Health Saving Accounts - Health Savings Accounts Eligible Expenses
213(d) Eligible Expenses
The following is a summary of medical expenses that are eligible for HSA reimbursement. For more information, please refer to IRS publication 502. You can order a copy of publication 502 by calling 1-800-TAX-FORM (1-800-829-3676).
Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners)
Prescription medicines (those requiring a prescription by a doctor for their use by an individual) and insulin Oxygen equipment and oxygen Hospital services fees (lab work, therapy, nursing services, surgery, etc.)
Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchairs, etc.)
Expenses of an organ donor
Meals and lodging provided by a hospital during medical treatment
Wages for nursing services
(see Publication 502)
Social Security tax for worker-provided medical
care (see Publication 926)
Psychiatric care at a specially equipped medical center (includes meals and lodging)
Capital expenses for equipment or improvements to your home needed for medical care (see Publication 502)
Special school or home for mentally or physically disabled persons (see Publication 502)
Transportation for needed medical care (see Publication 502)
Treatment at a drug or alcohol center (includes meals and lodging provided by the center)
Legal operation to prevent having children
Cost and care of guide dogs or other animals aiding the blind, deaf, and disabled
Cost of lead-based paint removal (see Publication 502)
NOTE: Health insurance premium may be allowed by 213(d), but the HSA law limits these to specific circumstances (see below).
213(d) Ineligible Expenses
The following is a summary of medical expenses that are not eligible for HSA reimbursement. For more information, please refer to IRS publication 502. You can order a copy of publication 502 by calling 1-800-TAX-FORM (1-800-829-3676).
Surgery for purely cosmetic reasons.
Expenses for your general health (even if following your doctor’s advice) such as:
- Health club dues
- Household help (even if recommended by a doctor)
- Social activities, such as dancing or swimming lessons
- Stop smoking programs
- Trip for general health improvement
- Weight loss program
Funeral, burial, or cremation expense
Illegal operation or treatment
Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc.
Medical insurance included in a care insurance policy
Medicine you buy without a prescription
Nursing care for a healthy baby
Toothpaste, toiletries, cosmetics, etc.
Most health insurance premiums
NOTE: HSA funds may be used to pay health insurance premiums for:
1) Qualified long-term care insurance; or
2) Health insurance while you:
(a) are receiving unemployment compensation;
(b) are entitled to federal or state health
continuation, such as COBRA.
Advanced payment for services rendered next year
Baby-Sitting -- ChildCare
The IRS link here is a great resource for further information into the tax status and workings of the qualified HSA account. We are also compiling a list of helpful resources here at our FAQ's sheet.