Qualified Medical Expenses

What are Qualified Medical Expenses?

Qualified medical expenses are defined by the IRD. It is you responsibility to determine whether a medical expense is qualified. Using funds from your HSA for non-qualified medical expenses can result in IRS penalties.

This list of qualifying expenses is intended for a brief reference. For more details, reference the IRS Publication 502, “Medical and Dental Expenses” at www.irs.gov/pub/irs-pdf/p502.pdf .

The following qualifying expenses can be paid for with a BASIC HSA.

Qualifying Expenses

Abortion, Acupuncture, Alcoholism, Ambulance, Artificial Limb, Artificial Teeth, Autoette, Bandages, Breast Reconstruction Surgery Birth Control Pills, Braille Books/Magazines, Capital Expenses, Chiropractor Christian Science Practitioner, Contact Lenses, Crutches, Dental Treatment, Diagnostic Devices, Disabled Dependent Care Expenses, Eyeglasses, Eye Surgery, Fertility Enhancements, Guide Dog (or other animal), Health Institute, Hearing Aids, Home Care, Hospital Services, Insulin, Laboratory Fees, Lead Paint Removal, Legal Expenses (authorizing treatment of mental illness), Lifetime Care, Lodging ($50 per night), Medical Conferences (admission and transportation), Medical Services (physician, surgeon, etc), Nursing Home, Nursing Services, Obstetrical, Operations, Optometrists, Orthodontia, Osteopaths, Oxygen and Equipment, Prosthesis, Psychiatric Care Psychologists, Psychotherapists, Special Home for Mentally Retarded, Special Schooling, Sexual Dysfunction Treatment, Sterilization, Stop-Smoking Programs, Surgical Fees Therapy, Transportation (For Medical Care), Weight-loss Programs, Wheelchair, X-Rays

Who is responsible for ensuring that I am only using my HSA for qualified medical expenses?

How you use your HSA is solely between you and the IRS. You will want to save all invoices and statements that will support the withdrawals out of your HSA. You should also consider using your HSA debit MasterCard to pay for qualified medical expenses so that the transaction is detailed on your HSA statements.

What if I do not use my HSA for qualified medical expenses?

f you use your HSA for expenses other than for qualified medical expenses you can subject yourself to IRS penalties. Also, inappropriate use of your HSA may leave you with out the money to pay for your qualified medical expenses should you or your family ever needs it.