While 2025 is in the rearview mirror, many HR pros still find themselves answering questions about flexible spending account (FSA) and health savings account (HSA) eligibility as employees look for ways to maximize their budgets, including how they spend health care dollars.
The good news? FSAs and HSAs are more flexible than ever, contribution limits are increasing, and 2025 spending showed a shift toward more personalized and diverse health care spending. From buying everyday essentials to engaging in telehealth services to splurging on wearable health tech, account holders are finding ways to use tax-free FSA and HSA funds in meaningful ways.
And for FSA users who have a March 15 grace period spending deadline, this is especially important.
If your HR team is looking for ways to educate and inspire employees to minimize FSA forfeitures and encourage engagement with HSAs, consider the following information about top trends in tax-free spending from the team at FSA Store and HSA Store.
Everyday health products continue to top the list. Traditional health care staples still top the list for FSA/HSA purchases, with steady demand for everyday essentials such as first aid kits, pain relief products, and over-the-counter medications. These remain reliable purchases for consumers looking to avoid forfeiture and update their medicine cabinets. The past year also brought growth in self-care categories such as skincare and sun protection, showing that employees are using their FSA dollars to take a more proactive approach to overall wellbeing.
Shoppers also embraced high-tech products across price points, such as devices to treat acne, wearable health trackers, heated massage guns, and red and blue light therapy devices to treat acne, eczema, and other skin conditions. As self-care becomes more tech-enabled, these choices are increasingly common, with roughly one-third of U.S. adults now using wearable health technology as part of their everyday wellness routines.
Vision and dental expenses, including eye exams, glasses, contacts, and dental checkups, continued to trend strongly among users with Limited Purpose FSAs.
FSA- and HSA-eligible telehealth services see surge. The global digital health market was valued at more than $420 billion in 2025, underscoring the widespread consumer and industry investment in digital health care. Given this information, it's not surprising that telehealth emerged as one of the fastest-growing FSA/HSA categories in 2025, giving account holders more flexibility and access to care than ever before. Employees used their tax-free funds to support clinical health needs from the comfort and privacy of home by engaging with telehealth services like virtual mental health counseling, sleep health, chronic pain support, and prescription weight loss medications.
Telehealth companies are redefining how consumers approach specialized care through at-home diagnosis, treatment, and ongoing monitoring and support, making it easier for many to maintain healthy changes. In fact, at the end of 2025, more than 54% of Americans had used telehealth services, highlighting the increasingly mainstream role virtual care now plays in health care routines.
If your organization offers an FSA with a March 15 grace period, telehealth can also improve health care access and affordability by making it easier for employees to schedule appointments for specialty services that can otherwise take weeks or months to secure.
Rules are rules. In addition to educating employees about how they can spend their FSA/HSA funds, it's important to educate them about a few universal rules. For example, some products and services may require a Letter of Medical Necessity (LMN) from a health care provider. Others may only qualify in certain circumstances, and not all FSA plans may cover all qualified expenses, so it's important to communicate with employees on the details of what their FSA plan will allow before they spend. In addition, the IRS prohibits purchasing more of one product than will reasonably be used within an FSA plan year (also known as stockpiling), so while it's good for employees to update their medicine cabinet or supply of menstrual care products or contacts, they should be reminded to do-so within reason.
If your organization offers an FSA with a grace period or runout period, or if you offer a partial carryover of unused funds, be sure to make your team aware of the rules related to these options and direct them to a reliable eligibility list to help them put funds to good use.
Be the resource employees need
Whether you're educating employees about consumer trends that could positively influence their own decision making or providing access to tools and resources they can use to manage their tax-free FSA or HSA funds, HR teams are a critical element to empowering individuals and families to make the most of their employer-sponsored benefits, while supporting their financial health now, and in the future.
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