Have Unused FSA Funds? Upgrade Your CPAP Therapy for Free

Are flexible spending accounts (FSA) part of your employee health benefits? Before the year ends, find out when the grace period expires and spend your unused FSA funds on sleep apnea supplies.

FSAs help cover your healthcare needs while bringing you tax savings. But all good things come with a price. In this case, FSA funds get forfeited at the end of a plan year.

While your employer might offer a rollover limit or grace period, it’s still a good idea to plan ahead and make the most of your tax-advantaged financial account. So in this post, we’ll share a list of FSA eligible CPAP supplies and ideas for improving your sleep therapy.

A flexible spending account (FSA) is a pretax savings account offered by your employer. It’s often part of a health benefits package to help you afford qualified medical costs, including those that aren’t covered by your insurance.

How It Works

When enrolling in an FSA, you’ll decide how much of your income before taxes to contribute, as long as it doesn’t go over the annual limit set by the Internal Revenue Service (IRS). Then, your employer deducts your declared contribution amount from your pretax earnings, lowering your taxable income and increasing your tax savings. 

Keep in mind that once you choose the contribution amount, you can’t change it until the following plan year. Also, when you use your FSA for buying prescription medicine, co-pays, and other qualified expenses, the funds withdrawn won’t be subject to tax.

One downside to this savings account is it operates on a use-it-or-lose-it policy. That means you have to use all the funds within the plan year or before your last day at the company. 

So what happens to leftover FSA money at the end of the year? You lose it, unless your employer offers a grace period (usually 2 ½ months) or lets you carry over unused FSA funds (up to $610) to use in the following year.

Another important thing to remember is your employer owns your FSA, not you. If you change jobs, you’ll no longer have access to your unused FSA funds.

If these limitations are unappealing, you might want to look into a healthcare savings account (HSA) instead. A HSA can also help you pay for healthcare expenses such as CPAP supplies, but the funds don’t expire at the end of the year. You can also invest your HSA money in mutual funds, bonds and stocks.

Learn more about the differences between HSA and FSA to see which plan helps you save more on healthcare.

Sure, making the most of an FSA can be tricky–what with its expiry date and other limits. But here’s the good news: a wide variety of CPAP products are considered qualified medical expenses.

Your employer, FSA administrator, and the IRS might have specific guidelines on the eligibility of medical expenses, so make sure to check with them before purchasing. But as long as you have a prescription, there are plenty of FSA eligible CPAP supplies you can buy–from CPAP tubing and machines to replacement CPAP mask parts and accessories.

So why not spend your leftover FSA money on products that’ll make your treatment easier? Here are some suggestions:

CPAP Machine

Apart from upgrading your current machine, here are a few reasons you should consider spending your unused FSA funds on a new CPAP device:

• Travel with on-the-go comfort – What better way to use your year-end FSA funds than getting a travel CPAP for the holidays? If you’re planning a vacation, you can continue your sleep therapy during your trip while keeping your FSA money from going to waste.

• Backup for emergencies – Whether you’re not ready for a new machine yet or have no travel plans in the near future, consider getting a backup CPAP machine. In case your main CPAP device malfunctions or needs servicing, having an extra unit in hand will keep you from missing a night of therapy. 

CPAP Mask

As you may already know, you have to replace your CPAP mask cushion every two months and your headgear and frame every six months. Doing so helps ensure leak-free nights and overall good mask fit.

So consider using your leftover FSA funds on replacement mask parts for a more comfortable therapy experience. Or if you’re having trouble with your current mask, treat yourself to a new sleep apnea mask altogether. It’s the perfect time to try out a different mask type and see which works best for your needs:

• Full face mask – Many full face masks today boast a smaller footprint than their traditional counterparts. Some have cushions that fit under the nose (rather than over your nose bridge), while others feature top-of-the-head tubing connection.

• Nasal pillow mask – For a minimalist design, you can’t go wrong with a compact nasal pillow mask. With soft prongs gently resting in your nostrils, they’re a lightweight solution for comfortable sleep.

• Nasal mask – Not a fan of the air pressure delivered by nasal pillows? You’ll want to switch to a lightweight nasal mask, which seals around or under your nose.

• No-headgear mask – The newest type of CPAP mask to date, no-headgear masks feature the most minimal designs, preventing common CPAP issues like overly tight headgear straps, skin irritation, and hair thinning.

CPAP Cleaner

Cleaning your CPAP equipment and supplies is an important step in prolonging their lifespan and achieving a safe and comfortable sleep therapy experience. Luckily, CPAP cleaning products qualify as medical expenses under FSA policies.

Dishwasher for Your CPAP

The Liviliti Paptizer UVC Cleaner, for instance, is like a dishwasher for your CPAP–without the need for water. Using multidirectional medical-grade UVC sterilization, it kills 99.9% of microbes on not just your CPAP mask and supplies, but also on your phone and any household item that fits inside the cleaner.

CPAP Accessories

Besides a CPAP cleaning machine, FSA eligible expenses that’ll make your nights more comfortable include CPAP accessories. Here are examples of products that’ll improve your CPAP setup:

• Chin straps – Now that you have some extra cash, we suggest giving CPAP chin straps a try. Designed to hold your mouth closed, they’re ideal for mouth-breathers who prefer to use a nasal mask or nasal pillow mask. Plus, they can prevent snoring and keep full face masks from leaking. 

• Hose lifts or holders – Does your tubing get tangled often? With a hose management solution, messy tubing and a cluttered sleep space will be a thing of the past.

CPAP Battery

Planning to buy a travel CPAP with your unused FSA funds? Remember to buy some CPAP batteries for a worry-free trip, especially if you plan to use your CPAP machine on a plane or off-grid.

Even if you don’t plan on using your machine away from home, you might still want a reliable CPAP backup power source that will kick in when the power goes out. By getting external CPAP batteries, along with compatible wall chargers or solar panel chargers, you can enjoy continuous therapy indoors or outdoors. 

Check out our CPAP battery review for our top battery picks of the year.

If you’re ready to purchase FSA eligible equipment from RespShop or other CPAP suppliers, here’s how to pay with your FSA money:

Direct Payment

Have an FSA debit card, online payment account, or checkbook? You can use any of them to directly purchase FSA eligible CPAP supplies. The money will be automatically sent from your FSA to the CPAP supplier. 

Reimbursement 

If you’ve already paid out-of-pocket for CPAP supplies, gather your receipts and invoices (and if needed, your prescription) and send them, along with your reimbursement claim, to your FSA administrator online. Then wait for the funds to be transferred from your FSA to your bank account.

Funded with pretax dollars, an FSA reduces your tax liability and lets you pay tax-free dollars on qualified medical products. But this savings account can only help you save money if you spend your funds before they get forfeited. So if the plan year is already coming to an end or if you’re planning to change jobs, it’s a good idea to use up all your FSA funds to invest in your health.

Here on RespShop, we carry various FSA eligible CPAP machines, supplies, and accessories. Upgrade to the latest CPAP equipment or treat yourself to the latest sleep apnea solutions that’ll enhance your therapy.