Eligible Medical Expenses

You can pay for a wide range of eligible medical expenses with your HSA, including many that are not covered by your health plan. Eligible medical expenses are any expenses you incur for healthcare services, medical equipment or prescribed medications including:

  • Health plan deductibles and co-insurance
  • Dental care
  • Vision care
  • Prescription medications
  • Over-the-counter medications prescribed by your doctor
  • Certain medical equipment

Please Note

  • Funds used to pay for eligible medical expenses are always tax-free, regardless of age or health plan coverage.
  • Prior to age 65, funds used to pay for non-eligible medical expenses are subject to normal income tax rates and incur a penalty. After age 65, HSA funds may be withdrawn for non-eligible expenses with no penalty (regular income tax rates still apply).
  • HSA funds can be used to reimburse yourself for past medical expenses if the expense was incurred after your HSA was established.
  • If you have questions regarding the eligibility of medical expenses, contact a qualified tax advisor or the IRS.

Insurance Exceptions

Insurance premiums are generally not considered eligible medical expenses; however, four exceptions apply:

  1. Premiums for continuation coverage under COBRA or ERISA for the accountholder, spouse or dependents
  2. A qualified long-term care insurance contract
  3. A health plan maintained while the accountholder, spouse or dependent is receiving unemployment compensations under any Federal or State Law
  4. Premiums for those over the age of 65, including Medicare or retirement health benefits provided by a former employer

Important Links

  • Click here for a complete list of eligible medical expenses.
  • Download a quick reference list of eligible medical expenses.
Learn about eligible medical expenses.
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