A Health Savings Account (HSA) can do more than help employees prepare for future medical bills. It can also pay for a range of qualified expenses, from everyday health needs to specialized care. Understanding what qualifies can help employees make more informed decisions about this tax-advantaged benefit.
Here are five expense categories to explore:
- Qualified medical expenses - HSA funds can help pay for doctor visits, lab tests, prescriptions, eligible medical supplies, dental care, and vision services for employees and their eligible family members.
- Everyday health essentials - Eligible over-the-counter medications, first-aid supplies, menstrual products, allergy treatments, and sunscreen are among the everyday items that may be purchased with HSA funds.
- Fitness and health technology - Fitness trackers, gym memberships, and therapeutic equipment require closer attention to eligibility. General wellness purchases typically do not qualify, and a letter of medical necessity does not automatically make an expense eligible. Employees should confirm the applicable requirements before using HSA funds.
- Specialized care and support - HSA funds may help pay for medically necessary services that support physical and mental health, including counseling, chronic disease management, smoking cessation, and addiction recovery.
- Travel, equipment and supplies - Medical care can involve more than an appointment. Certain transportation expenses related to receiving medical care, durable medical equipment, and ongoing care supplies may also qualify.
Knowing which expenses are eligible can help employees make informed use of their HSA funds while balancing current health needs with future care. Eligibility requirements vary by expense, so checking before making a purchase is an important step. Download the bulletin for more details.