HSA Examples of Eligible Expenses
Navigating the complexities of healthcare costs can be a daunting task, but understanding how your Health Savings Account (HSA) can work for you can ease some of that burden. ThinkTank Insurance Partners is here to guide you through the myriad of medical expenses that your HSA can reimburse, empowering you to make informed decisions for your health and well-being. From essential qualified medical expenses to COBRA premiums, and even personal protective equipment like masks and sanitizers, your HSA offers a versatile solution for managing healthcare costs. This article delves into the IRS regulations around eligible expenses and offers a comprehensive list to help you maximize the benefits of your HSA. Whether you're dealing with ongoing medical conditions or preparing for unexpected health events, knowledge is your best asset. Read on to become an informed HSA user and take control of your healthcare journey.
Your company's health savings account (HSA) may reimburse:
Distributions made from an HSA to reimburse the account beneficiary for eligible expenses are excluded from gross income.
The Internal Revenue Service (IRS) defines qualified medical care expenses as amounts paid for the diagnosis, cure or treatment of a disease, and for treatments affecting any part or function of the body. The expenses must be primarily to alleviate a physical or mental defect or illness.
The products and services listed below are examples of medical expenses eligible for payment under your HSA, when such services are not covered by your high-deductible health plan. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.
This list is not all-inclusive; additional expenses may qualify, and the items listed below are subject to change in accordance with IRS regulations. For more information or clarification on individual list items, refer to Publication 502 or consult a tax professional.
Plans that do not allow reimbursement of all eligible medical expenses as defined by the IRS and Department of Treasury must customize this article prior to use.
* For purposes of reimbursement of qualified long-term care premiums from an HSA, reimbursement in excess of the amount which may be deducted on an individual's personal tax return is not an eligible expense. IRS 213(d)(10) establishes the tax deduction allowed for qualified long-term care premiums on individual tax returns. If the HSA reimburses long-terms care premiums for an amount greater than set forth in IRC 213(d)(10), the amount greater than allowed is included in the account holder's taxable income and is subject to a 20 percent penalty.
This Know Your Benefits article is provided by ThinkTank Insurance Partners and is to be used for informational purposes only and is not intended to replace the advice of an insurance professional.
Marty has spent most of the last 20 years developing software in the marketing space and creating pathways for software systems to talk to each other with high efficiency. He heads our digital marketing efforts as well as oversees any technology implementations for our clients. As a partner, Marty is also responsible for internal systems in which help our team communicates with each other and our clients.