What does my HSA cover?

Your Health Savings Account (HSA) Is One of the Most Valuable Benefits You Have

For employees enrolling in a high-deductible health plan, a Health Savings Account (HSA) can be a powerful tool for managing healthcare costs while saving money on taxes. An HSA allows you to set aside pre-tax dollars to pay for qualified medical expenses, reducing your taxable income and helping your healthcare dollars go further.

According to IRS Publication 502, HSA funds can be used for a wide range of eligible healthcare expenses. These include: 

• doctor and specialist visits,
• hospital services,
• prescription medications,
• laboratory tests,
• X-rays,
• and many preventive care services.

HSA dollars can also be used for dental expenses such as: cleanings, fillings, braces, and dentures, as well as vision care expenses including eye exams, prescription glasses, contact lenses, and LASIK surgery.

Many employees are surprised to learn that HSA funds may also cover expenses such as mental health counseling, physical therapy, chiropractic care, certain medical equipment, and ambulance services when medically necessary.

One of the biggest advantages of an HSA is flexibility. Unlike some healthcare spending accounts, unused HSA funds roll over from year to year and remain yours even if you change jobs or retire. This makes an HSA useful not only for current healthcare expenses but also as a long-term savings vehicle for future medical costs. Additionally, contributions, investment earnings, and qualified withdrawals are generally tax-free, creating a unique “triple tax advantage.”

Understanding how to use your HSA can help you save money, prepare for unexpected healthcare needs, and build financial security for the future.

For a full list of covered items, see IRS Publication 502.

IRS Publication 502