What Can I Purchase on HSA Card?

When it comes to managing your health savings account (HSA), it's important to know what you can purchase using your HSA card. An HSA card works like a debit card, allowing you to pay for eligible medical expenses tax-free. Understanding what you can and cannot buy with your HSA card will help you make the most of this valuable financial tool.

So, what can you purchase on an HSA card?

• Prescription medications: Your HSA funds can be used to pay for prescription drugs prescribed by a healthcare provider.
• Doctor's visits: Co-payments, deductibles, and other out-of-pocket costs for visits to doctors, specialists, and urgent care centers are eligible expenses.
• Medical supplies: Items such as bandages, contact lens solution, and blood sugar test kits are typically covered.
• Dental care: HSA funds can be used for dental treatments like cleanings, fillings, braces, and dentures.
• Vision care: Eye exams, glasses, contact lenses, and even Lasik surgery are considered eligible expenses.
• Medical procedures: Surgeries, lab work, x-rays, and other medical procedures prescribed by a healthcare provider are covered.
• Over-the-counter (OTC) medications: As of 2020, you can use your HSA funds to buy certain OTC medications without a prescription.

It's essential to keep receipts and records for all HSA purchases to prove that they were for qualified medical expenses if the IRS ever requests verification.

Remember, not everything is eligible for purchase with your HSA card. It's crucial to familiarize yourself with the IRS guidelines on HSA-eligible expenses to avoid any penalties or taxes. Items like health club memberships, cosmetic procedures, and non-prescription vitamins are generally not covered.

When managing your health savings account (HSA), it’s essential to know the full range of eligible expenses you can purchase using your HSA card. An HSA card functions like a debit card, allowing you to spend money tax-free on qualified medical costs.

So, what can be purchased with an HSA card? Let’s dig deeper!

• Prescription medications: HSA funds cover prescription drugs that your healthcare provider prescribes, including necessary treatments.
• Doctor’s visits: You can use your HSA funds for co-pays, deductibles, and other costs associated with visits to doctors and specialists, including urgent care appointments.
• Medical supplies: Typical items like first-aid supplies, contact lens solution, and blood glucose meters are all eligible for HSA spending.
• Dental care: Payments for dental care treatments such as cleanings, fillings, orthodontia, and other dental procedures can be made with HSA funds.
• Vision care: Use your HSA for expenses related to eye exams, corrective eyewear, and even surgery like Lasik, which can enhance your vision.
• Medical procedures: Costs for surgeries, lab tests, x-rays, and any necessary procedures recommended by a physician are covered by your HSA.
• Over-the-counter (OTC) medications: As of 2020, OTC medications can be purchased with HSA funds without needing a prescription, broadening your spending options significantly.

Keep in mind that retaining receipts and documentation of all your purchases is vital. This helps verify that your transactions were for qualifying medical expenses should the IRS ask.

Also, be aware that not every expense is eligible. Familiarizing yourself with IRS guidelines on HSA-eligible purchases will help you steer clear of unwanted penalties or taxes. For instance, expenses such as gym membership fees, cosmetic surgery, and dietary supplements generally don't qualify.