WHAT.EDU.VN answers your questions about Health Savings Accounts (HSAs) insurance. Understanding HSA insurance, including how it works and its numerous advantages, can be confusing. We’re here to help simplify it for you, offering clear explanations and practical insights to help you make informed decisions about your health and finances. Explore the benefits of tax-advantaged savings and learn how an HSA can enhance your healthcare strategy. Unlock financial flexibility with health savings, medical expense accounts, and tax-free healthcare savings.
1. Understanding What Is HSA Insurance
A Health Savings Account (HSA) is a tax-advantaged savings account that can be used for healthcare expenses. It’s paired with a high-deductible health plan (HDHP), offering a unique way to save and pay for medical costs. HSAs are designed to help individuals and families manage healthcare expenses more effectively.
1.1. Key Components of HSA Insurance
- High-Deductible Health Plan (HDHP): An HDHP typically has a higher annual deductible than traditional health plans. This means you pay more out-of-pocket before your insurance coverage starts.
- Tax-Advantaged Savings Account: The HSA itself is a savings account where you can deposit funds that grow tax-free. Contributions, earnings, and withdrawals for qualified medical expenses are all tax-free.
- Eligibility: To be eligible for an HSA, you must be enrolled in an HDHP, not covered by other health insurance (with some exceptions), and not claimed as a dependent on someone else’s tax return.
1.2. Benefits of HSA Insurance
- Tax Advantages: One of the biggest advantages is the tax benefits. Contributions are tax-deductible (or pre-tax if through an employer), earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free.
- Portability: The HSA is yours, even if you change jobs or health plans. The funds remain with you, offering long-term security.
- Investment Opportunities: Many HSAs offer investment options, allowing you to grow your savings over time. This can be particularly beneficial for long-term healthcare needs.
- Triple Tax Advantage: The combination of tax-deductible contributions, tax-free growth, and tax-free withdrawals makes HSAs a powerful savings tool.
- Flexibility: You can use the funds for a wide range of qualified medical expenses, including deductibles, copayments, vision, and dental care.
1.3. How HSA Insurance Works
- Enroll in an HDHP: To start, you need to enroll in a qualified high-deductible health plan.
- Open an HSA: You can open an HSA through a bank, credit union, or other financial institution.
- Contribute Funds: You can contribute funds to your HSA, up to the annual contribution limits set by the IRS.
- Pay for Medical Expenses: When you have qualified medical expenses, you can use the funds in your HSA to pay for them.
- Save and Invest: You can save the funds for future medical expenses or invest them to grow your savings.
1.4. Contribution Limits and Rules
The IRS sets annual contribution limits for HSAs. These limits can change each year, so it’s important to stay informed. For example, in 2023, the contribution limit for individuals was $3,850, and for families, it was $7,750. Those age 55 and older can contribute an additional “catch-up” amount.
1.5. Qualified Medical Expenses
Qualified medical expenses are those that are considered necessary for medical care, as defined by the IRS. This includes a wide range of healthcare costs, such as:
- Doctor’s visits
- Prescription drugs
- Dental care
- Vision care
- Over-the-counter medications (with a prescription, if required)
1.6. Common Misconceptions About HSA Insurance
- Only for the Wealthy: HSAs can benefit individuals and families at various income levels by providing tax advantages and flexibility in managing healthcare costs.
- Use It or Lose It: Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year after year.
- Just for Medical Expenses: While primarily for medical expenses, after age 65, HSA funds can be withdrawn for any purpose, though withdrawals for non-medical expenses will be subject to income tax.
1.7. Who Should Consider HSA Insurance?
HSA insurance can be a good option for:
- Healthy Individuals: Those who don’t anticipate needing a lot of medical care in the near term.
- Long-Term Savers: People who want to save for future healthcare expenses and take advantage of the tax benefits.
- Self-Employed Individuals: HSAs can provide a way to manage healthcare costs and save on taxes.
1.8. How to Choose the Right HSA Plan
- Compare HDHPs: Look at different high-deductible health plans to find one that fits your needs and budget.
- Consider HSA Providers: Research different HSA providers to find one with low fees, good investment options, and excellent customer service.
- Understand the Fees: Be aware of any fees associated with the HSA, such as account maintenance fees or investment fees.
- Review Investment Options: If you plan to invest your HSA funds, look at the available investment options and their historical performance.
- Check Customer Service: Ensure the HSA provider has a good reputation for customer service and support.
1.9. Tips for Maximizing Your HSA Benefits
- Contribute Regularly: Make regular contributions to your HSA to take full advantage of the tax benefits.
- Invest Wisely: If you have a long-term horizon, consider investing your HSA funds to grow your savings.
- Pay with HSA Funds: Use your HSA funds to pay for qualified medical expenses to avoid taxes.
- Keep Records: Keep detailed records of your medical expenses to ensure you can justify your withdrawals if needed.
- Stay Informed: Stay up-to-date on HSA rules and regulations to ensure you are in compliance.
1.10. HSA Insurance vs. Other Healthcare Savings Accounts
| Feature | HSA | HRA | FSA |
|---|---|---|---|
| Ownership | Individual | Employer | Employer |
| Contribution | Individual and employer | Employer only | Employee (pre-tax) and sometimes employer |
| Portability | Yes | No | Generally no |
| Investment | Yes | No | No |
| Tax Benefits | Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free | Employer contributions are tax-deductible, and reimbursements are tax-free | Contributions are pre-tax, and reimbursements are tax-free |
| Eligibility | Must be enrolled in a high-deductible health plan (HDHP) | Determined by employer | Determined by employer |
| Roll-Over Funds | Yes | Determined by employer | Usually no (some plans may allow a small amount to be rolled over) |
| Medical Expenses | Qualified medical expenses as defined by the IRS, including doctor’s visits, prescription drugs, dental, and vision care | Determined by employer, but generally covers a wide range of medical expenses | Qualified medical expenses as defined by the IRS, including doctor’s visits, prescription drugs, dental, and vision care |
| Purpose | To save for future medical expenses, offering a triple tax advantage and investment opportunities | To help employees pay for healthcare expenses, with the employer determining the eligible expenses | To help employees pay for healthcare expenses on a pre-tax basis, typically with a limited amount and a “use it or lose it” rule |
| Best For | Healthy individuals and long-term savers who want to take advantage of tax benefits and investment opportunities, especially those enrolled in an HDHP | Employers who want to provide healthcare benefits to employees without the complexities of insurance | Employees who want to set aside pre-tax money for predictable healthcare expenses, but are aware of the “use it or lose it” rule; often used for predictable expenses like orthodontics or regular prescription refills |
1.11. Real-Life Examples of HSA Insurance in Action
- Scenario 1: Saving for Retirement Healthcare
- John, a 40-year-old, enrolls in an HDHP and opens an HSA. He contributes $300 per month to his HSA and invests the funds. Over the next 25 years, his HSA grows significantly, providing him with a substantial amount to cover healthcare expenses in retirement.
- Scenario 2: Managing Chronic Conditions
- Maria, who has diabetes, uses her HSA to pay for her insulin, doctor’s visits, and diabetic supplies. The tax benefits help her manage the ongoing costs of her condition more affordably.
- Scenario 3: Unexpected Medical Expenses
- David, who is generally healthy, breaks his arm. He uses his HSA to pay for his deductible and other medical expenses related to his injury, avoiding a significant financial burden.
1.12. Staying Compliant with HSA Regulations
- Understand IRS Rules: Familiarize yourself with the IRS rules and regulations governing HSAs.
- Keep Accurate Records: Maintain detailed records of your contributions, withdrawals, and qualified medical expenses.
- Avoid Non-Qualified Withdrawals: Only use HSA funds for qualified medical expenses to avoid taxes and penalties.
- Consult a Tax Advisor: If you have complex financial situations, consult a tax advisor to ensure you are in compliance.
1.13. Future Trends in HSA Insurance
- Increased Adoption: As healthcare costs continue to rise, more individuals and employers may turn to HSAs as a way to manage expenses.
- Expanded Investment Options: HSA providers may offer a wider range of investment options to help account holders grow their savings.
- Integration with Wellness Programs: HSAs may be integrated with wellness programs to incentivize healthy behaviors and reduce healthcare costs.
- Legislative Changes: Changes in healthcare legislation could impact HSA rules and regulations, so it’s important to stay informed.
1.14. Common Questions About HSA Insurance
| Question | Answer |
|---|---|
| What happens to my HSA if I no longer have an HDHP? | You can still use the funds in your HSA for qualified medical expenses, but you can no longer contribute to it. |
| Can I use my HSA to pay for my spouse’s or dependent’s medical expenses? | Yes, as long as they are considered qualified medical expenses. |
| What happens to my HSA when I die? | Your HSA can be passed on to a beneficiary. If the beneficiary is your spouse, it will be treated as their HSA. If the beneficiary is someone else, the account will be subject to income tax. |
| Can I reimburse myself for past medical expenses with my HSA? | Yes, you can reimburse yourself for qualified medical expenses incurred after you established your HSA, even if you paid for them out-of-pocket at the time. |
| Are there any penalties for using HSA funds for non-qualified expenses? | Yes, if you use HSA funds for non-qualified expenses before age 65, you will typically be subject to income tax and a 20% penalty. After age 65, you will only be subject to income tax. |
| How does an HSA affect my taxes? | Contributions are tax-deductible (or pre-tax), earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. This triple tax advantage can significantly reduce your overall tax burden. |
| Can I have both an HSA and an FSA? | Generally, you cannot have both a general-purpose FSA and an HSA at the same time. However, you may be able to have a limited-purpose FSA (for dental and vision expenses) in addition to an HSA. |
| What is the difference between an HSA and a 401(k)? | An HSA is specifically for healthcare expenses and offers a triple tax advantage, while a 401(k) is for retirement savings and offers tax-deferred growth. While both can be used for long-term savings, they have different purposes and tax implications. |
| How do I open an HSA? | You can open an HSA through a bank, credit union, or other financial institution that offers HSA accounts. You will typically need to provide proof of enrollment in a qualified high-deductible health plan. |
| Are HSA contributions subject to Social Security and Medicare taxes? | If you contribute to your HSA through payroll deductions, your contributions are typically not subject to Social Security and Medicare taxes. However, if you contribute directly, your contributions are subject to these taxes. |
1.15. Resources for Learning More About HSA Insurance
- IRS Publications: The IRS provides publications and guidance on HSAs, including Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.
- HSA Providers: Many HSA providers offer educational resources and tools to help you understand and manage your account.
- Financial Advisors: A financial advisor can help you assess your financial situation and determine if an HSA is right for you.
- Healthcare.gov: This website provides information on health insurance options, including high-deductible health plans.
1.16. Taking Control of Your Healthcare Savings with HSA Insurance
Understanding What Is Hsa Insurance and how it works can empower you to take control of your healthcare savings and make informed decisions about your health and finances. By leveraging the tax advantages and flexibility of HSAs, you can save for future medical expenses, manage current healthcare costs more effectively, and build long-term financial security.
Don’t let healthcare costs overwhelm you. Explore the potential of HSA insurance and discover how it can benefit you and your family.
Do you have more questions about HSA insurance or other financial topics? Visit WHAT.EDU.VN to ask your questions and receive expert answers. We are here to help you navigate the complexities of healthcare and finance with ease. Our services are always free, so don’t hesitate to reach out to us.
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2. Detailed List of Covered and Not Covered Items Under HSA Insurance
Navigating the specifics of what is covered and not covered under HSA insurance can be complex. This comprehensive list provides an alphabetical breakdown of frequently encountered items to help you understand what expenses are eligible for reimbursement.
2.1. A – D
Abortion – Medical expenses associated with a legal abortion are reimbursable.
Acid controllers – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Acne laser treatment – Expenses paid for acne treatment are covered.
Acne medications – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Acupuncture – Medical expenses paid for acupuncture are reimbursable.
Adoption – The cost of the adoption itself is not covered, however things like physicals for the adoptive parents, pre-adoption counseling, and other health related expenses may be covered.
Adult diapers – Expenses paid for diapers are reimbursable.
After-sun gel/lotions with aloe – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. Expenses for medicated gels and lotions to treat effects of sun exposure are covered.
Age Management Systems (Cenegenics) – This is a comprehensive, evidence-based approach to age management and includes a set of diagnostics establishing a hormonal, metabolic and physical baseline. This is considered general well-being and would not be covered (unless prescribed by a physician to treat a medical condition).
Airplane air contaminant protection – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. Expenses paid for over-the-counter medications to prevent the spread of airborne contaminants while flying are reimbursable.
Alcoholism and drug abuse – Medical expenses paid to a treatment center for alcohol or drug abuse are reimbursable. This includes meals and lodging provided by the center during treatment.
Allergy and sinus – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Alternative providers – Expenses paid to alternative providers for homeopathic or holistic treatments or procedures are generally not covered unless to treat a specific medical condition. Naturopathic procedures or treatments using natural agents such as air, water or sunshine are generally not reimbursable. Member’s explanation of necessity required.
Ambulance – Medical expenses paid for ambulance service are reimbursable.
Antibiotic products, non-prescribed – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Anti-itch and insect bite – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Annual medical contract fees – Annual medical contract fees for exclusive provider care are not eligible.
Artificial limb – Medical expenses paid for an artificial limb are reimbursable.
Artificial teeth – See Medical aids.
Attendant – See Nursing services.
Automobile – See Car.
Back brace – Expenses paid for a back brace are reimbursable when submitted with a member’s explanation of necessity.
Batteries – Expenses paid for the purchase of batteries are reimbursable when they are used for the sole purpose of an item that is also covered. This would include, but not be limited to, batteries for blood pressure machines, wheelchairs, heart defibrillators, etc. Request for reimbursement should include a description of the item the batteries are purchased for.
Benefit maximum – Expenses denied by medical insurance as benefit maximum(s) have been exhausted are reimbursable.
Birth control pills and devices – Medical expenses paid for birth control pills, injections and devices are reimbursable.
Birthing tub – The cost of rental or purchase is reimbursable.
Blood pressure monitor – Expenses paid for the purchase of the monitor are reimbursable.
Blue light blocking glasses – Expenses paid for blue light blocking glasses are covered.
Braille books and magazines – The amount by which the cost of Braille books and magazines for use by a visually impaired person exceeds the price for regular books and magazines is reimbursable.
Breast augmentation – Expenses related to breast augmentation (such as implants or injections) are not reimbursable because the procedure is cosmetic in nature. However, medical costs related to the removal of breast implants that are defective or are causing a medical problem are reimbursable.
Breast feeding – Pump, Shields, Gel Pads, Nursing Bras, and lactation supplies are reimbursable.
Breast reduction – Medical expenses related to breast reduction surgery are reimbursable only with a physician’s diagnosis letter explaining that the procedure is medically required and not for cosmetic purposes (that is, to prevent or treat an illness or disease).
Breathing strips – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Capital expenses – If their main purpose is medical care, capital expenses paid for special equipment installed in a participant’s home or for improvements to the home are reimbursable.
Car – Medical expenses are reimbursable for special hand controls and other special equipment installed in a car for the use of a person with disabilities. Also, the amount by which the cost of a car specially designed to hold a wheelchair exceeds the cost of a regular car is a reimbursable medical expense. However, the cost of operating a specially-equipped car is not reimbursable. See Transportation.
CBD/Hemp Oil – Covered with a medical diagnosis.
Chair – The cost of a reclining chair is reimbursable with a medical diagnosis.
Child care – See Dependent day care expenses.
Childbirth classes – Expenses for childbirth classes are reimbursable, but are limited to expenses incurred by the mother-to-be. Expenses incurred by a “coach”– even if that is the father-to-be are not reimbursable (if they are billed separately). To qualify as medical care, the classes must address specific medical issues, such as labor, delivery procedures, breathing techniques, and nursing. Newborn classes are not eligible.
Chiropractor – Expenses paid to a chiropractor for medical care are reimbursable.
Christian Science practitioners – Medical expenses paid to Christian Science practitioners are reimbursable.
Clinic – Medical expenses for treatment at a health clinic are reimbursable.
Clothing – The cost of clothing – even if prescribed – that substitutes for normal clothing is not deductible. However, prescribed special clothing purchased to alleviate or treat an illness or disease is reimbursable only to the extent that the cost is greater than the cost of the item(s) commonly available.
COBRA premiums – COBRA premiums that you pay for yourself or your eligible dependents are not reimbursable under a Health FSA. However, COBRA premiums are reimbursable under an HSA, and may be reimbursable under an HRA. Your employer determines which health care expenses are eligible under an HRA. To determine if a specific expense is paid by your HRA, please refer to your coverage plan.
Coinsurance amounts – Medical coinsurance amounts and deductibles are reimbursable.
Colon cleanse – Covered with a medical diagnosis.
Composite fillings – Fillings are covered.
Compound medications – Medications produced by medical professionals to treat a medical condition are reimbursable.
Conference – Amounts paid by an individual for admission and transportation expenses to a medical conference relating to the chronic disease of the individual or individual’s eligible dependent are deductible if the costs are primarily for and essential to the medical care of the chronic disease. The cost of meals and lodging while attending the conference are not deductible as medical expenses. The claim submission must include the diagnosis.
Contact lenses – See Vision care.
Copies of medical records or radiographs – Payments required to have medical records or radiographs duplicated are reimbursable.
Corn pads – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Cosmetic procedures – Medical expenses for cosmetic procedures are reimbursable only if the procedure is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. However, medical expenses paid for other cosmetic procedures are not deductible medical expenses under Code Section 213(d), and thus are not reimbursable. This applies to any procedure that is directed at improving the patient’s appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. For example, face lifts, hair transplants, hair removal (electrolysis), liposuction, teeth bleaching and dental veneers are generally not deductible. If there is a concern that a medical or dental procedure could be considered cosmetic, a medical diagnosis is required.
Cough, cold and flu medicines – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
CPAP (Sleep Apnea) machine supplies are covered.
CPR classes – Expenses paid for CPR classes as part of birthing classes are reimbursable, otherwise a physician’s diagnosis letter for the family member is required.
Crutches – Medical expenses paid to buy or rent crutches are reimbursable.
Cushions/Pillows – The cost of cushions/pillows, including inflatable, are not covered (unless submitted with a medical diagnosis).
Dancing lessons, swimming lessons, etc. – Dancing, swimming lessons, etc., are not reimbursable, even if they are recommended by a doctor.
Day-after pill – Expenses paid for the purchase of pills to eliminate pregnancy risk are reimbursable.
Day care – See Dependent day care expenses.
Deductibles – Medical insurance deductibles and coinsurance amounts under the employer’s plan are reimbursable.
Dental Enamel Micro-Abrasion – This is also known as dental bleaching. Service is covered with a medical diagnosis.
Dental treatment – Medical expenses for dental treatment are reimbursable. This includes fees paid to dentists for X-rays, models and molds, fillings, braces, extractions, dentures, dental implants and the difference in cost from insurance-approved restorations and alternative materials, etc. Veneers are covered only when medically necessary, but are not covered for purely cosmetic reasons. See Cosmetic procedures.
Dependent day care expenses – Dependent day care expenses are not reimbursable under a Health FSA, HRA or HSA, but may be reimbursable under a dependent care FSA.
Diabetic education – Diabetic education and nutritional counseling are eligible.
Diaper service – Payments for diapers or diaper services are not reimbursable unless they are needed to relieve the effects of a particular disease.
Diets – See Special foods.
Disability – See Braille books and magazines; Capital Expenses; Car; Guide dog or other animal; Learning disability; Mentally disabled special home for; Personal use items; Schools, Special; Television; Therapy; Transportation; and Wheelchair.
Donor egg extraction – Procedural expenses paid for the process of donor egg extraction to treat infertility are reimbursable.
Doula – Expenses paid for a doula whose primary purpose is for delivery of the infant are reimbursable. Charges where the primary purpose is child care after delivery are not covered. An explanation of the primary purpose should accompany the claim.
Driving Lessons – Driving lessons are not eligible.
Drugs – See Medicines.
Drug addiction – See Alcoholism and drug abuse.
Dry cast, protectors – Expenses paid for the purchase of dry casts and bandage protectors are reimbursable.
2.2. E – L
Ear molds – Expenses paid for the purchase of ear molds are reimbursable.
Ear piercing – Expenses for ear piercing are not reimbursable.
Ear wax removal – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications. – Expenses paid for the purchase of ear wax removal kits are reimbursable.
Electric toothbrush – Expenses paid for the purchase of electric toothbrushes are reimbursable when submitted with a medical diagnosis. Electric toothbrush replacement brushes are not reimbursable.
Electrolysis or hair removal – See Cosmetic surgery.
Embryo storage – Expenses paid for embryo storage are reimbursable. Medical diagnosis is required.
Employment-related expenses – Employment-related expenses such as employment physicals are not reimbursable. (Note, however, that physical exams that are not employment-related are reimbursable.) See Physical exams.
Employment taxes – See Nursing services.
Essential oils – Covered with a medical diagnosis.
Exercise equipment – The cost of exercise equipment for general well-being is not reimbursable unless submitted with a medical diagnosis.
Eye drops – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Eyeglasses – See Vision care.
Facial cleansers, toners, moisturizers – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Facial tissues, antiviral – Not eligible.
Fee for credit card payment – Fee is eligible when the provider or dependent care provider bills a fee for paying with a credit card.
Finance charges – Finance charges are not eligible.
Fitness programs – Fitness programs for general health are not reimbursable unless submitted with a medical diagnosis.
Fluoride, prescribed – Expenses paid for fluoride toothpaste or rinses prescribed to treat a specific medical condition are covered. Medical diagnosis is required.
Fluoride – Topical application of fluoride applied by a provider is eligible.
Food – See Special foods.
Forms Completion – Charges incurred by the member for provider completion of required forms (i.e. disability form) is covered.
Funeral expenses – Expenses for funerals are not reimbursable.
Gauze and/or Gauze Bandages – Purchase of these items are covered.
Genesis – Expenses paid for genesis are reimbursable with a medical diagnosis.
Genetic testing – Expenses paid for genetic testing are eligible.
Gift cards – Gift cards can be used to purchase items and the receipts for those items can then be submitted for reimbursement.
Gloves, latex – Expenses paid for latex gloves are reimbursable.
Glucose meters – Covered.
Glycerin Shakes – Service is only covered when submitted with a medical diagnosis.
Group medical insurance – See Insurance premiums.
Guardianship fees – Fees associated with establishing guardianship for an incapacitated individual are reimbursable.
Guide dog or other animal:
- Guide dog – The cost of a guide dog or other animal used by the visually impaired or hearing impaired is reimbursable. Costs associated with a dog or other animal trained to assist persons with other physical disabilities are also reimbursable, as are amounts paid for the care of these specially-trained animals.
- Service animals – Covered if animal is primarily for medical care to alleviate a mental defect or illness and would not have been paid but for that defect or illness; also expenses incurred to maintain the animal’s health and vitality so it may perform its duties.
Hair loss treatments/Rogaine® – Reimbursable when prescribed by a physician for a specific medical condition, but not for cosmetic purposes (that is, to stimulate hair growth). Medical diagnosis is required.
Hair Transplant – Service is only covered when submitted with a medical diagnosis.
Hand sanitizer – Expenses paid for hand sanitizers are reimbursable.
Health club dues – Health club dues, YMCA® dues, or amounts paid for steam baths for general health or to relieve physical or mental discomfort not related to a particular medical condition are not reimbursable.
Hearing aids – Medical expenses for a hearing aid, repairs and batteries are reimbursable.
Heart defibrillator – Expenses paid for heart defibrillators are reimbursable.
Heartburn medicines – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. Covered to alleviate or treat injuries or sickness, see Over-the-counter medications.
Herbs – The cost of herbs taken for general well-being are not reimbursable. However, the cost of herbs taken to alleviate a specific medical condition are reimbursable. Medical diagnosis is required.
Holistic treatments – See Alternative providers.
Home urine test kit – Expenses paid for home urine test kits are reimbursable. See Kits.
Homeopathic treatments – See Alternative providers.
Hormone replacement therapy – Hormone replacement therapy (hormone pellets) are covered with a medical diagnosis.
Hospital – Expenses incurred as a hospital in-patient or out-patient for laboratory, surgical and diagnostic services qualify as medical expenses.
Hot pads, creams, and patches – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Hot tub – See Capital expenses.
Household help – The cost of household help, even if recommended by a doctor, is prohibited. However, certain expenses paid to an attendant providing nursing-type services are reimbursable. See Nursing services.
Human guide – Expenses for a human guide – to take a blind child to school, for example – are reimbursable. See Guide dog or other animal.
Humidifiers/Air purifiers – Humidifiers and air purifiers are eligible.
Hypnobirthing Classes – This is a childbirth method that focuses on preparing parents for gentle birth including techniques of deep relaxation, visualization, and self-hypnosis and is covered.
Hypnotherapy – Expenses paid for hypnotherapy are reimbursable when prescribed by a physician as therapy to treat a medical condition. Medical diagnosis is required.
Immigration Immunizations – Vaccinations required to immigrate are covered.
Implanon – Birth control injections are covered.
Impotence or sexual inadequacy – Medical expenses related to the treatment of impotence are reimbursable. Medical diagnosis is required.
Indigestion medicines – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Infant formula – The cost of infant formula is not covered, even if the mother was not capable of breast feeding.
Infertility – Medical expenses related to the treatment of infertility are reimbursable. Eligible expenses may include egg storage, egg donor costs, infertility monitors, in-vitro fertilization, and sperm washing. Surrogate costs associated with a qualified dependent of the taxpayer are reimbursable and may include such things as blood compatibility testing and psychological exams. If the surrogate mother is not a qualified dependent of the taxpayer, the costs that the surrogate mother incurs are not reimbursable. Storage costs associated with the freezing of blood cords, embryos, placentas and sperm (sperm banks) are generally reimbursable when a specific medical condition exists. Additionally, these costs are reimbursable only for a limited period until they can be used to treat the existing condition (generally up to one year). Medical diagnosis is required. Pre-seed moisturizer is not reimbursable.
Insect repellent – Effective January 1, 2020, a doctor’s prescription for reimbursement is no longer needed. See Over-the-counter medications.
Insoles – Expenses paid for insoles are reimbursable. Medical diagnosis required.
Insulin – The cost of insulin is reimbursable.
Insurance premiums – Premiums for any health plan are not reimbursable under a Health Care FSA. Under an HRA and HSA, the following premiums are reimbursable: long-term care insurance, Medicare Part A or B, Medicare HMO and employer-sponsored retiree health insurance premiums, and premiums for a health plan during a period in which an individual is receiving retirement compensation.
Interest – Interest incurred because payment to a health care provider is delinquent is not covered.
Invisible Braces – Orthodontic braces that are manufactured to be nearly invisible are covered.
2.3. M – O
Maintenance costs – Portion of expense incurred to maintain equipment used to treat a medical condition are reimbursable. For example, the cost of electricity to operate an air purifier when suffering from asthma. Member’s explanation of necessity required.
Marijuana – Marijuana, even if prescribed by a doctor, is not reimbursable.
Marriage counseling – Expenses for marriage counseling services do not qualify
