What Expenses Does HSA Qualify For? Understanding Eligible Health Savings Account Costs

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses, but many individuals are unsure of what expenses actually qualify under these accounts. HSAs offer tax advantages and flexibility, making them a popular choice for saving money on healthcare costs. To help you better understand the expenses that qualify for HSA funds, let's dive into the details.

Qualified health expenses that HSA funds can be used for include:

• Doctor’s visits and co-pays
• Prescription medications
• Medical procedures and surgeries
• Dental care, including cleanings, fillings, and braces
• Vision care, such as eye exams, glasses, and contact lenses
• Mental health services, including therapy and counseling
• Medical equipment, like crutches, wheelchairs, and hearing aids
• Chiropractic care
• Lab work and diagnostic tests
• Long-term care services

It's important to note that not all healthcare expenses qualify for HSA funds. Non-qualified expenses include things like:

• Cosmetic procedures
• Over-the-counter medications (without a prescription)
• Health club memberships
• Funeral expenses
• Child care

By understanding what expenses qualify for HSA funds, you can make the most of your account and save money on eligible healthcare costs. Be sure to keep track of your receipts and consult with a tax advisor if you have any questions about specific expenses.

Health Savings Accounts (HSAs) are not only a smart way to manage your healthcare costs, but they also come with unique tax benefits, like tax-deductible contributions and tax-free withdrawals for qualified medical expenses.