What Expenses are HSA Eligible? - HSA Awareness Article

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. But what expenses are actually eligible for HSA funds?

Here is a comprehensive guide to help you understand what expenses qualify for HSA reimbursement:

• Medical Services: Doctor visits, surgeries, lab tests, and other medical treatments are typically HSA eligible.
• Prescriptions: Prescription medications and insulin are covered by HSAs.
• Over-the-Counter (OTC) Medications: Some OTC medications are eligible, but a prescription may be required.
• Dental Care: Dental exams, cleanings, fillings, and orthodontia are considered HSA qualified expenses.
• Vision Care: Eye exams, glasses, contact lenses, and Lasik surgery are eligible for HSA reimbursement.
• Mental Health Services: Counseling sessions and therapy services are often covered by HSAs.
• Medical Equipment: Items like crutches, wheelchairs, and home healthcare monitors may be eligible expenses.
• Long-Term Care: Qualified long-term care services are typically HSA eligible.
• Health Insurance Premiums: Some health insurance premiums are HSA qualified, such as COBRA, Medicare, and certain retiree health plans.
• Alternative Treatments: Acupuncture, chiropractic care, and certain alternative therapies may be covered by HSAs.

Remember to keep detailed records and receipts for all HSA expenses to substantiate your claims when needed. It's important to ensure that your expenses meet IRS guidelines for HSA eligibility.

Health Savings Accounts (HSAs) not only provide a means to save for medical expenses but also offer a pathway to enjoy significant tax benefits. Knowing what expenses qualify can help you maximize your savings and make the most of your account.

Here is a comprehensive look at what expenses are typically eligible for HSA reimbursement:

• Medical Services: Doctor visits, surgeries, lab tests, and treatments are generally considered eligible, allowing you to lean on your savings for necessary medical care.
• Prescriptions: Your copayments for prescription medications and insulin are covered, ensuring you can afford the medications you need to stay healthy.
• Over-the-Counter (OTC) Medications: While many OTC medications qualify, keep in mind that a prescription may sometimes be needed to ensure reimbursement.
• Dental Care: Routine dental exams, cleanings, fillings, and orthodontic treatments are also likely to qualify under HSA rules.
• Vision Care: Expenses related to eye exams, glasses, contact lenses, and even corrective surgeries like Lasik qualify for reimbursement.
• Mental Health Services: HSAs can cover counseling sessions and therapy services, making it easier to prioritize mental wellness.
• Medical Equipment: Items like crutches, wheelchairs, and other home healthcare equipment may also be considered HSA qualifying expenses.
• Long-Term Care: Don't overlook that qualified long-term care services are eligible for HSA funds, providing a safety net as healthcare needs grow.
• Health Insurance Premiums: Some premiums, including for COBRA, Medicare, and certain retiree health plans, can be paid using HSA funds.
• Alternative Treatments: Treatments such as acupuncture, chiropractic care, and some alternative therapies might also be eligible for reimbursement under HSAs.

It’s crucial to keep meticulous records and receipts for all HSA transactions so that you can substantiate claims when they arise. Always ensure your expenses align with IRS guidelines concerning HSA eligibility to avoid potential issues down the line.