ICHRA Health Wallet: Black Friday and Cyber Monday Power Moves

Here’s a wild stat: About half of all Health Wallet and Flexible Spending Account (FSA) money—billions of dollars—goes unused and is forfeited every year. That's your hard-earned compensation just vanishing.

With Black Friday and Cyber Monday here, this is your final opportunity to use those funds before they expire on December 31st.

What's a Health Wallet, Anyway?

It's a catchall term for the pre-tax money you've stashed away for medical expenses. This includes funds from an Individual Coverage Health Reimbursement Arrangement (ICHRA). How do you get a Health Wallet? You get the wallet when you pick an individual health plan that is less expensive than the employer budget allocated to you under an ICHRA.

The Catch: December 31st is the Spending Deadline!

Many people use their Health Wallet on the obvious things—prescriptions or co-pays. But many others struggle to spend the remaining funds, which is why so much money is forfeited every year.

Need ideas on how to spend your Health Wallet?

Here’s 5 Smart Ways to Use Your ICHRA Health Wallet Funds 

We frequently get asked about eligible uses for the ICHRA Health Wallet. The IRS rule on this is simple: expenses must be medically necessary. 

Examples of clear expenses include medication for the flu or co-pays for doctor visits. Other items are less obvious, such as Botox. While purely cosmetic Botox is ineligible, its use for treating medical conditions like migraines can be covered. 

A simple doctor's note expands the scope of what is considered medically necessary. You can obtain this documentation from your doctor or by using a dedicated service like TrueMed. These are our favorite use cases.

1. Invest in a Good Night’s Sleep

Ever think about how much sleep affects your life? It’s not just a mood thing! When we undersleep, it has huge knock-on effects, contributing to problems like diabetes, worsening joint health, suppressing your immune system, and increasing feelings of anxiety and depression. If you're ready to invest in better rest, take a look at the smart bed options from companies like Eight Sleep (similar to Elight Sleep) or Nectar. Or invest in a Hatch alarm clock (an all-in-one sleep sound machine and sunrise simulator), a weighted blanket, or light therapy lamps to improve your daily rhythm.

2. Book a Massage to Get You Through the Stress of the Holidays

The holiday season is joyful, but let’s be honest—it’s also packed with stress! Between the shopping crowds, travel, hosting, and wrapping up end-of-year deadlines, stress manifests physically as tension, headaches, and a lowered immune system.

The Benefit of Massage: Massage therapy is scientifically proven to help manage stress by lowering cortisol levels and boosting feel-good neurotransmitters like serotonin and dopamine. This helps release muscular tension, calm your nervous system, and restore a sense of well-being, which is exactly what you need to survive the chaos!

Your Health Wallet Hack:To use your ICHRA funds, you must obtain a Letter of Medical Necessity stating that massage therapy is necessary to treat your condition. Conditions often qualifying for prescribed massage include:

• Chronic back/neck pain
• Tension headaches or migraines
• Muscle spasms due to injury or chronic stress

You can get this note from your doctor or through a service like Truemed. Once you have the documentation, book your appointment, pay, and submit your receipt for reimbursement!

3. Get a New Pair of Glasses (or Sunglasses)

This is one of the easiest, most straightforward ways to use your remaining Health Wallet balance before the end of the year.

 What's Covered?

• Prescription Eyewear: Standard eyeglasses and prescription sunglasses.
• Contacts & Supplies: Contact lenses and solutions.

This category is a universally eligible medical expense under IRS rules and does not require a doctor's note or LMN.

Where to Shop: You can easily use your funds with major retailers and online providers like Warby Parker. Use your remaining balance to finally upgrade those scratched lenses, grab a second pair of prescription sunglasses for safer driving, or simply stock up on supplies for the next six months.

4. Restock Your First Aid Kit

Restocking your medicine cabinet and first aid kit is one of the easiest, no-paperwork ways to spend down your remaining balance before the December 31st deadline.

Use your Health Wallet funds now on these essentials:

• Pain & Fever: Pain relievers (Aspirin, Ibuprofen, Tylenol), anti-inflammatory medication.
• Cold & Flu: Cough syrup, throat lozenges, decongestants, cold and flu remedies.
• First Aid: Bandages, gauze, antiseptic wipes/ointments, first-aid kits, hot/cold packs.
• Allergy & Sinus: Antihistamines, nasal sprays, and allergy medications.
• Feminine Care: Tampons, pads, menstrual cups, and menstrual pain relief products.
• Digestive Health: Antacids, acid controllers, laxatives, and anti-diarrheal medicine.
• Home Health: Digital thermometers, blood pressure monitors, athletic braces/supports, crutches.
• Sun Protection: Sunscreens with SPF 15 or higher.

A few notes:

• Before 2020, over-the-counter medications like Tylenol and allergy pills required a doctor's prescription. Thanks to the CARES Act, that rule is gone! You no longer need a doctor's note for the vast majority of OTC drugs and supplies. 

• General vitamins and supplements still typically require a Letter of Medical Necessity (LMN) for reimbursement. Prioritize the drugs and supplies listed above for easy, hassle-free spending!

5. Why Wait Until Jan 1 to Start Your Fitness Resolutions?

The best time to start is now, and your Health Wallet funds are the perfect catalyst to invest in your health today.

With a Letter of Medical Necessity, you can use your tax-advantaged dollars to turn your resolution into reality right away.

• Pay for Your Gym Membership: Put your funds toward the expense of a gym membership or  specialized fitness programs, like yoga, pilates, or CrossFit to get moving before the New Year rush.
• Invest in a Home Gym: Stop paying month-to-month fees. Use your Health Wallet to invest in durable, lasting assets like a Peloton, high-end elliptical, or an adjustable weight system. Build a permanent home fitness setup that pays off for years.

You worked for this money. Now it's time to use it.

For both FSAs and ICHRA funds, December 31st is the final day you can spend the money. Though you typically have until March 31st to submit those receipts (the "run-out" period), the expense must be incurred by the cutoff. Always save your receipts, plus the required doctor’s prescription or Letter of Medical Necessity for eligible items.

Want to learn about Health Wallet options for 2026? The rules, contribution limits, and affordability standards for ICHRAs and FSAs often change annually. Understanding your options now is key to maximizing your healthcare finances.