IRS Confirmed
According to IRS Publication 502, the cost of hearing aids and batteries are fully tax-deductible medical expenses. This confirms their eligibility for both FSA and HSA reimbursement.
If you have employer-sponsored health insurance, you likely have access to a Flexible Spending Account (FSA) or Health Savings Account (HSA). These accounts allow you to set aside money from your paycheck before taxes are taken out. Because hearing aids can cost several thousand dollars, utilizing these funds is equivalent to receiving a 20% to 35% discount, depending on your tax bracket.
What is Eligible?
You can use your FSA or HSA card to pay for almost every aspect of hearing healthcare, including:
- Hearing Aids: The full cost of the devices themselves.
- Batteries: Both disposable (zinc-air) and rechargeable replacements.
- Maintenance: Repairs, wax guards, and dehumidifiers.
- Copays & Deductibles: Any fees you pay for the hearing exam or office visit.
Note: While hearing aids are eligible, “hearing protection” (like standard earplugs for sleeping) generally is not, unless prescribed by a doctor for a specific medical condition.
FSA vs. HSA: Knowing the Difference
While both save you money on taxes, they have very different rules regarding “rollover”—what happens to the money if you don’t spend it by December 31st.
| Feature | Flexible Spending Account (FSA) | Health Savings Account (HSA) |
|---|---|---|
| Who Owns It? | Your employer. | You (it is your personal bank account). |
| Eligibility | Available with many employer plans. | Only available with High Deductible Health Plans (HDHP). |
| Rollover Rule | “Use It or Lose It.” Most funds expire Dec 31. Some plans allow a small rollover amount or grace period. | Funds Never Expire. They roll over year after year and can grow with interest or investment. |
| Contribution Limit (Approx. 2025) | Around $3,300 per year (varies by IRS rules). | Around $4,300 (individual) / $8,550 (family), depending on IRS limits. |
Strategic Planning
For FSA Users: The End-of-Year Rush
Because FSA funds often expire, the last quarter of the year (October–December) is a critical time for hearing care. If you have a balance remaining, purchasing a set of hearing aids or stocking up on a year’s supply of batteries is an excellent way to ensure your money isn’t forfeited back to your employer.
The “Two-Year” Stack
If your hearing aid cost exceeds your annual FSA limit, ask your audiologist if you can split the bill. You might pay a deposit in December using this year’s funds, and pay the balance in January using next year’s funds. This allows you to apply two full FSA years toward one pair of hearing aids.
Handling “Bundled” or Denied Claims
Using pre-tax funds is also a great safety net for unexpected billing issues. A common scenario involves “bundled” codes (for example, denial code CO-97).
This happens when an insurance company determines that a specific service (like an office visit) should have been included in the price of another procedure (like a hearing test). While “CO” codes usually mean the provider must write off the balance, other denials (like “PR” or patient responsibility) leave you with a bill.
For example, if your insurance pays for the hearing test but denies the “hearing aid evaluation” as a non-covered service, you can use your FSA/HSA card to pay that specific balance instantly, rather than paying entirely out-of-pocket.
The Bottom Line
Don’t leave money on the table. If you need hearing aids, check your FSA or HSA balance as soon as possible. Using pre-tax dollars effectively lowers the out-of-pocket price of premium technology, making better hearing more accessible.