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Health Savings Account (HSA)

What is an HSA?

Who is eligible?

What can I use it for?

Where can I use it?

What is a health savings account?

A type of savings account that lets you set aside money, on a pre-tax basis, to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your out-of-pocket health care costs.

HSA funds generally may not be used to pay premiums. HSAs work together with an HSA-eligible health plan. If you’re enrolled in this type of health plan, you can make pre-tax contributions to an HSA, allowing you to pay for qualified medical expenses tax-free. This can help create a cash cushion to offset the higher deductibles that HSA-eligible health plans typically have.

If you don’t need the money in your HSA for immediate medical expenses, you can save and invest it until you do.

Yes! You won’t get a tax deduction on what your employer contributes, but you will be able to continue to add to your HSA fund.

Yes! An HSA is “portable.”

Banks, credit unions, and other financial institutions offer HSAs.

You may contribute to an HSA only if you have an HSA-eligible plan (sometimes called a High Deductible Health Plan (HDHP)) — generally, a health plan that only covers preventive services before the deductible. This means you will be responsible for paying for urgent care, specialist and primary care out of pocket.

Who is eligible?

Not everyone is eligible to contribute to an HSA. You can contribute to an HSA if:

  • You aren’t enrolled in a health plan sponsored by your spouse or parent that is not an HSA-eligible health plan;
  • You cannot be covered by any other type of health plan, including Medicare Part A or Medicare Part B; 
  • You cannot be claimed as a dependent on another person’s tax return (unless it’s your spouse); and, 
  • For indipop plans, you must have 1099 status or an EIN.

What can I use it for?

You can use HSA funds to pay for deductibles, copayments, coinsurance, and other qualified medical expenses.

Tip: Save Your Receipts

Common IRS-Qualified Medical Expenses

Sourced from the IRS and HSA Bank

  • Acupuncture
  • Ambulance
  • Artificial Limbs
  • Artificial teeth*
  • COVID-19 diagnostic testing and treatment
  • Crutches
  • Dental treatments (including X-rays, cleanings, fillings, sealants, braces and tooth removals*)
  • Doctor’s office visits and co-pays
  • Drug prescriptions
  • Fluoride treatments*
  • Feminine hygiene products
  • Fertility enhancement (including in-vitro fertilization)
  • Flu shots
  • Guide dogs
  • Hearing aids and batteries
  • Infertility treatment
  • Birth control treatment
  • Blood sugar test kits for diabetics
  • Inpatient treatment at a therapeutic center for alcoholism or drug addiction
  • Insulin
  • Laboratory fees
  • Laser eye surgery*
  • Artificial teeth*
  • Medical alert bracelet
  • Medical records charges
  • Midwife
  • Occlusal guards to prevent teeth grinding
  • Orthodontics*
  • Orthotic Inserts (custom or off the shelf)
  • Over-the-counter medicines and drugs (see more information below)
  • Personal protective equipment (PPE) like masks and hand sanitizer
  • Breast pumps and lactation supplies
  • Chiropractor
  • Contact lenses and solutions*
  • Physical therapy
  • Psychiatric care
  • Psychoanalysis
  • Psychologist
  • Special education expenses that include tutoring for a child with learning disabilities caused by mental impairments (recommended by doctor)
  • Speech therapy
  • Stop-smoking programs (including nicotine gum or patches, if prescribed)
  • Surgery, excluding cosmetic surgery
  • Vaccines
  • Vasectomy
  • Vision exam*
  • Walker, cane
  • Wheelchair

Services That May Be Eligible with a Letter of Medical Necessity Completed

This list is not all-inclusive:

  • Weight-loss program only if it is a treatment for a specific disease diagnosed by a physician (e.g., obesity, hypertension, heart disease)
  • Compression hosiery/socks, anti-embolism socks or hose
  • Massage treatment for a specific ailment or diagnosis
  • CPR classes for adult or child
  • Improvements or special equipment added to a home or other capital expenditures for a physically handicapped person

Where can I use it? Here is a partial list!

  • Target
  • Walmart
  • Walgreens
  • CVS
  • Sephora
  • Warby Parker

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