What are qualified medical expenses?

HSAs can be used to pay for many types of medical expenses, even some that are often excluded on health insurance plans. These include:
  • Health insurance plan deductibles, copayments, and coinsurance
  • Prescription and over-the-counter drugs
  • Dental services, including braces, bridges, and crowns
  • Vision care, including glasses and lasik eye surgery
  • Psychiatric and certain psychological treatments
  • Long-term care services
  • Medically-related transportation and lodging

Typically HSAs cannot be used to pay health insurance premiums, although there are exceptions for:
  • Health insurance premiums if you are receiving federal or state unemployment benefits
  • Premiums for COBRA qualified health insurance
  • Certain qualified long-term care insurance premiums
  • Premiums for a health plan (other than a Medicare supplemental policy) for an individual age 65 or older

Note: You must establish an HSA before incurring any expenses or the expenses will not qualify.