Is LYNX Smart Ring HSA/FSA Eligible?

Do you want to pay for the RENPHO LYNX Smart Ring with your FSA or HSA fund? Learn more about FSA, HSA, and their eligibility.

Interested in the new LYNX Smart Ring from RENPHO? It’s a great way to stay on top of your health, activity, and sleep. Between its comfortable fit, accurate sensors, and extended battery life, the LYNX will keep you updated on your heart rate, sleep quality, and more for up to two weeks on a single charge.

Smart rings are among the more premium options in the smart health device category. If you’re enrolled in an FSA or HSA program, you might be able to use those funds to reimburse your purchase of the RENPHO LYNX Smart Ring.

What Are FSA (Flexible Spending Account) and HSA (Health Savings Account)?

For those of you who don’t know or need a refresher, HSA and FSA are two pre-tax savings accounts that you can use to pay for medical expenses.

What Is a Flexible Spending Account (FSA)?

A flexible spending account (FSA) is a savings account sponsored by the employer. It allows employees to set aside a portion of their earnings before taxes. These pre-tax funds can be used to reimburse eligible medical, dental, and vision expenses, helping reduce out-of-pocket healthcare costs.

However, for self-employed workers, the FSA can only be paid by an employer. On the upside, employees don’t need to have a high-deductible health plan (HDHP) to qualify for this particular savings account type.

(What’s an HDHP plan, you ask? It’s a health insurance plan with low premiums and higher out-of-pocket costs. You don’t have to pay a lot for it each year, but it’ll only start paying for your healthcare once your expenses reach a certain amount.)

Aside from your pre-tax contributions, your employer can also add pre-tax funds to the FSA. They’re not legally obligated to do so, but your employer can save even more on their taxes.

While the employee benefits from the FSA, it doesn’t belong to them. It’s the property of their employer. If the employee quits their job, they’ll lose their FSA. However, if they qualify for the Consolidated Omnibus Budget Reconciliation Act (COBRA), employees can retain FSA coverage for a limited period of time under certain circumstances.

Furthermore, the FSA expires at the end of the plan year. Any funds remaining in the savings account go away, forcing employees to spend them or lose them. Some employers might extend a grace period or permit some (but not all) funds to carry over to the new year.

The IRS sets the annual limit for FSA funds. Depending on the revenue service’s decisions, the total funds in an FSA can change from year to year.

What Is a Health Savings Account (HSA)?

The HSA is another type of savings account used to cover medical expenses. Like the FSA, it collects pre-tax income contributed by the employee.

However, the similarities end here. First, a HSA is a personal savings account. It belongs to the individual, not the employer. Unlike FSAs, unused funds roll over from year to year and remain in the account. The HSA is also portable and stays with the employee when they stop working or find a new job.

Second, HSA funds aren’t limited to medical expenses. It’s possible to invest them in other things, much like a retirement account, although the employee is still working. However, they’ll become subject to taxes if you withdraw funds for non-eligible medical expenses before you turn 65.

Third, HSAs are restricted to HDHP enrollees. Medicare beneficiaries aren’t eligible for an HSA since they’ve already retired. Neither are dependents covered by another insurance plan.

The biggest advantage of an HSA is its triple tax benefit. You don’t have to pay federal income tax on your contributions. Any earnings from investments made with HSA funds won’t incur tax. And withdrawals won’t get taxed, either, if they’re for medical expenses covered by the savings account.

The IRS sets the contribution limit for HSAs. Compared to FSA limits, HSA limits are usually higher, especially if the HSA member is supporting the family or is at least 55 years old.

HSA vs. FSA: How Are They Different?

Here’s a side-by-side comparison of HSA vs. FSA to highlight the differences between the two savings accounts:

Is the RENPHO LYNX Smart Ring HSA/FSA Eligible?

Yes. The RENPHO Smart Rings qualify as a health tracking device, which makes it eligible for purchase using your HSA or FSA funds. You can find the LYNX Smart Ring listed among RENPHO’s collection of HSA/FSA-approved smart health products on the second page of the collection.

RENPHO’s also made it easier to purchase eligible smart health products by teaming up with Flex Technology Co. You can now check out directly with your FSA or HSA card when buying qualified products like the LYNX Smart Ring.

How to Purchase Directly with an HSA or FSA card?

Buying the LYNX Smart Ring with your HSA or FSA card is similar to making any other online purchase.

When you’re checking out your purchased product, you’ll choose your method of payment. Select “HSA/FSA Cards” and then “Continue with Flex.” RENPHO will direct you to Flex, its partner that handles HSA/FSA reimbursements.

Flex will bring up a window where you can review your order. You’ll see the subtotal for the items that you can purchase with your HSA or FSA card.

If you bought products that aren’t eligible for HSA or FSA reimbursement, they’ll appear in a separate subtotal. You’ll need a separate credit or debit card to pay for them.

Enter the required information from your HSA or FSA card. For non-HSA/FSA-eligible purchases, use a credit or debit card accepted by Flex and RENPHO.

Select the “Complete Purchase” option. It’ll finish your transaction. Flex will send a confirmation email to the address in your original order.

How to Partially Pay With an FSA/HSA Card?

Aside from paying for entire purchases, some shops do support partial authorization. These cards can pay for the part of the order that’s eligible for FSA/HSA reimbursement.

When you make a purchase with an FSA/HSA card that has partial authorization, the subtotal for FSA/HSA-eligible items is adjusted according to your card’s remaining balance. The other costs can be paid for with a credit or debit card.

To avoid issues at checkout, consult your service provider if they support partial authorization. This can ensure that your purchases go through smoothly.

Where Can You Get Your Receipt for Your HSA/FSA Provider?

Let’s say you’ve ordered a RENPHO LYNX Smart Ring. Now you need a receipt to confirm the item’s eligibility for reimbursement. Without the documentation, your insurance provider may not release funds to cover for the purchase.

That is why we partnered with Flex, a payment provider that makes it easy and straightforward. After completing your order, you’ll receive a confirmation email from us. This email includes an electronic receipt that details your purchase, including the product name and payment method. If the item qualifies under FSA/HSA guidelines and was paid for with your card, this receipt serves as proof of eligibility.

Keep in mind that FSA/HSA eligibility can vary depending on your employer’s plan or insurance providers. Some may require additional documentation, such as a letter of medical necessity or a more detailed invoice. It’s never a bad idea to contact your insurance provider and ask about their specific requirements for reimbursement.

If health is wealth, the RENPHO LYNX Smart Ring is worth its weight in gold. (If you’re curious, gold usually goes for more than $100 per gram, and the LYNX weighs 5 g while costing much less.) So, if you’re looking to make the most of your FSA funds before the plan year ends, investing in a health-tracking device like the LYNX Ring can be a smart move, especially when compared to the value of unused FSA dollars that may expire.

Sources

• https://www.irs.gov/publications/p969
• https://www.dol.gov/general/topic/health-plans/cobra
• ttps://www.forbes.com/advisor/investing/hsa-rollover/