If you have a Flexible Spending Account (FSA) through your employer, you already know it‘s a great way to save money on out-of-pocket healthcare costs. But did you know that Walmart is a one-stop-shop for a huge variety of FSA-eligible items? That‘s right – America‘s biggest retailer stocks everything from bandages to blood pressure monitors, and you can use your FSA debit card to instantly pay for these items in-store.
In this comprehensive guide, we‘ll cover everything you need to know about maximizing your FSA benefits at Walmart. You‘ll learn exactly what types of products are eligible, how to use your FSA card at the register, and insider tips for stretching your FSA dollars further at Walmart. Let‘s dive in!
FSA 101: The Basics of Flexible Spending Accounts
Before we get into the specifics of using your FSA at Walmart, let‘s review some fundamentals. An FSA is a special account you can put money into to pay for certain out-of-pocket health care costs. You don‘t pay taxes on this money, so you‘ll save an amount equal to the taxes you would have paid on the money you set aside.
The key features of an FSA include:
- Pre-tax contributions up to $2,750 per year per employer (2020 limit)
- Funds can be used for your own medical expenses or those of your spouse and dependents
- Eligible expenses include deductibles, copayments, medications, and other health products
- Some FSA plans include a grace period or $500 carryover option for unused funds
- "Use it or lose it" provision means any leftover money is forfeited at the end of the year
The bottom line is an FSA helps you save on taxes and budget for health expenses. Now let‘s look at how you can take advantage of your FSA to purchase medical necessities at Walmart.
Walmart‘s Wide Range of FSA-Eligible Products
You might be surprised by the sheer scope of FSA-approved items available at Walmart. The retail giant has dedicated significant shelf space and website real estate to products that qualify for FSA reimbursement. Here are just a few of the categories and example products:
First Aid
- Adhesive bandages
- Gauze and tape
- Antibiotic creams
- Hot and cold packs
Pain Relief
- Tylenol, Advil, Aleve
- Heating pads
- Ice packs
- Icy Hot patches
Eye & Ear Care
- Contact lens solution
- Reading glasses
- Ear thermometers
- Ear wax removal kits
Medical Equipment
- Blood pressure monitors
- Diabetic socks
- Wheelchairs and mobility aids
- CPAP machines
Diagnostic Tests
- Pregnancy tests
- Blood glucose monitors
- Cholesterol tests
- Drug tests
Skin & Personal Care
- Sunscreen (SPF 15+)
- Acne treatments
- Lip balm (medicated)
- Foot creams for diabetes/arthritis
And this is just a small sampling! Walmart has hundreds of products that fall under FSA eligibility guidelines. Next we‘ll look at how to actually pay for these items with your account.
Using Your FSA Debit Card at Walmart Stores
If your FSA plan includes a debit card (and most do these days), using your benefit to pay for items at Walmart is a breeze. You simply swipe the card at checkout as you would any other bank card.
Walmart‘s point-of-sale system is designed to automatically detect FSA-eligible products by their SKU or UPC. This means:
- The total for qualifying items will be deducted directly from your FSA balance
- Any remaining non-eligible items will be totaled separately for you to pay via another method
- You don‘t have to keep track of eligibility – Walmart‘s system does it for you!
- Your FSA purchases will be clearly documented on the receipt
While not required, it‘s still a good idea to hang onto your itemized receipts from Walmart in case you need to substantiate your purchase later or reimburse yourself for an out-of-pocket expense.
To get the most mileage from your FSA card, consider doing larger stock-up trips at Walmart once or twice a year so you can take full advantage of your available funds. Make a list in advance of all the first aid, medical, and personal care items your family uses regularly.
Buying FSA Items on Walmart.com
Walmart makes it incredibly easy to find FSA-approved items on its website. Simply navigate to the dedicated FSA section under the "Health" category:
From there, you can browse featured categories like "Baby Care" and "Diabetes Management" or do a search for a specific product. A blue "FSA Eligible" label lets you know which items qualify.
One important thing to note is that Walmart.com currently does not accept FSA debit cards as a direct form of payment. However, you can still purchase eligible items online and get reimbursed later. Here‘s how:
- Pay for the transaction with a regular credit card or other accepted payment method
- Print or save a copy of the final invoice showing the items purchased
- Log into your FSA administrator‘s web portal and fill out a claim form
- Submit the form along with a copy of the invoice or receipt
- Wait for the funds to be credited back to your bank account or sent via paper check
While it requires a few extra steps, buying FSA items from Walmart online is still a convenient option, especially for products you want shipped directly to your door.
FSA Deadlines and Carryovers: What You Need to Know
The biggest downside of FSAs is that they are time-limited. Most plans operate on a strict "use it or lose it" policy (hence all the drugstore crowds in December). However, recent IRS changes have made FSAs a bit more forgiving and flexible.
As of 2020, employers can offer one of two options:
- Allow participants to carry over up to $500 of unused funds to the next plan year
- Offer a grace period of up to 2.5 months after the end of the plan year
For example, if your plan year ends on December 31, you may have until March 15 of the following year to use your remaining FSA balance before forfeiting the money back to your employer.
With careful planning, you can avoid leaving any of your hard-earned FSA dollars on the table. I recommend setting calendar reminders and treating Walmart runs as an important to-do in the last quarter of the year.
Other Ways to Pay at Walmart
In addition to FSA debit cards, Walmart accepts a wide variety of other payment methods for your health and medical needs:
- Major credit cards (Visa, Mastercard, American Express, Discover)
- Walmart and Sam‘s Club credit cards (earn up to 5% cash back)
- Debit cards
- Walmart gift cards
- PayPal
- Venmo
- HSA (Health Savings Account) cards
- SNAP/EBT for eligible food items
Between in-store and online shopping options, flexible payment methods, and broad product selection, Walmart makes it easy to maximize your employee benefits on hundreds of everyday health items.
Expert Tips for Maximizing Your FSA at Walmart
To wrap things up, here are some insider tips for getting the most from your FSA at the world‘s largest retailer:
- Make an FSA shopping list before you hit the store and stick to it to avoid overspending
- Compare prices at Walmart vs. other pharmacies and retailers; you may find a better deal elsewhere
- If using FSA for vision or dental expenses, see if your plan includes Walmart as an in-network provider
- Take advantage of Walmart‘s "FSA calculator" to estimate care costs and how much you‘ll save in taxes
- Watch for seasonal sales and promotional offers on popular FSA-approved items to stretch your dollars further
- If you have an FSA-eligible dependent care account, you can use it for diapers, baby supplies, etc.
We hope this guide has given you a better understanding of how to navigate your FSA benefits at Walmart. With a little planning and savvy shopping, you can minimize your out-of-pocket health spending and maximize your take-home pay. Happy (and healthy) shopping!
