What Expenses Can Be Paid From an HSA? - Understanding HSA Eligible Expenses

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare expenses while enjoying certain tax benefits. One common question that individuals have about HSAs is: what expenses can be paid from an HSA?

Here are some key points to help you understand what expenses are eligible to be paid from your HSA:

• Qualified Medical Expenses: Most healthcare-related expenses that are considered medically necessary are eligible for payment from your HSA. This includes doctor's visits, prescription medications, dental treatments, vision care, and more.
• Over-the-Counter (OTC) Medications: Thanks to recent changes in legislation, you can now use your HSA to pay for over-the-counter medications without a prescription.
• Medical Equipment and Supplies: Items like crutches, bandages, wheelchairs, and other medical supplies can be purchased using HSA funds.
• Alternative Treatments: Some alternative treatments like acupuncture, chiropractic care, and certain naturopathic therapies may also be eligible expenses.
• COBRA Premiums: If you're receiving healthcare coverage through COBRA, you can use your HSA to pay for these premiums.
• Long-Term Care: Premiums for long-term care insurance may also be paid from your HSA.

It's important to keep in mind that not all expenses are eligible for payment from an HSA. Here are a few expenses that are typically not considered HSA-eligible:

• Cosmetic Procedures: Most cosmetic surgeries and procedures are not considered medically necessary and therefore cannot be paid for with HSA funds.
• Health Club Memberships: While maintaining your health is important, expenses related to health club memberships are usually not HSA-eligible.
• Non-Prescription Supplements: Vitamins, supplements, and similar products that are not prescribed by a healthcare provider are generally not eligible expenses.

By understanding what expenses can and cannot be paid from an HSA, you can make the most of this valuable healthcare savings tool and ensure that you're using your funds wisely.

Health Savings Accounts (HSAs) are more than just a savings tool; they are a versatile financial resource that can help you manage your healthcare costs effectively. It's essential to know what expenses you can leverage to get the most out of your HSA.

In addition to the basic qualified medical expenses, your HSA can also cover preventive care services, which are vital for maintaining your overall health and wellbeing.