Health Savings Accounts allow you to set up a 100% tax-deductible HSA account to pay for many types of out of pocket medical expenses. These include many types of qualified expenses that are often not covered by most insurance policies.
Since the passage of the CARES Act in March 2020, you can use your HSA funds to buy over-the-counter medications without a prescription. However, weight-loss programs, vitamins and supplements, may be eligible for reimbursement only with a medical necessity letter from your health care provider. Prior to the passage of the act, these items were only eligible for reimbursement with a prescription. The tax penalties for non-qualified withdraws increased to 20%.
Below is a partial list of Qualified Expenses for HSA’s updated for 2025*
- Acne medications – OTC
- Acupuncture
- Alcohol & Drug Treatment Programs
- Allergy medications – OTC
- Alternative
Medicines – as per IRS rulings
- Autoette or wheelchair
- Birth Control pills and Condoms
- Braces
- Breast pumps
- Breast reconstruction surgery after cancer (not breast augmentation)
- Capital expenditures – Home modifications for
handicapped. Primary purpose must be medical care
- Car equipped to accommodate wheelchair and/or
handicapped controls
- Childbirth preparation classes (mother)
- Chiropractors
- Christian Science treatment
- COBRA health care continuation premiums
- Cold & flu medications – OTC
- Contact lenses replacement insurance
- Crutches
- Deaf persons – Hearing aid and batteries,
Hearing aid animal and care, Lip reading expenses, Special education,
modified telephone
- Dental fees
- Dentures
- Diagnostic fees
- Digestive care medications – OTC
- Direct Primary Care, starting 01/01/2026 up to $150 per month for individuals or $300 per month for 2+ people on qualifying policy.
- Doctor’s fees
- Domestic aid – rendered by nurse
- Drug addiction recovery
- Drugs (prescription)
- Dyslexia language training
- Employee share of premiums for employer sponsored health insurance
- Erectile Dysfunction medications
- Eyeglasses, contacts and exam fees
- First Aid Kits
- Feminine hygiene products
- Fluoride device (on advice of dentist)
- Halfway house (adjustment to mental hospital)
- Healing services fees
- Health insurance premiums while receiving unemployment benefits
- Hospital care
- Laboratory fees
- Lead paint removal
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- Lasik Eye Surgery
- Lifetime medical care (Prepaid; retirement
home)
- Limbs (artificial)
- Long term care premiums that qualify
- Mattress (prescribed for alleviation of
arthritis)
- Medicare Part A or B premiums
- Medicare Part C (Medicare Advantage) premiums
- Medicare Part D premiums
- Membership fees (association furnishing
medical services, hospitalization, and clinical care)
- 2003-38 I.R.B.559
- Nursing home (medical reasons)
- Nursing services (board and Social Security
paid by taxpayers)
- Obstetrical expenses
- Operations (legal)
- Optometrists
- Orthodontia
- Orthopedic shoes (excess costs
- Osteopaths
- Over the counter drugs and medicines (including cold, allergy, etc)
- Oxygen/oxygen equipment
- Pregnancy expenses – most
- Prosthesis
- Prescription Medications
- Psychiatric care
- Psychologists
- Psychotherapists
- Remedial reading
- Retarded person’s costs for special home
- Schools (special, relief, or handicapped)
- Sexual dysfunction treatment
- Sunscreen (SPF 15+) – OTC
- Surgical fees
- Swimming pool (treatment of polio or
arthritis)
- Teeth (artificial)
- Therapy treatments (prescribed by a physician)
- Transportation (essentially and primarily for
medical care)
- Vitamins (prescription)
- Weight-Loss Programs
- Wheelchair or autoette
- X-rays
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What expenses are not eligible for FSA or HSA reimbursement?
HSAs can be used for many medical expenses, but not all health-related purchases qualify. In general, expenses must be used to diagnose, treat, prevent, or manage a medical condition. Costs that are primarily for general wellness or personal use are usually not eligible.
Common ineligible expenses include:
- Medicare Supplement (aka Medigap) premiums
- General fitness costs such as gym memberships, fitness classes, or exercise equipment, unless prescribed for a specific medical condition
- Vitamins and supplements, unless required to treat a diagnosed condition and supported by a letter of medical necessity
- Non-prescription eyewear, including sunglasses without a prescription
- Everyday personal hygiene items like toothpaste, deodorant, soap, and shampoo
Eligibility rules can vary, so it’s always a good idea to confirm with your plan administrator or tax advisor.
Health Savings Accounts are the biggest advancement in health care financing in years is available to anyone in Colorado with our HSA qualifying medical plans! Call Colorado Health Insurance Brokers at 800-416-4481 for more information and a free quote or Get a free instant HSA quote.
MORE HSA RESOURCES >>
HSA OVERVIEW
HSA HIGH DEDUCTIBLE HEALTH PLANS
HSA BANKING OPTIONS
HSA – ALTERNATIVE MEDICINE
HSA QUESTIONS AND ANSWERS
GET A QUOTE ON AN HSA QUALIFIED HEALTH PLAN
* See the current IRS Regulations for a list of qualifying medical expenses. You may also reference the most current IRS Publication 969 and the IRS HSA Questions and Answers bulletin and www.irs.gov for more information on HSA’s and IRS rulings and www.ustreas.gov for Treasury Department rulings. Federal and state regulations are subject to change. Colorado Health Insurance Brokers are not engaged in rendering tax, investment or legal advice. If tax, investment or legal advice is required, seek the services of a licensed professional.
