Are Hearing Aids FSA or HSA Eligible?
Key takeaways:
You can use a flexible spending account (FSA) or a health savings account (HSA) to pay for hearing aid expenses that aren’t covered by insurance.
You may also be able to use an FSA or an HSA to pay for eligible expenses related to hearing aids, such as batteries, ear molds, and repairs.
Before you purchase hearing aids, find out if they’re covered by your insurance. Some insurance plans, such as Medicaid or Medicare Advantage, may cover some of the costs.
Table of contents
More than 1 in 10 adults in the U.S. experiences some level of hearing loss. And over 30% of adults age 65 and older experience hearing loss. At work, this challenge might affect your performance. In daily life, it increases the risk of accidents and injuries.
Many insurance plans don’t cover hearing aids, which may explain why 1 in 6 American adults under age 70 who could benefit from hearing aids goes without them. The cost of hearing aids can range anywhere from $1,000 to $4,000 per ear, but some are $8,000 or more.
If you have a health savings account (HSA) or a flexible savings account (FSA), you can use this pretax money to pay for certain hearing aid expenses.
Prescription Savings Are Just the Beginning
See what other savings you qualify for—from hearing aids to product samples.
Are hearing aids FSA eligible?
Yes, you can use money from your health FSA to pay for hearing aid expenses that aren’t reimbursed by an insurance company or anyone else. A health FSA is an employer-sponsored health benefit that lets you set aside pretax money to pay for eligible healthcare expenses. The IRS considers hearing aids to be a qualified medical expense.
But a limited-purpose FSA, which is an employer-sponsored account primarily used to pay for vision and dental expenses, doesn’t cover hearing aids. You also can’t use a dependent care FSA for hearing aids. This employer-sponsored account is limited to expenses for child and dependent care.
It’s important to note that FSA money is “use it or lose it,” meaning it doesn’t roll over from one plan year to the next. (Your company may offer a carryover option or a grace period.) Your employer will not return unused funds to you. To use FSA money to pay for hearing aid expenses, make your purchase before your plan year ends.
How to buy hearing aids with an FSA
If you want to buy hearing aids with FSA money, here are the steps to take:
Confirm eligibility. Hearing aids are usually a qualified expense, but it’s a good idea to make sure your purchase qualifies for reimbursement. Search your FSA administrator’s website or call to ensure eligibility.
Use an FSA debit card. Your FSA administrator may give you a debit card to make eligible purchases. If you use your FSA debit card to pay for the hearing aids from eligible providers, retailers, or e-commerce sites, the amount you spend will be deducted from your FSA balance.
Submit a claim for reimbursement. If you pay for your hearing aids out of pocket, you need to submit a claim to your FSA administrator for reimbursement. This claim usually must be submitted by the end of your plan year (or the end of the grace period if your employer offers one).
How can you check if something is FSA eligible?
You can search your FSA administrator’s website or call directly to determine which healthcare expenses are FSA eligible. If you use your account to pay for ineligible expenses, you may owe taxes on the amount you withdraw.
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Are hearing aids HSA eligible?
Yes, you can use HSA money to pay for hearing aid expenses that aren’t reimbursed by an insurance company or anyone else. These are HSA-eligible expenses.
You can also use a health reimbursement arrangement (HRA) to pay for qualified medical expenses, like hearing aids. Unlike an HSA, an HRA is funded solely by an employer. It can be used as an alternative or a complement to traditional health insurance.
An HSA is a pretax savings account for people enrolled in a high-deductible health plan. Your HSA money can help you pay your higher deductible. HSA contributions, investments, and withdrawals for qualified medical expenses are tax free. For 2024, you can contribute up to $4,150 to an individual HSA or $8,300 to a family plan. For either plan, people 55 and older can contribute an additional $1,000.
For example, let’s say someone who is 53 years old contributes $4,150 to their individual HSA. The account earns $150 in interest for the year. The individual spends $4,000 on hearing aids.
If the person is in the 24% tax bracket (about $95,000 to $182,000 individual income for 2023), they would save $996 in federal income taxes. They would not have to pay taxes on the interest earned in their HSA, and the hearing aid purchase would be tax free.
Unlike an FSA, the money in your HSA rolls over every year. You can save money in your HSA to pay for hearing aids in the future.
What other costs related to hearing loss does your FSA or HSA cover?
In addition to the cost of hearing aids, your FSA or HSA can be used for other related costs, including:
Accessories for hearing aid maintenance, like cleaning solutions, storage cases, and dehumidifiers
Batteries for hearing aids
Cochlear implants
Ear molds
Hearing aid adjustments
Hearing exams and tests performed by licensed audiologists or qualified healthcare professionals
Repairs
Speech therapy
Can you use your FSA or HSA to pay for OTC hearing aids?
Yes, it doesn’t matter if your aids are over the counter or prescribed. The IRS considers both qualified medical expenses.
Are hearing aids covered by insurance?
Before you purchase hearing aids, ask your health insurance provider to see if they’re covered under your policy.
A hearing tracker survey shows that 3 in 4 Americans do not have some coverage through their health insurance. Some people receive financial assistance for hearing aids from a charity or workers’ compensation. But fewer than 1 in 20 receive full coverage from insurance.
More than 30% of states mandate some insurance coverage for hearing aids for children. A few states, including Illinois and New Hampshire, also require coverage for adults.
Below are a few types of insurance plans that may cover your hearing aid costs. Only the costs not covered by insurance are eligible for HSA or FSA reimbursement.
Medicare: Medicare doesn’t usually cover hearing aids or exams for fitting hearing aids, but Medicare Part B may cover diagnostic hearing tests under certain conditions. A KFF analysis found that 98% of 2024 Medicare Advantage plans provide coverage for hearing exams, hearing aids, or both.
Medicaid: Some state Medicaid programs offer comprehensive coverage, including hearing aids and related services, but others have more limited coverage or none at all. Check with your state’s Medicaid office.
Commercial or private insurance: Some plans cover hearing aid expenses fully or partially, while others offer no coverage. There will also be a deductible and copays. Check with your insurance provider.
Department of Veterans Affairs (VA): You must be eligible for healthcare benefits with the VA and make an appointment with a VA audiologist to see if you qualify for hearing aid coverage. If they determine you need a hearing aid, then you will get full coverage.
What other savings and insurance plans cover hearing aids?
Hearing aids can cost thousands of dollars, but there are programs that may help you cover the cost. You can use your HSA or FSA to cover any remaining costs that you have to pay out of pocket. Here are a few ways to save on hearing aids:
Tax deduction: If your total medical expenses exceed 7.5% of your adjusted gross income and you itemize deductions, you may be able to deduct hearing aid expenses on your tax return.
Nonprofit organizations: Some nonprofit groups, such as Help America Hear and Hearing Aid Project, have programs that provide free or discounted hearing aids if you meet their requirements.
Medicaid: Each state has its own rules regarding Medicaid coverage for hearing aids. Check the Hearing Loss Association of America website for specifics about coverage in your state.
The bottom line
You can use HSA or FSA to buy hearing aids and associated expenses, such as ear molds, batteries, and repairs. But these tax-advantaged accounts can be used only for expenses not covered by insurance or any other program. If you want to use your HSA or FSA to buy hearing aids, first confirm which expenses are eligible and how reimbursement works.
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References
Bailey, A. (2024). Paying for hearing aids with health insurance. Hearing Tracker.
Dobie, R. A., et al. (2004). Chapter 6: Impact of hearing loss on daily life and the workplace. Hearing Loss: Determining Eligibility for Social Security Benefits. National Academies Press.
Freed, M., et al. (2023). Medicare Advantage 2024 spotlight: First look. KFF.
HealthCare.gov. (n.d.). Copayment.
Hernandez, N. (2023). Hearing loss statistics 2023: More common than you might think. National Council on Aging.
Internal Revenue Service. (2023). 26 CFR 601.602: Tax forms and instructions.
Internal Revenue Service. (2024). Publication 502 (2023), medical and dental expenses.
Lin, H. W., et al. (2018). Self-reported hearing difficulty and risk of accidental injury in US adults, 2007 to 2015. JAMA Otolaryngology Head & Neck Surgery.
U.S. Centers for Medicare & Medicaid Services. (n.d.). Hearing & balance exams.
U.S. Department of Veterans Affairs. (n.d.). Hearing aids.
