Health spending accounts (HSAs) are funds used for health-related purposes, including routine medical and dental exams, mobility devices, and artificial limbs. Some items, such as sexual counseling and exercise equipment, require a medical professional’s recommendation. Cosmetic procedures are generally not eligible, but laser acne and scar treatment are. HSAs can also cover expenses for disabilities, routine care items, and dental costs, as well as expenses for spouses and dependents.
HSA is a commonly used acronym for health spending accounts, which are funds contributed, saved, and redistributed for health-related purposes, such as diagnosis and treatment of medical conditions. Funds in such an account can be used to reimburse an individual for costs related to disabilities, such as mobility devices and artificial limbs. These funds can be used for routine medical and dental exams. HSA funds can also be used to purchase items such as contact lens cleaners, after-sun skin care products, and birth control.
There are some items that may be considered HSA-eligible expenses if recommended by a medical professional. If a person spends money on those same items or services without a professional recommendation, the HSA cannot be used. These include sexual counseling, breast reduction, and exercise equipment to treat a specific medical condition.
In general, it is clear that cosmetic procedures and items are not HSA eligible expenses. This might cause some people to disqualify costs that they think fall under the category of cosmetics, but actually tend to be reimbursable. For example, laser acne treatment and scar treatment tend to be covered.
There is a wide range of HSA-eligible expenses related to disabilities. Artificial limbs are eligible for reimbursement. Items like hearing aid batteries, phones for the hearing impaired, and the difference in price between a regular book and a Braille book are generally covered. A person with a disability can even use these funds to pay for lessons that teach them how to drive a vehicle specially designed or equipped for their condition.
HSA-eligible expenses go beyond the care and treatment provided by medical professionals. They may also include items that a person can buy for routine care. These may include adult diapers, contact lens solutions, and birth control. These accounts can also be used for expenses that are often controversial, such as abortion procedures and morning-after pills.
HSA-eligible expenses are not limited to medical costs. These funds can also be used for reimbursement of dental costs such as fillings, braces, and cleaning. A person can even use these funds to cover the price of sports injury prevention equipment, such as mouth guards.
Account holder costs aren’t the only ones that are reimbursable. The account holder may also use the funds to cover expenses incurred by their spouse or dependents. In this sense, qualified dependents are usually people who are recognized as dependents for federal income tax purposes.
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