THAT CAN BE PAID FOR FROM ONE’S HSA BANK ACCOUNT

The following list of eligible medical and medically-related expenses is further described in the lastest edition of IRS Publication 502 (download latest publication here), entitled "Medical and Dental Expenses".  It is used to assist taxpayers in itemizing their medical expenses under Schedule A "Itemized Deductions" of the federal 1040 tax return.  Please note, however, that the Pub 502 list does include a few items that are not eligible for payment or reimbursement from your HSA bank account.  For instance, health insurance premiums including MediGap (also referred to as Medicare Supplemental) policies are considered ineligible expenses. There is an exception to this rule when the accountholder is unemployed. One addition to Pub 502 list is prescribed over-the-counter (OTC) remedies and medications. Special rules were issued by the U. S. Department of the Treasury in 2003 and amended in 2010 to allow prescribed over-the-counter remedies and medications (used to treat a medical condition and not for cosmetic or routine hygene purposes) to be paid for or reimbursed from an HSA account. These OTC products must have a written prescription issued by a licensed provider in order to be paid for with HSA funds.

COMMON ELIGIBLE EXPENSES

• Expenses credited toward the calendar-year deductible of an HSA-qualifying, high deductible health plan
• Any co-payments and co-insurance amounts required by your HSA plan after the deductible has been met
• Out-of-pocket medical expenses of other immediate family members even if they not covered by an HSA-qualified medical plan
• Prescribed over-the-counter (OTC) medicines purchased for personal use to treat an injury or illness, not for cosmetic or routine hygene purposes
• Prescription medications and insulin * (including birth control pills/devices and Laetrile for arthritis)
• Certain complimentary medicine/homeopathic services, but not nutritional supplements unless you can only obtain them legally with a physician’s prescription
• Dentist fees for routine/preventive care, extractions, dentures & orthodontics (excluding strictly cosmetic straightening)
• Eye examinations, corrective eye wear (lenses and frames), contacts, saline solution & enzyme cleaner
• Hearing tests and hearing aids as well as batteries used to power a hearing aid
• Special medical equipment, * purchased or rented, for a medical problem (wheelchairs, crutches, etc)

OTHER ELIGIBLE EXPENSES

• Added cost of special adaptations to operate a car or van or to accommodate a wheelchair
• Transportation essential to obtaining medical care such as an ambulance service, parking fees, tolls, actual car expenses, gas and oil only (not general repair, maintenance or insurance costs)
• During periods of unemployment, 1) the premiums to pay for COBRA (continuation of medical insurance) offered through your employer should you lose your job and you are not able to immediately obtain other health insurance, and 2) premiums for an individual health policy so long as you are receiving state unemployment compensation.
• A portion of the premiums for qualified long-term care insurance (nursing home/home health coverage), as set by the IRS each year based on one's age, but NOT premiums for Medi-gap Insurance.
• Smoking cessation programs * but not over-the-counter nicotine patches or gum
• Specialized food and beverages for specific diagnosable medical ailments
• Fees for the following medical and medically-related services:
  • Abortion *
  • Acupuncture
  • Prescribed bandages, topical ointments & skin care
  • Chiropractic services *
  • Prescribed facial soap & preparations to treat acne
  • Fertility enhancement
  • Home care and qualified nursing services *
  • Hospital expenses (in- and out-patient) *
  • Laboratory services and X-rays *
  • Laser eye surgery, if is done primarily to promote correct eye function
  • Obstetrical and midwife services *
  • Oral surgery (other than cosmetic)
  • Ophthalmologist, * optician, optometrist services
  • Osteopathic services *
  • OTC acid reflux medications and antacid tablets prescribed by a licensed provider
  • OTC cough syrup, lozenges & other cold remedies prescribed by a licensed provider 
  • OTC allergy medications, pain relievers, aspirin prescribed by a licensed provider
  • Physician services, including routine physical examinations *
  • Podiatrist services other than cosmetic services
  • Prosthesis or artificial limb expenses *
  • Psychiatrist, psychologist, psychotherapist visits *
  • Removal of lead-based paint in a home with children
  • Special education for physically/mentally for handicapped persons
  • Sterilization and reverse sterilization procedures *
  • Support & corrective devices (including special mattress and board for arthritis)
  • Therapy (physical, occupational, speech) treatments *
  • Weight Loss programs & exercise programs as treatment for physician-diagnosed obesity

* Items may be covered by the medical plan; consult the plan’s certificate for confirmation.