Health Savings Accounts
Eligible Medical Expenses
There are hundreds of qualified medical expenses, including dental visits, orthodontics, glasses, certain long-term care insurance premiums, COBRA coverage, medical insurance premiums while receiving federal or state unemployment compensation, and post age-65 premiums for coverage other than Medigap or Medicare supplemental plans. In addition, HSA funds may be used to pay your Medicare Part A and B premiums and for employer-sponsored retiree plans.
Examples of qualified medical expenses include out-of-pocket expenses for:
- Medical deductibles
- Dental care
- Prescription drugs
- Vision care
- LASIK surgery
- Hearing aids
- Certain health premiums (COBRA, LTC, Medicare A/B/C/D)
Amounts paid for over-the-counter drugs are no longer qualified medical expenses eligible for reimbursement from your HSA, unless the over-the-counter drug was prescribed by a doctor. The prescription requirement only applies to over-the-counter drugs. It does not apply to expenses for over-the-counter items such as insulin and diabetic supplies, bandages, band-aids or contact lens supplies. These items continue to be reimbursable from an HSA without a doctor's prescription.
Expenses generally can be for yourself, your spouse, or your dependent children. Your spouse and tax-qualified dependents do not need to be covered by the same health plan.
It's your responsibility to determine whether an expense is a Qualified Medical Expense eligible for tax-free reimbursement.
To view a complete list of qualified medical expenses, see IRS publication 502.