This page is intended to be an educational reference only. Keep in mind this is not an exhaustive list, and I will frequently check product manufacturer websites for eligibility statuses, as they often will have done their own due diligence if they suspect people may want to use their HSA or FSA to pay for their products and they fall into the uncertain category. In those cases I do my best to research the expense further and come up with an answer that seems most likely for the greatest number of providers.Īt any rate, these are the primary sources I use for expense verification. There are also cases where one source says an expense is eligible and another says it's not. If you can't get one, the safe choice is to assume it's not eligible and not expense it. In a case like that, I would suggest getting a definitive answer in writing from your provider. His response was that he did and even they didn't know! I did extensive research and the answer pointed toward "probably not but check with your provider to see if they'll cover it." So I suggested that he consult them for guidance. To help illustrate this point, I had a visitor email me to ask if regenerative medicine such as platelet rich plasma (PRP) and stem cell treatments are HSA eligible. The IRS only provides a partial list of eligible expenses, so consumers and even insurance companies are left to wonder exactly what products are eligible. You can no longer contribute to an HSA once you're enrolled in Medicare.Ĭoming up with accurate eligibility status for the list of HSA eligible expenses can be a challenge at times.Funds can be withdrawn at any time for any reason, but funds withdrawn for non-approved medical expenses before the age of 65 are subject to income taxes and an additional penalty.That is, funds are contributed pre-tax, can be withdrawn for eligible medical expenses without taxation, and if you invest the funds within your HSA the earnings or interest are tax free. Funds in a health savings account can be invested in a similar way as other retirement accounts and are a rare example of an account that's triple tax advantaged.You can find current and historical HSA contribution limits on this site. Contributions to an HSA can be made by an employer and/or employee on a pre-tax basis.This list includes products like allergy medication, pain relievers, prenatal vitamins, and tampons. As part of the 2020 CARES Act, over-the-counter medications and menstrual care products are now eligible for purchase with health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs). HSAs are only available as part of a high-deductible health insurance plan (HDHP).The MMA was the largest overhaul to Medicare in the program's history. Health savings accounts (HSAs) were created as part of the Medicare Prescription Drug, Improvement, and Modernization Act, or MMA, signed into law by President George W.You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Blue Cross and Blue Shield of New Mexico does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. * Health Savings Accounts (HSA) have tax and legal ramifications. Learn the difference between an HSA and an FSA (Flexible Spending Account). No "Use It or Lose It": Your HSA funds roll over annually, regardless of the amount.Portability: You take your HSA account with you, even if you change jobs or health plans.Tax-free withdrawals: As long as you are paying for a qualified medical expense, withdrawals from your HSA are tax-free.Pre-tax contributions *: If you are eligible for an HSA, you and your employer can make tax-free contributions (up to the annual limit) to your HSA.
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