Can I Make COBRA Payments with HSA Funds?

When it comes to managing healthcare costs, an HSA (Health Savings Account) can be a valuable tool. However, many people are often unsure about the specifics of what can and cannot be paid for using HSA funds. One common question that arises is whether COBRA payments can be made with HSA funds.

COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, allows individuals to continue their employer-sponsored health insurance coverage for a limited time after losing their job or experiencing a qualifying event. While COBRA premiums can be expensive, they are considered an eligible expense under an HSA. This means that you can use your HSA funds to pay for COBRA premiums.

It's important to note that COBRA payments are only eligible for reimbursement through an HSA if they are for health insurance coverage. Additionally, you cannot use HSA funds to pay for a plan that covers only non-medical benefits, such as dental or vision care.

Have you ever wondered if you can use your Health Savings Account (HSA) funds to cover COBRA payments? It’s a common question among those who find themselves in a tight financial situation after losing their job.