Employee Benefits
A health savings account (HSA) is a tax-advantaged account that can help you pay for qualified healthcare expenses, while also reducing your taxable income. You can use an HSA to cover eligible medical, vision, and dental expenses for you, your spouse, and eligible dependents.1
For those with an eligible high-deductible health plan (HDHP), investing in an HSA could be a great way to help pay for current and future medical care. But before committing to an HSA, it’s important to understand what’s a qualified expense and what’s not.
In addition to more common healthcare expenses — like treatments, emergency room visits, and prescription medications — you may be surprised to learn you can also use your HSA for things like sunscreen, breast pumps, and weight-loss programs.2 Read on to learn what you can spend your HSA dollars on.
Here’s an overview of what you can use your HSA for. Be sure to check with your HSA provider or review guidelines set by the Internal Revenue Service (IRS) for more detailed lists.
HSAs can be used for large and small qualified medical expenses. You can use your HSA for ongoing medical services and treatments, like chiropractic care, acupuncture, or physical exams.2 Medical copays, deductibles, and coinsurance can also be covered under an HSA.2
Here are some eligible medical expenses:2
Various dental procedures and services are covered by an HSA. You can use your HSA for routine dental needs, such as cleanings, exams, and X-rays — even dental surgeries, dental veneers, and orthodontics such as braces are eligible for HSA funding.2
Here are some other eligible dental expenses:2
Many vision-related items are HSA-qualified, such as laser/LASIK eye surgery, eye exams, and radial keratotomy.2
Here are some other eligible vision expenses:2
In addition to medical, dental, and vision costs, you can also use your HSA to pay for items and services that may not be as easily defined. For example, did you know hand sanitizer, genetic testing, and holistic healer services may all be HSA-qualified expenses?2
Here are some other eligible expenses you may not be aware of:2,3
Did you know that you can invest your HSA funds? Consider letting your money grow, and then withdrawing it to use on qualifying expenses later in life.
It’s important to know which expenses aren’t eligible under an HSA. Spending HSA funds on ineligible expenses can result in penalties and tax consequences.4
Even if something seems like a medical expense, that doesn’t necessarily mean it’s covered under an HSA. For example, nutritional supplements that aren’t prescribed by your doctor aren’t covered.2 Health club memberships and lactose intolerance medications typically aren’t covered either.2
Here are some examples of non-qualified HSA expenses:2
Health savings accounts can help you save money on items you may already purchase regularly. And if you don’t have a high-deductible health plan — required for an HSA — another option that may work for you is a flexible spending account (FSA).