Millions of Americans are sitting on a small fortune in their Health Savings Account or Flexible Spending Account, completely unaware they're about to lose it. In 2023, U.S. workers forfeited approximately $4.5 billion in unspent FSA contributions. If you're reading this in late fall or early winter, there's a good chance you could be one of them.
FSAs generally have a strict "use-it-or-lose-it" mandate, which means any money left over at the end of each year must be forfeited. HSAs don't have this restriction, but many people still leave substantial funds unused simply because they don't know what qualifies. The solution? Laboratory testing.
Lab fees are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), or a health reimbursement arrangement (HRA). Unlike many healthcare expenses, lab tests don't require a doctor's visit or prescription. This makes them one of the most accessible ways to use your health account funds meaningfully.
Understanding Your FSA Deadline
Most FSA plans end on December 31st, giving you a hard deadline. Check whether your company's plan year ends on Dec. 31: most do, but there are some employers whose plan year ends in a different month. Your benefits administrator can confirm your specific deadline.
Some employers offer slight relief through carryover options or grace periods. Some employers offer either a grace period of up to 2.5 extra months to spend your balance on eligible new expenses or allow you to carry over a set amount: up to $680 this year. However, your employer can either offer a rollover or grace period, but not both.
The carryover option has limitations. If your employer allows it, unused funds can only roll forward once. Since that money carried over, it can't carry over to Year 3, so you'd lose it at the end of Year 2. This makes strategic spending crucial.
Why Lab Tests Make Perfect Sense
Laboratory testing offers unique advantages for using health account funds. Lab fees are part of visiting a medical doctor and receiving health care in a hospital or clinic, they do not require a prescription or Letter of Medical Necessity (LMN) in order to be considered eligible for reimbursement. This removes the biggest barrier many people face when trying to spend FSA dollars.
The IRS defines qualified medical expenses broadly when it comes to lab work. Medical Expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness.
Modern lab testing companies have made the process remarkably simple. You can order tests online, pay with your HSA or FSA card directly, and get results without ever stepping into a doctor's office. With Labcorp OnDemand, there's no need for a doctor's appointment: you can purchase tests directly and use your HSA or FSA dollars to cover the cost.
Essential Tests to Prioritize
When you're racing against a deadline, focus on tests that provide the most health value. Blood pressure tests, cholesterol tests, colorectal cancer screening, diabetes tests, HIV tests, syphilis tests, bone mineral density tests, mammograms, cervical cancer screenings, and prostate cancer screenings are all commonly recommended screening tests.
A comprehensive wellness panel serves as an excellent starting point. The CMP blood test is a crucial general health panel. It assesses various aspects of your metabolism, liver and kidneys. This CMP blood test measures essential components in your blood (including sugars, minerals, electrolytes, enzymes and waste products) that contribute to your overall health. Most comprehensive panels include a Complete Blood Count, Comprehensive Metabolic Panel, and lipid testing.
Gender-specific panels offer targeted insights. For men, a men's health panel typically includes testosterone screening, prostate markers, and cardiovascular risk factors. Test key men's biomarkers for in-depth hormonal, metabolic and heart health insights. Similarly, a women's health panel focuses on hormone levels, thyroid function, and reproductive health markers. Explore key biomarkers to gain insights into hormonal, metabolic and heart health for women.
Thyroid function testing deserves special consideration. Test TSH, free T3, free T4, and TPO levels to assess thyroid health. Thyroid disorders affect millions of Americans, yet many cases go undiagnosed because symptoms develop gradually.
Strategic Planning for Different Scenarios
Your approach should vary based on how much money you need to spend. With less than $200 remaining, a basic metabolic panel or Complete Blood Count provides valuable health insights. These foundational tests establish baseline values for future comparison.
For moderate amounts ($200-500), consider comprehensive panels that bundle multiple tests. Lipid Panel: Measures total cholesterol, LDL, HDL, and triglycerides · Comprehensive Metabolic Panel (CMP): Evaluates kidney and liver function, blood sugar, electrolytes, and protein balance · Complete Blood Count (CBC) with Differential offers extensive health information in one package.
Higher balances ($500+) open doors to specialized testing. Cardiovascular risk assessment, food sensitivity panels, vitamin D status, and inflammatory markers all provide actionable health data. From Basic to Advanced Testing: Ulta Lab Tests offers everything from basic blood counts and cholesterol checks to advanced genetic screenings. This range means you can get comprehensive health insights under one roof.
The Privacy Advantage
Direct-pay lab testing offers significant privacy benefits. We do not bill insurance directly, but you may use HSA or FSA funds. This keeps your results and testing completely private from insurers. Your test results don't appear in your medical records or impact future insurance coverage. This privacy protection can be valuable for tests related to mental health, sexual health, or genetic predispositions.
The ability to test without a healthcare provider visit also removes barriers for people who might be embarrassed about certain health concerns or who have difficulty scheduling appointments. You maintain complete control over your health information.
Making the Most of Your Investment
Lab testing isn't just about spending money before you lose it. It's about investing in your long-term health. Regular labs are a cornerstone of preventive healthcare. It empowers you with information about your health, enabling timely interventions and informed decisions. By using tools like FSA and HSA at facilities like Ulta Lab Tests, you can make these essential health check-ups a regular part of your healthcare routine.
Establish a baseline now, and you'll have reference points for future testing. Many health conditions develop slowly over years. Having comparative data helps healthcare providers identify trends and make earlier interventions.
Consider timing your tests strategically. If you're planning to start a new exercise program, modify your diet, or begin supplements in the new year, baseline testing provides a clear before-and-after comparison.
Common Mistakes to Avoid
Don't wait until the last week of December to start planning. Popular tests may have scheduling delays, and you want time to review results properly. Roughly half of FSA owners forfeited money in 2023; the average amount was $436, often because they waited too long to act.
Avoid duplicate testing unless medically justified. If your doctor recently ordered similar tests, focus on different health areas or wait for appropriate intervals. Most basic panels should be repeated annually, while specialized tests might be needed less frequently.
Remember that HSA funds never expire, unlike FSA money. HSAs do not come with a use-it-or-lose-it provision: you can leave the money in the account as long as you want. This makes HSAs more flexible for health planning, but you can still use them strategically for current health assessment.
Taking Action
Start by checking your HSA or FSA balance through your benefits portal or card provider website. Most plans offer an online portal where you can review your balance, submit claims and check deadlines. Confirm your plan's specific deadline and any carryover provisions.
Don't let valuable health dollars disappear into your employer's coffers. Lab testing provides a practical, accessible way to invest in your health while maximizing your benefits. Whether you need a simple wellness check or comprehensive health assessment, using your HSA or FSA for laboratory testing transforms a potential loss into a health investment.
The best part? You can order tests online, pay with your HSA or FSA card, and get results without navigating insurance approvals or doctor visits. It's healthcare on your terms, funded by money you've already set aside for exactly this purpose.
Frequently asked questions
This article is for informational purposes only and does not constitute medical advice. Always consult with a healthcare provider regarding any health concerns. LevelPanel does not diagnose, treat, or prescribe.