Use It or Lose It — Get the Most From Your Health Dollars
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Understanding FSA and HSA Basics

When it comes to managing healthcare expenses, health insurance is only part of the story. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) can help you stretch your health dollars further but only if you use them wisely.
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Every year, Americans lose over $4.5 billion in unused FSA funds. That’s money that could be spent on essential health needs including nutritious, medically tailored meals.
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At Prado, we help food operators tap into that opportunity by making menus FSA/HSA-eligible, bridging the gap between food, medicine, and financial wellness.
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What Are FSAs and HSAs?

Flexible Spending Accounts (FSAs)

• Employer-sponsored benefit program.
  
• Funded with pretax dollars deducted from your paycheck.
  
• Covers qualified medical, dental, and vision expenses.
  
• Must be used within the plan year or you lose the balance.
  

Health Savings Accounts (HSAs)

• Available to individuals with high-deductible health plans.
  
• Lets you save, invest, and roll over unused funds annually.
  
• Acts as a long-term healthcare safety net and tax-saving tool.

How FSAs and HSAs Work

Limits and Smart Usage

Both FSAs and HSAs help you pay for qualified medical expenses using pretax dollars, reducing your taxable income.
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For 2025, contribution limits are:

• FSA: $3,300 per individual, $6,600 per household
  
• HSA: $4,300 per individual, $8,550 per family
  
  

HSAs also allow investment growth  funds can accumulate tax-free for future healthcare needs.
FSAs, however, come with the “use it or lose it” rule any unspent funds may vanish after your plan year ends.
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Why This Matters for Food Businesses
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Turning Missed Dollars Into Revenue

Each year, the average American forfeits nearly half their FSA balance. That’s billions of unused dollars that could have supported healthier eating and your business.

By partnering with Prado, you can:
✅  Make your meals FSA/HSA-eligible.
✅  Support medical nutrition therapy programs.
✅  Join the food-as-medicine movement that doctors and patients trust.
✅  Help make nutritious food financially accessible.

How Prado Works

Here’s how Prado makes participation simple and compliant:

1. Menu Review & Approval
   Our telemedicine partners review your menu for eligibility across conditions like diabetes, heart disease, and weight management.
   
   
2. Product Tagging & Eligibility
   Approved meals get tagged as FSA/HSA-eligible in your Prado catalog for compliant checkout.
   
   
3. Curated Medical Meal Plans
   Create condition-specific meal programs like Heart-Healthy, Diabetes-Friendly, or Weight Management that meet IRS 213(d) standards.
   
   
4. Compliant Checkout via Prado Pay
   Customers pay securely using FSA or HSA cards through HIPAA-compliant Prado Pay.
   
   
5. Instant Medical Necessity Verification
   Customers can upload a Letter of Medical Necessity or qualify instantly through Prado’s telemedicine partner.
   
   
6. Customers Pay with Pre-Tax Funds
   Turn leftover FSA/HSA balances into end-of-year sales while helping patients afford better nutrition.
   

The Takeaway

Partnering for Impact

Healthcare is evolving, and food is taking center stage. FSAs and HSAs aren’t just financial tools, they’re keys to better health and stronger business growth.

Prado bridges healthcare and nutrition by making it easy for food operators to become part of the solution — one compliant, medically tailored meal at a time.

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