FSA Eligible Items at Walmart in 2024: Your Complete Guide

Flexible Spending Accounts (FSAs) are becoming an increasingly popular way for consumers to save on healthcare costs. According to IRS data, over 30 million Americans used FSAs in 2021, with average savings of 30% on medical expenses.

But where can you spend those pre-tax FSA dollars? With its convenient locations, Walmart offers one of the biggest selections of FSA-eligible items including over-the-counter medicines, diabetes care, braces, family planning products, and more.

This definitive guide will provide everything you need to know about tapping into your FSA funds when shopping at Walmart.

FSA Usage Statistics and Potential Savings

• Over 30 million Americans used FSAs in 2021, up 15% since 2020
• The average employee saved $803 through an FSA in 2021
• By contributing the $3,050 max, families could save over $900
• Top FSA purchases are prescriptions, doctor copays, glasses and contacts

Simply by funneling these routine healthcare costs through an FSA, consumers can save 30% or more due to the tax advantages. This makes FSA enrollment incredibly worthwhile for anyone expecting regular medical expenses.

What Qualifies As an FSA-Eligible Purchase?

FSAs are fairly flexible (as the name implies), but you still have to follow guidelines on which products qualify for reimbursement. A general rule is that items classified as "medical care" in IRS Tax Publication 502 are eligible. Most commonly this includes:

• Prescription medicine
• Over-the-counter drugs like pain relievers
• Pill organizers and first aid kits
• Birth control and fertility products
• Contact lens supplies and reading glasses
• Heating pads, compression socks, canes and wheelchairs

Each FSA plan may have slight differences in their policies, so check your specific list to be sure. Also note that doctor visits, dental work and prescriptions generally require a prescription or doctor‘s note to qualify.

Walmart vs Competitors: FSA-Eligible Brands Carried

Walmart carries all the major FSA healthcare brands consumers know and love across categories. Their offerings can compete with top pharmacies like CVS.

The Benefits of Using FSA at Walmart

Opting to spend your FSA funds at Walmart offers multiple advantages including:

Convenience: With over 4,700 US stores containing pharmacies and medical supplies, finding a Walmart location is simple. This makes picking up health items fast and easy.

Huge product selection: From high blood pressure monitors to pill organizers and everything in between, Walmart is truly a one-stop FSA shop.

Special designations: Walmart‘s website features an entire page listing 200+ items that qualify along with filtering options to narrow your search. No more guessing!

In-store FSA card use: When paying in-person, you can immediately tap your FSA debit card rather than needing reimbursement. This gives real-time access to your pre-tax savings.

For all these reasons, Walmart is an excellent retailer for maximal FSA convenience and selection. The key drawback is…

The Hassle of Online FSA Reimbursements

Currently, Walmart.com and the mobile app do not directly accept FSA cards as payment methods. So any online orders will require submitting receipts to your FSA administrator for processing.

The typical reimbursement process involves:

1. Placing an online Walmart order for FSA-eligible items using your chosen payment method
2. Receiving an email receipt showing your order details
3. Logging into your FSA provider‘s portal and selecting "File a Claim"
4. Entering your total amount paid, uploading or attaching the Walmart receipt
5. Waiting up to 30 days for the reimbursement deposit into your chosen bank account

While only adding 1-2 minutes per transaction, this can grow tedious over many orders. But other major chains like Amazon and Target have the same limitation. So it‘s an industry-wide issue until more robust FSA integrations emerge.

Weighing FSA Cards Against Other Payment Methods

When shopping for FSA items specifically, what are the pros and cons of paying with your designated FSA card versus an alternative?

FSA Card

Pros:

• Immediate access to FSA funds if bank balance sufficient
• Works for both in-store and select online FSA merchants
• Auto-validates eligibility of items purchased
• Provides real-time tracking of FSA account activity

Cons:

• Need separate payment method for non-FSA items
• Some setup and activation required
• Not accepted everywhere (including Walmart.com)

Regular Credit/Debit Card

Pros:

• Accepted in more online stores like Walmart.com
• Simpler process for mixed FSA and non-FSA purchases
• Can earn rewards points on spending

Cons:

• Need to submit claims and await reimbursement
• Paying upfront means less accessible pre-tax savings

Ultimately it‘s wise to have both an FSA debit card and general spending card on hand when shopping to maximize convenience and rewards.

Conclusion

With low prices across healthcare categories, Walmart empowers customers to get more from their FSA dollars. A few quick taps of an FSA card in-store makes enjoying 30%+ discounts on essential medical purchases a breeze.

While online ordering through Walmart.com involves slightly more effort submitting receipts for reimbursement later on, you can still reliably invest your FSA funds across their catalog of eligible products. Compared to other major retailers, Walmart provides exceptional access to the brands and items consumers need most.

So if you have an FSA through your health plan, be sure to take advantage by factoring Walmart shopping into your 2023 medical spending strategy.