Health Savings Account - Qualified Expenses

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What Things Qualify As 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:

Sample 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