Health savings accounts (HSAs) are a popular tax-advantaged way for Americans with high-deductible health plans (HDHPs) to save and pay for healthcare...
Health savings accounts (HSAs) are a popular tax-advantaged way for Americans with high-deductible health plans (HDHPs) to save and pay for healthcare expenses. While many people are familiar with using their HSA funds for common medical costs like doctor visits and prescription medications, there are actually a wide range of surprising items that can be considered HSA-eligible expenses and help you avoid unneeded healthcare costs.
Accessibility Products
In addition to the more common eligible expenses, HSA and flexible spending account (FSA) funds can also be used to cover the cost of various accessibility products and home modifications. This includes items like:
- Speechify’s text to speech app and other specialized computer equipment and software
- Wheelchairs, walkers, and other mobility aids
- Braille books and magazines
- Guide dogs and other service animals
- Ramps, grab bars, and other home modifications to improve accessibility
- Hearing aids, cochlear implants, and other assistive devices
Skincare, Sunscreen, and More
One unexpected HSA-eligible expense is sunscreen. The IRS considers sunscreen with SPF 15 or higher to be a qualified medical expense, as it helps prevent sun damage and skin cancer. Other skincare items like moisturizers, lotion, lip balm, and anti-itch creams can also be reimbursed through your HSA if they are used to treat a specific medical condition.
Women’s Health
Thanks to the CARES Act, menstrual products like tampons, pads, and menstrual cups are now considered qualified medical expenses that can be paid for with HSA or flexible spending account (FSA) funds. Birth control is another common use case for HSA spending. This helps make these essential healthcare items more accessible and affordable.
Products for Parents
New parents can use their HSA funds to cover the cost of breast pumps and related supplies. Family planning expenses, pregnancy tests, and baby monitors are other common products that can be purchased with most HSAs to avoid out-of-pocket expenses.
Over-the-counter Medications
Many over-the-counter (OTC) medications and supplements can be reimbursed through your HSA, including pain relievers, allergy medicines, antacids, and more. You may need a prescription or letter of medical necessity from your doctor for some OTC items to qualify.
Vision and Dental Expenses
HSA funds can be used to pay for a wide range of vision and dental expenses, such as prescription eyeglasses, contact lenses, eye drops, dental cleanings, braces, and even some cosmetic procedures if they are medically necessary.
Other Well-being Products
Other unexpected HSA-eligible expenses include smoking cessation programs, weight-loss programs (with a letter of medical necessity), and first-aid supplies.
Always Consult with your Plan & IRS Guidelines
When making decisions related to how to use your HSA account, please note that it’s always important to consult the rules set forth by the Internal Revenue Service (IRS) and your plan administrator for specific guidance tailored to your individual situation, as rules and regulations governing HSAs and FSAs can vary. The best way to confirm contribution limits, copays, premiums, health insurance costs, reimbursem*nts and medical care expenses related to pre-tax dollars and post-tax dollars is to get in touch with your plan provider.
FAQs
What is an FSA or HSA?
An FSA (Flexible Spending Account) and an HSA (Health Savings Account) are tax-advantaged accounts that allow individuals to set aside pre-tax money to pay for qualified medical expenses. Individuals typical open FSAs and access FSA funds via their employer. HSAs can be access via an employer or a specific HSA provider.
What Expenses Are Not HSA Eligible?
Expenses that are not considered qualified medical expenses for HSA purposes include cosmetic procedures, gym memberships, and over-the-counter medications without a prescription.
How are HSA funds eligible?
HSA funds can be used to pay for a wide range of eligible medical expenses, including doctor visits, prescription medications, dental care, vision care, and certain over-the-counter items. The funds are tax-free when used for qualified expenses.
What Are HSA Eligible Expenses?
HSA-eligible expenses include things like prescription drugs, doctor visits, hospital stays, dental care, vision care, and certain over-the-counter medications and supplies. The IRS maintains a comprehensive list of qualified medical expenses that can be paid for with HSA funds.
What Qualifies As An HSA Eligible Expense?
Qualified HSA expenses include things like prescription medications, doctor visits, hospital stays, dental care, vision care, and certain over-the-counter items like sunscreen, menstrual products, breast pumps, and first-aid supplies. The IRS has specific guidelines on what qualifies.
What are some FSA-eligible items at Target?
Target's FSA & HSA shop offers a wide range of eligible items including skin care, eye care, first aid kits, over-the-counter medicines, baby care products, and more.
What are some surprising items you can purchase with an HSA?
Some surprising HSA-eligible items include sunscreen, menstrual products, breast pumps, over-the-counter medications, vision and dental care, smoking cessation programs, weight-loss programs, acupuncture, and even some modifications for accessibility, including Speechify’s text to speech app. Website like the HSA Store are also a great place to look to learn more about what is versus isn’t available for purchase with your HSA.
