Baby monitors can be covered by HSA or FSA. Still, it depends on the type of monitor and your plan’s specific coverage. Check with your plan provider before purchasing, and make sure the baby monitor you choose is covered. Don’t let cost be an obstacle to your child’s safety – take advantage of your HSA or FSA to invest in a good quality baby monitor.
As a father of two adorable munchkins, I understand the constant need to keep a watchful eye on them. Baby monitors are a godsend, providing us with the peace of mind we crave as parents. However, they can be expensive, especially when you must buy many other nursery things. Therefore, we’ll explore how Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can help cover the cost of baby monitors, making them more accessible to budget-conscious families like ours.
That’s why I want to address many parents’ questions: are baby monitors HSA or FSA eligible? If you’re like me, you want to know if you can use your healthcare funds to purchase a baby monitor.
This article will cover the followings points:
- Understanding HSA and FSA
- Baby Monitors as Qualified Medical Expenses
- How to Use HSA or FSA Funds for Baby Monitors
- Tips for Choosing the Right Baby Monitor
- Conclusion
Now, let’s dive into the world of HSAs and FSAs and see how they can help us stay on top of our kiddos’ safety.
Navigating the Maze: Understanding HSA and FSA
Before taking advantage of HSAs and FSAs for baby monitor expenses, we must understand these accounts and how they work. I know it looks like a bureaucratic nightmare, but fear not! I’ll break it down for you!
Health Savings Account (HSA) Explained
Ah, the Health Savings Account (HSA) is a mysterious financial creature that can help us. But what is it exactly?
- HSA Definition: An HSA is a tax-advantaged account designed to help those with high-deductible health plans (HDHPs) save money for medical expenses. The best part? The funds you contribute are tax-free, and they roll over from year to year. Unlike Aunt Edna’s homemade cookies, there is no “use it or lose it” policy.
- HSA Eligibility: To be eligible for an HSA, you must be enrolled in an HDHP, which means you pay lower monthly premiums but have a higher deductible. Trust me, as a dad of two, every penny saved counts! However, if you’re enrolled in Medicare or are claimed as a dependent on someone else’s tax return, you won’t qualify. Sorry, Grandma!
- HSA Contribution limits: The IRS sets annual contribution limits for HSAs. In 2023, individuals can contribute up to $3,650, while families can contribute up to $7,300. Pro tip: if you’re 55 or older, you can make an additional $1,000 “catch-up” contribution because we all know parenting keeps us young at heart, but Uncle Sam still thinks otherwise.
Moving on to FSA!
Flexible Spending Account (FSA) Uncovered
Just when you thought we were done with the financial alphabet soup, let me introduce you to another valuable player in the game: the Flexible Spending Account (FSA). Let me demystify the FSA for you!
- FSA Definition: An FSA is a tax-advantaged account that allows you to set aside pre-tax dollars for eligible healthcare expenses – think of it as your personal healthcare piggy bank! The catch? It usually follows a “use it or lose it” policy, meaning you must spend the funds within the plan year or risk losing them. It’s like racing against the clock to catch your toddler before they dive headfirst into a mud puddle.
- FSA Eligibility: Congratulations, you’re eligible if you’re employed and your employer offers an FSA! However, if you’re self-employed, freelancing, or “fun-employed,” you won’t be able to open an FSA. Don’t worry, though. There are still plenty of other ways to save on baby gear!
- FSA Contribution limits: In 2023, you can contribute up to $2,750 to your FSA. Your employer might also contribute but don’t count on it covering the entire cost of your baby monitor shopping spree. Remember to spend those funds before they vanish like your favorite sock in the washing machine.
With a clearer understanding of HSAs and FSAs, let’s find out if baby monitors qualify as medical expenses.
Are Baby Monitors on the IRS’s List of Qualified Medical Expenses?
Baby monitors have become essential tools for modern parenting. But according to the IRS, do they make the cut as qualified medical expenses? Here are the criteria for medical necessity and special cases where baby monitors could be covered.
- Definition of qualified medical expenses: According to the IRS, qualified medical expenses are costs incurred primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease or for the purpose of affecting any structure or function of the body. In simpler terms, it’s like a secret club with a strict dress code: only expenses directly related to keeping you and your family healthy can join.
- Examples of eligible expenses: The IRS provides a comprehensive (and slightly mind-numbing) list of qualified expenses, but let’s go over a few common ones to give you an idea: doctor and dentist visits, prescription medications, mental health counseling, medical equipment, like crutches or wheelchairs, and health screenings and tests.
Ok, back to the big question: are baby monitors covered? Baby monitors typically don’t make the cut as qualified medical expenses. However, there’s a silver lining: if your child has a specific medical condition that requires monitoring, your doctor may prescribe a baby monitor as a medically necessary expense. In that case, your HSA or FSA could swoop in to cover the cost!
Baby Monitors: From Everyday Parenting Tool to Medical Necessity
Whether it’s to prevent your toddler’s midnight escape or to listen for your newborn’s first coo, baby monitors are a staple in most modern nurseries. But when it comes to HSA and FSA coverage, we must research deeper into the world of medical necessity.
- General use of baby monitors: Baby monitors are the eyes and ears we wish we had when our little ones are out of sight. They help us keep tabs on naptime, nighttime, and playtime antics. While they provide peace of mind and a sense of security, they’re generally not considered a qualified medical expense in the eyes of the IRS. Bummer, right? But keep hope!
- Special cases (medical conditions and doctor’s recommendation): Sometimes, our tiny humans need extra care and attention due to specific medical conditions. In these cases, a baby monitor can transform from a regular parenting tool to a medical necessity. For example, if your child is a preemie, has sleep apnea, or suffers from a heart condition, your doctor might prescribe a specialized baby monitor to monitor their vital signs closely.
Now that we know how baby monitors can be qualified for medical expenses let’s see how to use your HSA or FSA funds to purchase them.
How To Use HSA or FSA Funds for Baby Monitors?
So, you’ve decided to get a baby monitor and want to use your HSA or FSA funds – fantastic! But how do you go about it? I’ll walk you through the process. Because, let’s face it, parenting is tough enough without navigating financial paperwork.
- Do you have an HSA or FSA debit card? In that case, you can use it to purchase a baby monitor directly from a retailer. This can be a convenient option, as it allows you to pay for the monitor at the point of purchase. Using your HSA or FSA debit card to purchase may be the best option because the reimbursement process can take some time!
- Reimbursement process: If you purchase a baby monitor with another form of payment and want to be reimbursed, you’ll need to go through the reimbursement process. This involves submitting a claim for reimbursement to your plan provider, along with the receipt. Moreover, it’s important to remember that the reimbursement process can take some time. Hopefully, you don’t need the money right away.
Whether you purchase a baby monitor with your HSA or FSA debit card or go through the reimbursement process. The bottom line, keep your proof of purchases and follow the guidelines of your plan provider.
With the financial aspect sorted, let’s choose the perfect baby monitor for your family.
Tips for Choosing the Right Baby Monitor
When I bought my first baby monitor, I was overwhelmed by the options available. But now, I can help other parents by sharing tips on choosing the right baby monitor according to your needs.
These 5 baby monitor types or sorted from the most basic option to the “hospital-grade” option.
- Audio monitors: Audio monitors are the classic type of baby monitor. They allow you to hear any sounds in the nursery, such as crying or breathing. I have used this type of monitor, and it works just fine. The VTech DM221
, with its long-range signal, is a great option. - Video monitors: Would you like more than audio? You would like to see your baby. In that case, a video monitor with a camera is what you need. It lets you closely monitor your baby’s movements, breathing, and overall well-being. My favorite video monitor is The Eufy Baby, as it got all the quality features of a video monitor.
- Smart monitors: When you need the help of a monitor to warn you in case something isn’t right, smart monitors might be ideal for you. Smart monitors are a newer type of baby monitor that uses technology such as artificial intelligence to monitor a baby’s movements, sounds, and vital signs. These types of monitors are really similar to video monitors. Still, they got extra features that could be useful to parents anxious about their child’s well-being. If it’s your case, then I recommend the Nanit plus monitor.
- Movement monitors: Now, we are in the more advanced baby monitor category. The movement monitors have a sensor pad designed to detect movement in the baby’s crib. It can detect even the slightest movements, such as breathing. These monitors are especially helpful for premature infants who may be at an increased risk for sudden infant death syndrome (SIDS) or other respiratory issues. If that is your case, the Angelcare AC517 is a good movement monitor, and you can order it from Amazon.
- Vital sign monitors: Similar to movement monitors, vital sign monitors are great for a baby who needs constant monitoring. This type of baby monitor comes with a wearable element (sock or wristband) that monitor a baby’s heart rate and oxygen saturation levels. These monitors are often used in hospitals for premature infants. The most popular monitor in this category is the Owlet Smart Sock. Probably the most expensive baby monitor out there, but definitely worth it if you need that constant monitoring.
Note that the type of baby monitors most appropriate for your child may depend on his specific needs and medical condition. Most parents will opt for a video baby monitor. Still, it’s not most parents need the same level of monitoring. Don’t just go for the most expensive option from this list. Please consider your child’s needs first.
Now that you know which baby monitor to get and how to get reimbursed by your insurance, let’s wrap things up!
Conclusion
Remember, not all baby monitors are eligible for expenses covered by HSA or FSA. It’s important to check with your plan provider before making a purchase. Investing in a good baby monitor that meets your child’s needs is important whether or not the purchase is covered.
So invest in that baby monitor, and sleep a little easier knowing your little ones are safe and sound.
P.S. If you’re seeking for the best baby monitor and hoping to find real reviews from real parents. You should check out this list I created of the top baby monitors.
To get the best insights and tips to find the best baby monitor, I read more than 300 reviews online and ask my friends or others parents. From all their insights and my own experience, I’ve built this list of the best baby monitors.