Individual/Family Health Insurance Article

Qualified Expenses for an HSA

The great news about having a health savings account is that there are lots of qualified expenses for an HSA. Knowing which procedures and expenses are approved for tax-free withdrawals is important in order to maximize the use and benefit of your HSA account. If you live in California and were to purchase an Anthem Lumenos HSA California Plan this is the overview of coverage and costs.To get an idea of what medical items and services are considered eligible expenses for an HSA, have a look below.  But keep in mind that this an example of what is included, not an exhaustive list.

Qualified Expenses for an HSA:  A Sample List

  * Abdominal supports
  * Abortion
  * Treatment for alcoholism
  * Supports for arches
  * Obstetrician
  * Metabolism tests
  * Costs associated with operating room
  * Optician services
  * Outpatient care lodging
  * Neurologist
  * Legal expenses
  * Lab tests
  * Ambulance fees
  * Acupuncture
  * Artificial limbs
  * Blood transfusions
  * Braces
  * Cardiographs
  * Blood tests
  * Orthopedic shoes
  * Oral surgery
  * Nursing
  * Osteopath
  * Prescription birth control pills
  * Optometrist
  * Removal of lead based paint
  * Transplantation of organs
  * Spinal fluid test
  * Radium therapy
  * Handicapped schools
  * Registered nurse
  * Splints
  * Psychologist
  * Splints
  * Prescription drugs
  * Diathermy
  * Elastic hose
  * Eyeglasses
  * Therapy for drug addiction
  * Diagnostic fees
  * Dentures
  * Dermatologist
  * Crutches
  * Contact lenses
  * Christian science practitioner
  * Sterilization
  * Fluoridation unit
  * Surgeon
  * Therapy equipment
  * UV ray treatment
  * Guide dog
  * Treatment for gums
  * Health care transportation expenses
  * X rays
  * Insulin treatments
  * Wheelchair
  * Hydrotherapy
  * Hearing aids

Again, these are only some of the health care expenses that are covered.  Others can be found by visiting the IRS website.

Click here to see HSA contribution limitations.

How Does an HSA Work?

To take advantage of the flexibility, cost savings and tax advantages of an HSA, the first thing you must do is purchase an HSA-qualified insurance policy called a “high deductible health plan” or HDHP.  The HSA and HDHP must always go together—they were designed by Congress to work as a pair.  The upside of the high deductible part of the HDHP is that it generally makes your monthly premiums cheaper.

Next, when you have your HDHP policy started, you can then set up the actual health savings account at any financial institution that is qualified—usually a bank or investment firm. This is much like opening an IRA. You can choose a standard savings-type account, or can invest in bonds, stocks, or mutual funds if you like.

Once the HSA account is set up, you will receive an HSA debit card and/or checks.  The HSA debit card is often branded with a VISA, Master Card or other such logo, making is easy to use in a variety of payment and purchasing settings.  You can then start to use the HSA debit card on eligible expenses for an HSA.  As long as the expenses are qualified, they remain tax-free. For more information call 800-930-7956 or click here to get an HSA quote.


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