(NewsNation) — A health savings account, or HSA, lets those with a high-deductible health plan set pre-tax money aside to pay for medical expenses, from Band-Aids and Tylenol to doctor office visits.
Contributions are made with pre-tax dollars. HSAs have an investment option, so earnings grow tax-free if you invest. They are an option for those with health insurance plans through a workplace or the government Marketplace.
The tax-free savings plans help decrease the amount you pay out-of-pocket for some health care costs, such as doctor visit copays, deductibles and some prescription drugs.
Here’s what you can and can’t pay for with an HSA.
What can I pay for with my HSA?
The expense must be considered “qualified,” Qualified medical expenses range from dental to vision to family planning.
- Dental: Cleanings, flouride treatments, braces
- Vision: Eyeglasses, contact lens solution, laser eye surgery
- Medical: Chiropractic treatments, crutches, back braces, doctor visits, x-rays, insulin
- Behavioral health: Psychiatric care, psychologist, drug addiction
- Family planning: Abortion, birth control pills, pregnancy tests, fertility treatments
Office visit copays and deductibles are usually considered qualified medical expenses.
Healthcare-related travel and some insurance premiums may also qualify. Some lesser-known qualified expenses include cosmetic surgery if deemed for medical purposes, learning disabilities, lead-based paint removal, lactation and guide dogs.
This is not an exhaustive list. Consult with your insurance provider first to confirm whether the cost is eligible to be covered by funds in an HSA.
What cannot be paid for with an HSA?
Most expenses related to preventing or treating an illness or disease are covered, but some things may not be. For example, nutritional supplements and weight loss programs not prescribed by a physician would not qualify.
