What Can I Use My HSA For?

A Health Savings Account (HSA) is a powerful tool to help manage healthcare expenses while enjoying tax advantages. If you have an HSA, you might be wondering: What can I use it for? Here’s a quick guide to help you maximize its benefits.

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Eligible Medical Expenses

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The IRS allows HSA funds to be used for a wide range of medical, dental, and vision expenses. Some common eligible expenses include:

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• Doctor visits and copays
• Prescription medications
• Dental treatments like fillings or braces
• Eyeglasses, contact lenses, and eye exams
• Mental health counseling
• Medical equipment such as crutches or blood sugar monitors

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For a full list of qualified expenses, you can refer to IRS Publication 502.

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Over-the-Counter (OTC) Medications and Products

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Thanks to the CARES Act, HSA funds can also cover OTC medications without a prescription. This includes items like pain relievers, cold medicine, and even menstrual care products.

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Long-Term Care and COBRA Premiums

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If you're unemployed or transitioning jobs, your HSA can help cover COBRA premiums or long-term care insurance, making it a valuable safety net.

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What’s Not Covered?

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While HSAs are flexible, certain expenses aren’t eligible, such as cosmetic procedures, gym memberships, and non-prescription vitamins (unless prescribed by a doctor). Using HSA funds for non-qualified expenses will incur taxes and a 20% penalty if you're under 65.

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An HSA is a smart way to prepare for both expected and unexpected healthcare costs. By understanding what it covers, you can make informed decisions and stretch your healthcare dollars further.

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The information on this site is for informational purposes only and should not replace direct medical advice, diagnosis, or treatment from your doctor or another qualified healthcare provider.

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Sources:

“Medical and Dental Expenses.” Department of the Treasury Internal Revenue Service.

“IRS outlines changes to health care spending available under CARES Act.” Department of the Treasury Internal Revenue Service.

“Use your HSA as an unemployment safety net.” HSA Store Learning Center.

“Non-qualified HSA withdrawals (with a penalty).” HSA Store Learning Center.