Here is a high-level summary of eligible HSA expenses:
This list provides a general overview of eligible HSA expenses. It's important to consult IRS guidelines and/or your HSA provider for specific details and any updates regarding eligible expenses.
Understanding Letter of Medical Necessity (LMN)
There are some services, treatments and products that require a Letter of Medical Necessity (LMN) in order to be deemed Health Savings Account eligible. The letter is a document provided by a healthcare provider that outlines the medical need for a specific treatment, service, or product. This letter is often required for expenses that may be considered outside the norm or not explicitly listed as eligible by the IRS.
For example, if you plan to use your HSA funds to purchase a specific type of medical equipment, an over-the-counter medication, or participate in a weight-loss program, your healthcare provider may need to write a Letter of Medical Necessity to explain why this expense is necessary for your health. This letter can help establish that the expense qualifies as a medical expense under IRS guidelines, making it eligible for reimbursement from your HSA.
It's important to note that not all expenses require a Letter of Medical Necessity, and the necessity of such a letter can vary based on IRS regulations. If you have questions about whether a specific expense requires a Letter of Medical Necessity, it's best to consult with your healthcare provider and HSA administrator.
Ineligibleexpenses (Things you CAN'T use HSA Dollars for)
Some common ineligible services, products or treatments include:
1. Cosmetic Surgeries or Treatment
2. Household Cleaning or Sanitation Products
3. Toiletries, including toilet paper, deodorants, toothpaste, shampoo & conditioner
4. Health Club Membership Dues
5. Late Payment or Canceled Appointment Charges
6. Daycare Expenses
7. Aromatherapy
8. Couples or Marriage Counseling
9. Baby Bottles, Cups, Oil & Wipes
10. Health Insurance Premiums, except for COBRA coverage, Medicare premiums & qualified long-term care insurance
Overall, understanding what expenses are HSA eligible is essential for making the most of your HSA benefits. By using your HSA funds for eligible expenses, you can avoid paying taxes on that money, saving you money in the long run. Ensure that you use your funds in a way that is compliant with IRS regulations, to avoid taxes and penalties.