention.
These expenses can be paid for using HSA or FSA funds, which can provide significant financial relief for you and your family.
What are HSA/FSA eligible items?
HSAs and FSAs can be used to purchase a variety of eligible items, including:
Diagnostic testing and checkups
Medical equipment (e.g., crutches, blood pressure monitors)
Prescription glasses and medications
Over-the-counter (OTC) drugs
Various health-related services (e.g., physical therapy, chiropractic care)
You can use HSA/FSA for vision and dental care, as well as many other medically necessary items. You can find the full list of HSA/FSA-eligible items from the IRS here.
Are Hearing Aids HSA/FSA Eligible?
Yes, hearing aids are HSA/FSA eligible!
Historically, a prescription was required for hearing aids to be eligible for HSA/FSA reimbursement. However, in 2022, the IRS announced that hearing aids could be purchased over-the-counter, expanding access and simplifying the process for consumers.
According to IRS Publication 502 (Medical and Dental Expenses), “the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it” qualifies as a medical expense.
Are hearing aid batteries and other accessories HSA/FSA eligible?
We’ve noted that you can use your HSA or FSA for hearing aids, but several associated expenses are also eligible. These include:
Batteries: Essential for powering hearing aids, hearing aid batteries are HSA eligible.
Ear molds: Custom-fitted molds for improved comfort and performance.
Repairs: Costs associated with repairing hearing aids.
Hearing aid maintenance: Includes cleaning solutions, storage cases, and dehumidifiers to keep your hearing aid in optimal condition.
What other hearing-related expenses are covered by HSA/FSA?
It doesn’t stop there! HSAs and FSAs can also be used to cover a range of other hearing-related expenses, such as:
Cochlear implants: Surgical implants that provide a sense of sound to individuals with severe hearing loss.
Hearing aid adjustments: Professional services to adjust and optimize hearing aid settings.
Hearing exams and tests: Performed by licensed audiologists or qualified healthcare professionals.
Speech therapy: Therapy services to improve communication skills.
Can I use my HSA/FSA for other forms of hearing protection?
Yes, HSAs can be used for other forms of hearing protection, such as ear plugs and over-ear earmuffs to help prevent hearing loss in a work setting.
However, these items typically require a Letter of Medical Necessity (LOMN) from a healthcare provider, similar to specialty eyewear equipment. This document must explain why the item is deemed medically necessary by a doctor.
ELEHEAR: Affordable AI-Driven Hearing Aids of the Next Generation
With top marks from HearAdvisor and Soundly, ELEHEAR's FDA-cleared over-the-counter hearing aids deliver top-tier technology at a fraction of the price.
They do this by going directly to consumer, offering AI-powered noise-reduction, hearing compensation, feedback cancelation and even sound therapy solutions for Tinnitus relief at only a fraction of their competitors’ prices.
The best part: you can buy ELEHEAR hearing aids with your HSA/FSA!
How Flex Can Help You Purchase Hearing Aids & Accessories With Your HSA/FSA
Hearing aids are considered to be medical devices. As such, they are a qualified medical expense so you can use your HSA or FSA debit card, or pay for it out-of-pocket and get reimbursed.
However, not all online retailers can accept HSA or FSA payments. You’ll know if this is the case because your card will be declined. That’s where we come in: if an e-commerce company has partnered with Flex, such as ELEHEAR, they can accept HSA/FSA cards because we allow purchases to be auto-substantiated. What that means for you is the payment will go through so you won’t need to submit for reimbursement!
Enjoy the Sound of Saving With Your HSA/FSA
Hearing aids can greatly improve your quality of life, and HSAs and FSAs can help make them more affordable — who doesn’t like the sound of that?
Have you heard this? More than 1 in 10 adults in the U.S. experience some level of hearing loss, and that number jumps to above 50% for adults over 75.
You may also be surprised to learn that loss of hearing can leave you feeling more than just out of the loop, in fact, it is connected to social isolation, walking and balance problems, and even dementia.
Luckily, devices like hearing aids can help improve hearing and your quality of life. While they can be a significant investment, there might be a way to make them more affordable: your FSA or HSA.
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
What We’ll Cover About Paying for Hearing Aids with Your HSA or FSA
What hearing aids are and how they work
Are hearing aids covered by insurance?
The cost of hearing aids
Different types of hearing aids
How HSAs and FSAs work and what qualifies an item for being eligible
Are hearing aids HSA/FSA eligible?
Which kinds of accessories for hearing aids are HSA/FSA eligible
How Flex can help you purchase hearing aids with your HSA/FSA
What Are Hearing Aids?
First things first, hearing aids are sophisticated electronic devices that amplify sound.
They consist of three primary components: a microphone that picks up sound, an amplifier that increases the volume of the sound, and a speaker that delivers the amplified sound into the ear.
What causes loss of hearing?
Hearing loss can be caused by many different things, including:
Aging: Age-related hearing loss, known as presbycusis, is common and affects the ability to hear high-frequency sounds.
Exposure to loud noise: Prolonged exposure to loud noises can damage the hair cells in the inner ear, leading to noise-induced hearing loss.
Ear infections: Chronic ear infections can damage the structures of the middle ear. This can cause conductive hearing loss.
Genetics: Hereditary factors can play a significant role in the development of hearing loss. Over half of all childhood hearing loss is caused by genetic factors.
Head Injuries: Trauma to the head can damage the auditory pathways, resulting in hearing loss.
Ototoxic Medications: Certain medications can cause hearing loss as a side effect.
What are the different types of hearing aids?
Hearing aids come in various styles, each catering to different degrees of hearing loss and user preferences. The main types you need to know about include:
Behind-the-Ear (BTE): These hearing aids are worn behind the ear and connected to an earmold inside the ear canal. They are suitable for all types of hearing loss and are known for their durability and ease of handling.
In-the-Ear (ITE): ITE hearing aids fit entirely inside the outer ear. They are larger than some other styles, making them easier to handle, and are suitable for mild to severe hearing loss.
In-the-Canal (ITC): These devices fit partly in the ear canal and are less visible than ITE aids. They are suitable for mild to moderate hearing loss.
Completely-in-Canal (CIC): CIC hearing aids are almost invisible as they fit deep inside the ear canal. They are suitable for mild to moderate hearing loss but may not be suitable for those with severe hearing loss or dexterity issues.
Receiver-in-Canal (RIC): Similar to BTE hearing aids, RIC devices have the receiver placed in the ear canal, making them smaller and more discreet. They are suitable for mild to severe hearing loss.
What to look for in hearing aids?
When choosing the right hearing aids for you, consider the following 7 factors:
Comfort and fit: Make sure the hearing aids fit comfortably and securely.
Sound quality: Look for devices that offer clear, natural sound.
Battery life: Consider the battery life and whether the devices use rechargeable or disposable batteries.
Noise reduction capabilities: Go for hearing aids with advanced noise reduction features.
Bluetooth connectivity: Some hearing aids offer Bluetooth connectivity for streaming audio from devices.
Price and warranty: Compare prices and check for warranty coverage.
Professional fitting and adjustments: Ensure the hearing aids can be professionally fitted and adjusted for optimal performance.
Considering how common hearing loss is and the important role hearing aids play, let’s review how you may be able to pay for them.
Are Hearing Aids Covered by Insurance?
When it comes to health insurance, hearing aids often find themselves in a grey area. Many insurance plans do not cover the cost of hearing aids, although they do cover the expense of diagnostic tests that identify hearing loss.
A revealing hearing tracker survey indicates that three in four respondents received no coverage for hearing aids through their health insurance or Medicare. This statistic highlights a significant gap in coverage for a condition that affects about 1 in 3 adults over 65. As a result, many need to shoulder the full cost themselves.
There are some exceptions, though. Medicaid, the Department of Veterans Affairs, and some private insurance offer coverage, while charities and workers' compensation might also provide financial assistance for those who qualify.
This limited assistance, similar to what you find with dental care, underscores the importance of alternative financial strategies for managing the high costs associated with hearing aids.
States to the rescue: Mandated insurance coverage
In an attempt to address this issue, more than 30% of states mandate some level of insurance coverage for hearing aids for minors. Regulations and qualifications vary greatly by state, so you’ll want to check your state’s laws for the full details.
A few states, such as Illinois and New Hampshire, extend this mandate to adults as well, providing some relief for those requiring hearing aids later in life.
The cost of hearing aids
Despite these efforts, the cost of hearing aids remains a significant burden. The price can range from $1,000 to $4,000 per ear, with some high-end models exceeding $8,000. These figures can be daunting, especially if you don’t have adequate insurance coverage. This is where HSAs & FSAs come into play.
A Quick Refresher: What Are HSAs & FSAs?
How do HSAs & FSAs work?
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are financial tools that allow individuals to save pre-tax dollars for medical expenses. By using pre-tax dollars, consumers can save between 30% to 40% on purchases made with their HSA or FSA. These accounts offer significant tax advantages and can be used to cover a wide range of health care costs.
What Are Qualified Medical Expenses?
Every year, the Internal Revenue Service (IRS) sets guidelines for what is covered. The general rule is that “[qualified] medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness,” according to the IRS. This includes costs associated with diagnosis, cure, mitigation, treatment, or prevention.
These expenses can be paid for using HSA or FSA funds, which can provide significant financial relief for you and your family.
What are HSA/FSA eligible items?
HSAs and FSAs can be used to purchase a variety of eligible items, including:
Diagnostic testing and checkups
Medical equipment (e.g., crutches, blood pressure monitors)
Prescription glasses and medications
Over-the-counter (OTC) drugs
Various health-related services (e.g., physical therapy, chiropractic care)
You can use HSA/FSA for vision and dental care, as well as many other medically necessary items. You can find the full list of HSA/FSA-eligible items from the IRS here.
Are Hearing Aids HSA/FSA Eligible?
Yes, hearing aids are HSA/FSA eligible!
Historically, a prescription was required for hearing aids to be eligible for HSA/FSA reimbursement. However, in 2022, the IRS announced that hearing aids could be purchased over-the-counter, expanding access and simplifying the process for consumers.
According to IRS Publication 502 (Medical and Dental Expenses), “the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it” qualifies as a medical expense.
Are hearing aid batteries and other accessories HSA/FSA eligible?
We’ve noted that you can use your HSA or FSA for hearing aids, but several associated expenses are also eligible. These include:
Batteries: Essential for powering hearing aids, hearing aid batteries are HSA eligible.
Ear molds: Custom-fitted molds for improved comfort and performance.
Repairs: Costs associated with repairing hearing aids.
Hearing aid maintenance: Includes cleaning solutions, storage cases, and dehumidifiers to keep your hearing aid in optimal condition.
What other hearing-related expenses are covered by HSA/FSA?
It doesn’t stop there! HSAs and FSAs can also be used to cover a range of other hearing-related expenses, such as:
Cochlear implants: Surgical implants that provide a sense of sound to individuals with severe hearing loss.
Hearing aid adjustments: Professional services to adjust and optimize hearing aid settings.
Hearing exams and tests: Performed by licensed audiologists or qualified healthcare professionals.
Speech therapy: Therapy services to improve communication skills.
Can I use my HSA/FSA for other forms of hearing protection?
Yes, HSAs can be used for other forms of hearing protection, such as ear plugs and over-ear earmuffs to help prevent hearing loss in a work setting.
However, these items typically require a Letter of Medical Necessity (LOMN) from a healthcare provider, similar to specialty eyewear equipment. This document must explain why the item is deemed medically necessary by a doctor.
ELEHEAR: Affordable AI-Driven Hearing Aids of the Next Generation
With top marks from HearAdvisor and Soundly, ELEHEAR's FDA-cleared over-the-counter hearing aids deliver top-tier technology at a fraction of the price.
They do this by going directly to consumer, offering AI-powered noise-reduction, hearing compensation, feedback cancelation and even sound therapy solutions for Tinnitus relief at only a fraction of their competitors’ prices.
The best part: you can buy ELEHEAR hearing aids with your HSA/FSA!
How Flex Can Help You Purchase Hearing Aids & Accessories With Your HSA/FSA
Hearing aids are considered to be medical devices. As such, they are a qualified medical expense so you can use your HSA or FSA debit card, or pay for it out-of-pocket and get reimbursed.
However, not all online retailers can accept HSA or FSA payments. You’ll know if this is the case because your card will be declined. That’s where we come in: if an e-commerce company has partnered with Flex, such as ELEHEAR, they can accept HSA/FSA cards because we allow purchases to be auto-substantiated. What that means for you is the payment will go through so you won’t need to submit for reimbursement!
Enjoy the Sound of Saving With Your HSA/FSA
Hearing aids can greatly improve your quality of life, and HSAs and FSAs can help make them more affordable — who doesn’t like the sound of that?
Flex is the easiest way for direct to consumer brands and retailers to accept HSA/FSA for their products. From fitness and nutrition, to sleep and mental health, Flex takes a holistic view of healthcare and enables consumers to use their pre-tax money to do the same.