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What is and isn't covered by HSA? - A Comprehensive Guide

Published August 7, 2024

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Short answer: An HSA covers qualified medical expenses like doctor visits, prescription medications, medical procedures, dental care, and vision care, but it does not cover cosmetic procedures, over-the-counter medications without a prescription, health club memberships or fitness equipment, or non-prescription eyewear.

HSA overview and why coverage matters

Health Savings Accounts (HSAs) offer individuals a tax-advantaged way to save and pay for qualified medical expenses. Understanding what is and isn't covered by an HSA is essential for maximizing the benefits of this unique financial tool.

What is covered by an HSA:

  • Doctor's visits and consultations
  • Prescription medications
  • Medical procedures and surgeries
  • Dental care (including cleanings, fillings, and braces)
  • Vision care (including eye exams, glasses, and contact lenses)

What qualifies vs not covered

What isn't covered by an HSA:

  • Cosmetic procedures
  • Over-the-counter medications (without a prescription)
  • Health club memberships or fitness equipment
  • Non-prescription eyewear (sunglasses)

Health Savings Accounts (HSAs) are powerful financial tools that not only help you save for medical expenses but also provide tax advantages. Knowing what qualifies for HSA spending is key to making the most out of your hard-earned money.

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