Health savings accounts can help cover qualified emergency, dental, vision, and family medical expenses as well as over-the-counter purchases. There are hundreds of eligible expenses members can use their HSA pretax dollars for.
Qualified expenses include:
- Copays for medical expenses and drugs
- Coinsurance and deductibles determined by your health plan
- Doctor and hospital visits, including surgeries
- Chiropractor and podiatrist visits
- Prescription drugs
- Birth control and sterilization
- X-rays and lab tests
- Vaccinations and immunizations
- OTC (over-the-counter) items (see details about OTC items below)
- Vision expenses such as glasses or contact lenses
- Dental and orthodontia expenses
- Hearing tests, hearing aids, and other hearing loss expenses
- Long-term hospital or nursing care
- Treatment for alcoholism or drug abuse
- Quitting tobacco therapy
- Wheelchairs, artificial limbs
- COBRA and Medicare plan premiums (and, if you are unemployed, other types of health insurance premiums)
Qualified over-the-counter (OTC) medicines and items
Many over-the-counter medications and health related supplies are eligible for HSA reimbursement. With the passage of the CARES Act, as of January 1, 2020, over-the-counter medications no longer require a doctor's prescription to be considered a qualified medical expense.
Common OTC HSA-eligible medicines
- Acid controllers
- Allergy and sinus medications
- Antibiotic products
- Anti-diarrheals
- Anti-gas products
- Anti-itch/insect bite products
- Anti-parasitic treatments
- Baby rash ointments/creams
- Cold sore remedies
- Cough, cold and flu remedies
- Digestive aids
- Feminine anti-fungal/itch drugs
- Hemorrhoid treatments
- Insulin
- Laxatives
- Motion sickness products
- Pain relief products
- Respiratory treatments
- Sleep aids and sedatives
- Stomach remedies
OTC items are also eligible and include:
- First Aid supplies like Band-Aids, elastic bandages/wraps
- Condoms
- Walking aids such as braces/supports, walkers, canes and/or crutches
- Catheters
- Contact lens supplies/solutions
- Denture adhesives
- Diagnostic tests/monitors
- Ostomy products
- Reading glasses
- Wheelchairs
Example expenses that do not typically qualify for HSA reimbursement
- Cosmetic surgery, plastic surgery
- Funeral expenses
- General well-being items
- Health club dues
- Personal hygiene items
- Toiletries
- Tooth whitening
The IRS provides two helpful publications that are updated every year. IRS Publication 502 lists eligible healthcare expenses that qualify for tax-free reimbursement. IRS Publication 969 provides helpful guidance in understanding how to most effectively and compliantly use your HSA.
We wrote the book on HSAs
We offer members a digital copy of our HSA Guide, complete with a list of terms to know, information on HSA eligibility, tips on how to manage your HSA and advice about how you can best spend your HSA dollars. The guide is a quick and easy reference to help you understand the basics or brush up on your HSA knowledge – at home or on-the-go.