Qualified HSA Expenses
Health Savings Accounts – Qualified HSA Expenses
Even though you receive a tax deduction by putting your money into a health savings account, the money is still yours to spend tax free, as long as you spend it on qualified medical expenses. With an HSA-compatible plan, this includes any expenses you incur from going to the doctor, purchasing prescription drugs, or paying other expenses toward your deductible. Once your deductible is met, the health insurance covers your medical expenses as defined in the policy. In addition to being able to withdraw your money tax free to cover these types of expenses (which might otherwise be covered by a traditional low-deductible high-premium policy), you can use your HSA account to cover other costs that would not normally be covered by a health insurance policy. Below is a list of the most common HSA qualified expenses:
HSA Qualified Expenses
| Acupuncture | Hearing aids | Post-nasal treatments |
| Alcoholism treatment | Laboratory fees | Prenatal care |
| Ambulance | Lasik surgery | Prescriptions |
| Artificial limb | Learning disability fees (prescription) | Prosthesis |
| Artificial teeth | Life-care fees | PSA test |
| Bandages | Lodging (for out-patient treatment) | Psychiatric care |
| Birth control pills (prescription) | Long-term care (medical expenses) | Psychiatrist |
| Breast reconstruction | Long-term care insurance | Psychoanalysis |
| Car special hand controls(for disability) | Meals (while receiving treatment) | Psychoanalyst |
| Chiropractors | Medical conferences (for ill spouse/dependent) | Psychologist |
| Christian Science practitioners | Medicare deductibles | Radium treatment |
| COBRA premiums | Nursing care | Smoking cessation programs |
| Contact lenses | Obsetrician | Special education for children |
| Cosmetic surgery (from trauma or disease) | Operating Room Costs | Spinal tests |
| Crutches | Organ transplant | Splints |
| Dental treatment | Orthodonture | Sterilization |
| Dermatologist | Orthopedic shoes | Telephone & TV for hearing impaired |
| Diagnostic devices | Orthopedist | Transportation expenses for treatment |
| Disabled dependent care | Out-of-pocket expenses (Medicare) | Vaccines |
| Drug addiction treatment (inpatient) | Over-the-counter medicine | Vitamins (if prescribed) |
| Eyeglasses | Oxygen and equipment | Wheelchair |
| Fertility enhancement | Pediatrician | Weight loss programs |
| Guide dog | Personal care services (for ill) | Wig (hair loss from disease) |
| Gynecologist Deductible | Podiatrist | X-rays |
| Health institute (if prescribed) | Post-nasal treatments |
Insurance Premiums That Qualify as HSA Expense
Most insurance premiums do not qualify as a health-savings-account expense, but there are a few including:
- Qualified long-term care insurance
- COBRA or State Continuation health care continuation coverage
- Health care coverage while an individual is receiving unemployment compensation
- For individuals over age 65 — premiums for Medicare A or B, Medicare HMO, an the employee share of premium for employer-sponsored health insurance
Expenses NOT Eligible for under an HSA
The following are expenses that are often mistaken as qualified HSA expenses, but are NOT eligible:
- Health insurance premiums other than those listed above, including Medicare Supplement, Medicare Part D Rx Plans, and Medigap policies
- Life insurance or income protective policies
- The hospital insurance benefits tax, withheld from you pay as part of the Social Security tax or paid as part of Social Security self-employment tax
- Nursing care for a healthy baby
- Travel your doctor told you to take for rest or change
- Cosmetic surgery (unless a wig related to hair loss from disease)
- Teeth Bleaching