Can I Use Health Accounts to Buy CPAP Equipment?
Yes! You can use health savings accounts like HSA’s, HRA’s & FSA’s to purchase CPAP equipment.
Durable Medical Equipment, including CPAP equipment and supplies, is eligible for reimbursement under all of the following health savings accounts.
Overview
These accounts are great for people who have high-deductible plans. They help supplement funds for medical needs when the primary insurance does not cover it.
| HSA | HRA | FSA | |
| Who owns the account? | Employee, individual | Employer, but held in the employee’s name | Employer, but held in employee’s name |
| Who can contribute to the account? | Employee, employer, or both | Employer only | Employer, employee, or both |
| Is a separate account required? | Yes, an IRA-type account is required | No, it can be paid from employer assets | No, it can be paid from employer assets |
| Are there contribution limits? | Yes, for 2019: $3,500 single, and &$7,000 for family | No, there are no limits. | Yes, for 2019: $2,700 per plan, per year. |
| Can the account be moved to other employers? | Yes, the account is fully portable. | Yes, but it is at the employer’s discretion. | No, the account cannot be moved. |
| Can the funds be rolled over? | Yes, the funds can be rolled over. | Yes, but at the discretion of the employer. | Yes, up to $500 can be rolled over at the discretion of the employer. |
| When are the funds available? | Funds are available as they are deposited. | Funds are available as they are deposited and can be dispersed as a lump sum. | The full amount of the account is available starting on the first day of the coverage year. |
| What is the compatibility with other savings accounts? | The account can be paired with an HRA/FSA if limited to the amounts over the deductible. Also may be paired with DCAP and/or PRA. | The account may be paired with an FSA, DCAP, & PRA. If paired with an HSA it must be limited to the amounts over the deductible. | The account may be paired with an HRA, DCAP, & PRA. If paired with an HSA it must be limited to the amounts over the deductible. |
| Does a COBRA account apply? | No, a COBRA plan does not apply. | Yes, a COBRA plan can apply. | Yes, a COBRA plan can apply. |
| Can retirees be covered? | Yes, retirees can be covered. | Yes, retirees can be covered. | No, retirees cannot be covered. |
| Are debit cards available? | Yes, debit cards can be used. | Yes, debit cards can be used. | Yes, debit cards can be used. |
| Can Medicare participants contribute? | No, contributions cannot be made once the individual has Medicare coverage. | Yes, there are no limits to contributions. | Yes, there are no limits to contributions. |
| Can expenses be paid after the individual is no longer covered? | Yes, expenses that are incurred after the individual is not eligible can be paid. | Yes, expenses that are incurred after the individual is not eligible can be paid. However, it is at the employer’s discretion. Or, if COBRA is elected. | Yes, expenses that are incurred after the individual is not eligible can be paid. However, only if COBRA is elected. |
Health Savings Account Information
How to Use your FSA or HRA for CPAP Supplies
HRA’s and FSA’s require two things: a claim form to fill out, and expense statements.
Claim Form: a completed Health Care Reimbursement Request Form.
Expense Statements: detailed proof of health care expenses. The IRS requires receipts with ALL of the following:
- Date of service
- Customer (or patient) name
- Name of service provider (health care provider or merchant)
- Service provider contact information
- Type of service
- Description of expenses — Customer cost (the customer’s responsibility for services rendered)
How to use an HSA for CPAP Supplies
HSA’s are the easiest to use, because they work similarly to a standard checking account. Some account holders will have an HSA debit card, or receive checks to use. However, some accounts still require you to pay out-of-pocket first then send in a reimbursement claim.
HSA’s are great for people who have predictable medical spending, such as sleep apnea patients. CPAP supplies require maintenance over the course of a year, buying new tubes, filters, mask cushions, mask headgear, etc.
Additional Information on HRA’s, HSA’s & FSA’s
Information on eligibility for CPAP products:
- Cleaning Supplies
- Hose Holders
- CPAP Machines
- CPAP Masks & Headgear
- Pillows
*Disclaimer
To be 100% certain of your health savings benefits please contact your employer, or whomever is responsible for maintaining your healthcare-related account. 1800cpap.com is not responsible for any misuse of your healthcare services.
References
- “FSA, HRA, and HSA Explained.” CPAP Wholesale, 2018, www.cpapwholesale.com/info/hsa-hra-fsa-explained.
- Folger, Jean. “Pros and Cons of a Health Savings Account (HSA).” Investopedia, Investopedia, 3 Dec. 2018, www.investopedia.com/articles/personal-finance/090814/pros-and-cons-health-savings-account-hsa.asp.
- “Health Account Comparison.” Top 5 Reasons to Use an HSA, 2018, www.optumbank.com/all-products/account-comparison.html.
- “How to Use Your HSA, HRA, or FSA.” Cigna, a Global Health Insurance and Health Service Company, 2018, www.cigna.com/individuals-families/member-resources/hsa-fsa-hra-payments/.
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“HSAs vs HRAs vs FSAs Comparison.” ConnectYourCare, 2018, www.connectyourcare.com/tools/account-comparison/.
About the Author
1800CPAP
Jason Smith is recognized by the board of polysomnographic technologists (BRPT) as a registered polysomnographic technologist (RPSGT) since 2003.
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