An HSA, or Health Savings Account, is a specific type of personal savings accounts individuals typically have access to through their workplace’s insurance plans. It’s a savings type that allows you to set tax-free money aside to use as you need it to cover medical and health-related expenses like deductibles, copayments, coinsurance, and much more.
HSAs typically have a limited lifespan and expire at the end of each term with no savings rollover options, so if you want to take full advantage of your HSA and not lose any of the money you’ve set aside, you’ll need to plan ahead and know what your eligible expenditure options are. Let’s take a closer look at just what benefits and purchases you can make with your leftover HSA finances and a few of the medical expenses that are not covered.
Items Eligible for Coverage
There is a wide range of covered medical and health-related expenses that you can use your extra HSA money to cover before it expires. Some items on this list may include quick drugstore purchases that can be made last-minute while others may require a bit more planning to fit in before the end of your HSA term.
Costs associated with legal abortion procedures are covered and reimbursable.
Acne Laser Treatment and Medications
Both of these items are covered, and effective in January of 2020, doctor’s prescriptions are no longer required for acne medications to be reimbursable.
Adoption-Related Medical Expenses
While adoptions are not covered, your HSA can help offset any medical costs associated with it including pre-adoption counseling, physicals for parents, and more.
After sun gels and lotions with aloe along with other products designed to treat sun exposure are eligible for HSA coverage, even without a doctor’s note.
Alcoholism and Drug Abuse Treatments
Any medical expenses associated with treatment for alcohol or drug abuse–including funds used for meals and lodging provided by the center you are treated at– are eligible for HSA reimbursement.
Artificial Limbs and Teeth
Limb and teeth replacements are eligible for reimbursement coverage.
You can receive coverage for back braces with your HSA, but only if you make sure to submit an explanation of its necessity to your provider.
If you require batteries to operate any of your covered medical equipment like wheelchairs, blood pressure machines, or heart defibrillators, those batteries can be paid for with your HSA.
Pumps, shields, gel pads, nursing bras, and many other breastfeeding supplies are covered as medical expenses under HSA policies.
These courses are covered for expecting mothers, but not for any other individuals, including the child’s father-to-be. Additionally, classes may only qualify if they address specific medical issues, so newborn classes are not covered.
If a medical diagnosis recommends you purchase an electric toothbrush, that expense is reimbursable. However, replacement brushes and brush heads are not covered.
Lasik Eye Surgery
Among other vision-correcting surgeries, LASIK eye surgery is a covered, reimbursable expense that is deductible under IRS Section 213(d).
Several different types of medical aids including false teeth, hearing aids, orthopedic shoes, and crutches can be reimbursed.
Other Covered Items
Other covered items include adult diapers, over-the-counter allergy, and sinus relief medications, ambulance services, birth control pills, blue light glasses, chiropractor appointments, cold and flu medicine, facial cleansers, latex gloves, hand sanitizer, heartburn medicines, humidifiers, air purifiers, insect repellent, insulin, a medicated shampoo, shower chairs, thermometers, and x-rays.
Items Ineligible for Coverage
While there are many different HSA-covered healthcare expenses, there are also a few uncovered medical expenses that may surprise you. Let’s look at a few unexpected items that you can’t purchase with your leftover HSA funds.
Age Management Systems
Cenegenics, or age management systems, are a collection of comprehensive diagnostics that help individuals establish hormonal, metabolic, and physically healthy baselines. They aren’t covered because they usually fall under general well-being expenses unless a doctor prescribes them.
Because this procedure is cosmetic, getting breast implants or injections is not covered. However, if you need a defective implant removed, that would be covered. Similarly, breast reduction surgeries that are cosmetic are not covered unless they are medically required. It’s important to note, however, that in many cases, breast reconstruction surgery following cancer treatment is often covered. Always ask your doctor for more information if this is your case.
Like breast augmentation coverage, other cosmetic procedures are also ineligible for coverage unless they are medically required. These include face lifts, hair transplants, hair removal, liposuction, teeth bleaching, and dental veneers.
Dancing and Swimming Lessons
Sometimes, dancing and swimming lessons will be recommended by doctors to patients as a way to help increase mobility or other functions. However, even with a recommendation, these lessons are not reimbursable.
Unless you have a specific medical diagnosis that requires the equipment, so typically they are not eligible for coverage.
Any household help expenses are ineligible for coverage and are usually prohibited unless it’s in the rare care of a prescribed attendant providing nursing-type services.
Even if the mother cannot breastfeed, infant formulas are not covered.
Beckham Insurance Group Has You Covered
Having money left over at the end of the year on an HSA isn’t a terrible problem to have! But we hope we helped you find some creative ways to spend your hard-earned money on HSA-eligible expenses.
Remember, if you’re looking to upgrade your policy for the upcoming year, contact our team at Beckham Insurance Group. Every day we hear from business owners and HR Directors about the challenges they encounter while trying to administer the employee benefits program at their company or organization. We’re here to help. Contact us today for more information and a free quote!