What Kind of Expenses Are Eligible Under an HSA?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs. One of the key benefits of an HSA is the ability to use it for a variety of healthcare expenses. When it comes to eligible expenses under an HSA, there are several categories that you can use your funds for:

• Prescription medications
• Doctor's visits and medical consultations
• Hospital fees and services
• Dental care, including cleanings, fillings, and orthodontics
• Eye care, such as vision exams, glasses, and contact lenses
• Mental health services, including therapy sessions
• Some over-the-counter (OTC) items with a prescription

It's important to note that not all healthcare expenses are eligible under an HSA. To ensure that you are using your HSA funds appropriately, it's essential to review the list of qualified expenses provided by the IRS. Some common expenses that are not eligible for HSA funds include cosmetic procedures, vitamins, and general health club dues.

By understanding what expenses are eligible under an HSA, you can make the most of your healthcare savings and ensure that you are using your funds wisely. Remember to keep track of your receipts and documentation for all HSA expenses to provide proper documentation if needed.

Health Savings Accounts (HSAs) provide an excellent way to manage your health care expenses efficiently. Using HSA funds for eligible expenses is not only beneficial for your health but can also lead to considerable savings. Eligible expenses generally encompass various categories, including:

• Prescription medications, which can significantly offset your out-of-pocket costs.
• Doctor's visits and medical consultations that allow you to seek necessary treatments.
• Hospital fees and services that may arise during urgent care or planned procedures.
• Dental care, covering everything from biannual cleanings to treatments like braces.
• Eye care, which includes everything from routine eye exams to purchasing corrective lenses.
• Mental health services, acknowledging the importance of mental wellness through therapy sessions and counseling.
• Some over-the-counter (OTC) items with a prescription, helping in managing minor ailments.

However, always remember that not every healthcare expense qualifies for HSA funding. Cosmetic procedures, general vitamins, and health club memberships typically fall outside the eligible category. Make sure to bank your HSA funds wisely and maintain documentation of your purchases.