Teeth whitening products and procedures.Toiletries such as toothpaste and toothbrushes.Over-the-counter medication with no prescription.
Types of expenses that fall into the non-qualified category include: A 20 percent penalty is assessed for non-qualified expenses. If you use an HSA to pay for expenses that are not qualified, you must pay income tax on those funds. Just a few examples of what qualified expenses include: The IRS determines which expenses are eligible for reimbursement and which are not eligible because health accounts are created by the tax code. What Counts as Qualified Medical Expenses? This makes HDHPs attractive for anyone who wishes to minimize upfront costs that often accompany quality health care. However, your monthly premiums are typically much lower than those plans with lower deductibles.
An HDHP has high deductibles, which is one of its disadvantages. HSA Eligibilityīefore you can be eligible for an HSA, you must first be enrolled in what's known as a High-Deductible Health Plan, also known as an HDHP. Any expenses incurred before your effective date will not be covered or reimbursed. Dependents are eligible as long as they were claimed on an employee's taxes during the time when they received medical services or when expenses were paid.Įxpenses are considered eligible only if they are incurred after the HSA effective date. Guidelines for spouses and dependents of enrollees are the same as for the employee, as long as the enrollee was married to the spouse during the time the spouse received the medical services or when payment was made for medical expenses. Over-the-counter, non-prescription medications are generally not included as qualified medical expenses.
HSA Funds and Their Relation to Insurance Premiums HSA Eligible Expenses: Everything You Need to Know What Counts as Qualified Medical Expenses? 4. HSA Eligible Expenses: Everything You Need to Know 2.
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