An HSA allows you to pay for qualified medical expenses with tax-free dollars.1 From over-the-counter medications to doctor visits and dental care, thousands of products and services are eligible for HSA spending.
How to use your HSA funds effectively
Your HSA is a powerful financial tool designed to help you save on healthcare costs. Contributions come out of your paycheck before taxes, and the money grows tax-free.2 When you spend it on qualified expenses, you don’t pay federal income tax on that money, either.1
Unlike a Flexible Spending Account (FSA), your HSA funds never expire. However, knowing what you can buy now helps you stretch your household budget further. (Note: You can view the latest IRS contribution limits at this page.)
17 Surprising HSA Qualified Medical Expenses
Here are 17 ways to put your HSA dollars to work for you and your family.
1. Over-the-counter (OTC) medications
Yes, you can use your HSA for most over-the-counter drugs. This is one of the most popular ways to utilize funds. You can buy essentials like cough suppressants, pain relievers (like ibuprofen or acetaminophen), sleep aids, and allergy relief medicine without a prescription.
2. Doctor visits
Your HSA covers co-pays and bills for office visits. Until you hit your insurance deductible, out-of-pocket costs can be high. Your HSA is designed to bridge that gap, paying for consults, check-ups, and sick visits.
3. Telemedicine visits
Virtual healthcare appointments are generally qualified medical expenses. If the virtual meeting replaces an in-person consult for a medical issue, you can typically use your HSA card to pay for the session.
4. Healthcare insurance premiums
While you generally cannot pay standard monthly premiums with an HSA, there are specific safety-net exceptions. You can use HSA funds to pay for:
- COBRA premiums
- Health care coverage while receiving unemployment compensation
- Medicare premiums (Part A, B, C, and D) if you are 65 or older.
5. Women’s healthcare products
You can use HSA dollars for menstrual products, including tampons, pads, liners, and cups. Birth control pills, contraceptives and Hormone Replacement Therapy (HRT) are also qualified medical expenses with a prescription.
6. Dental care
HSA funds cover most out-of-pocket dental costs. This includes routine cleanings, fillings, root canals, and even orthodontia (braces) for you or your children.
Tip: Check if your employer offers a Limited Purpose FSA (LPFSA). You can use LPFSA pre-tax dollars for dental and vision first, allowing your HSA funds to stay invested and growing for the future. Read more in this article.
7. Vision care
Eye exams, prescription glasses, and contact lenses are all qualified expenses. You can also use your funds for prescription sunglasses or contact lens solution.
8. Weight loss management
Weight loss medications, including oral and injectable GLP-1s, are qualified medical expenses with a prescription. You can pay for your clinician visits and your GLP-1 medications with an HSA.3
9. Retirement expenses
Once you turn 65, your HSA acts like a traditional 401(k) for non-medical spending. You can withdraw funds for any purpose — even a new boat — and simply pay ordinary income tax on the distribution. However, if you use the money for qualified medical expenses in retirement, it remains 100% tax-free.4
10. Lead-based paint removal
Removal of lead-based paint is eligible if a child in the home has or has had lead poisoning. You will typically need a Letter of Medical Necessity from your provider to validate this expense.
11. Vasectomy
Family planning procedures are qualified medical expenses. Your HSA covers the costs associated with a vasectomy, and it can even pay to reverse a previous vasectomy procedure.
12. Smoking cessation
Quitting smoking is a great investment in your health, and your HSA can help. The cost of participation in a stop-smoking program and prescribed drugs to alleviate nicotine withdrawal are eligible expenses.
13. Hearing aids
Hearing loss treatments are qualified medical expenses. You can use your HSA to defray the cost of hearing aids, batteries, and exams.
14. Eczema cream and lotion
Specialized skincare for medical conditions is eligible. If you suffer from dry winter skin or eczema, you can buy creams and lotions specifically formulated and marketed for eczema treatment.
15. Gear for nursing moms
Breastfeeding supplies are qualified medical expenses. You can save money on breast pumps, breast pump supplies, lactation pads, and storage bottles.
16. First-aid supplies
Preparedness items are eligible for purchase. You can stock your home and car with first-aid kits, including bandages, rubbing alcohol, and thermometers.
17. Transportation for healthcare
If you must travel for medical treatment, certain transportation costs may be eligible. This can include bus, taxi, train, or plane fares, and ambulance services. The rules here are complex, so we recommend consulting a tax advisor before booking travel.
Frequently Asked Questions
Q: Do HSA funds expire at the end of the year?
A: No, HSA funds do not expire. Unlike an FSA, your HSA balance rolls over year after year, allowing you to save for future healthcare costs or retirement.
Q: Can I use my HSA for my spouse or children?
A: Yes, you can use your HSA funds to pay for qualified medical expenses for your spouse and any claimed dependents, even if they are not covered by your high-deductible health plan.
Q: How do I find out if a specific item qualifies?
A: Visit our Qualified Medical Expenses page to search an alphabetical index of expenses and discover new opportunities to save. You can also visit the HSA Store to search for thousands of HSA-qualified products and pay with your HSA card. Always save your receipts for your records and for submitting any reimbursement claims to your HSA.
Have questions? Visit our Help Center.
Ready to shop? Visit the HSA Store and other retailers like Amazon.
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.
2Investments available to HSA holders are subject to risk, including the possible loss of the principal invested and are not FDIC insured or guaranteed by HealthEquity, Inc.
3HSA-qualified medical expenses must meet IRS requirements. Eligibility may vary based on your personal situation. HealthEquity does not provide medical care, diagnosis, or prescriptions. Always consult your licensed healthcare provider regarding your treatment options.
4If you withdraw funds from your HSA in retirement for non-qualified medical expenses you must pay income tax, but there is no tax penalty after the age of 65.
5HealthEquity, Amazon, and the FSA Store are separate companies and are not responsible for each other’s policies or services. When you make a purchase of eligible expenses through Amazon or the FSA Store from a link or code from HealthEquity, we may earn a referral commission.
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