A child at a doctors office receiving a hearing aid

What does an HSA cover?

Jan 21, 2021

Empower Insights

A quick guide to the out-of-pocket expenses your health savings account can cover

If you have a high-deductible health plan, you can use a health savings account (HSA) to set aside money to pay for some medical expenses tax-free.¹But not every kind of medical expense is reimbursable. In 2021, research from Empower Retirement and Personal Capital found that 83% of respondents want to worry less about money in 2021. Knowing how you can spend your HSA funds may help.²

Here are some examples of what’s covered:

Medical treatments	Acupuncture Chiropractic care Fertility treatments In-home nursing services Necessary surgery (including necessary reconstructive surgery) Osteopathic care Qualified long-term care services
Medical imaging and tests	MRI CT scan X-ray Lab tests
Prescribed medicines	Prescription drugs Prescribed over-the-counter drugs Insulin
Medical supplies	Bandages Permanent modifications to your home Special equipment installed in your car Crutches Wheelchair Lactation supplies Hearing aids Oxygen Pregnancy test kit Artificial limbs Service animal
Vision care	Eye exams Eyeglasses Contact lenses Contact lens solution Eye surgery
Dental care	Dental exams Fillings Braces Dentures
Mental health care	Psychiatric care Psychoanalysis Psychologist fees
Special education expenses	Tutoring and schooling in: Overcoming learning disabilities Learning Braille Learning lip reading Remedial language training
Addiction treatment	Doctor-recommended inpatient treatment for alcoholism and drug addiction Programs to quit smoking
Certain health insurance premiums	Long-term care insurance Healthcare continuation coverage Health coverage while on unemployment Medicare A and B if you are age 65 or older

What an HSA doesn’t cover

And here are some common expenses that an HSA specifically does not cover:

Controlled substances, even if legalized in your state
Funeral expenses
General household help
Nutritional supplements
Teeth whitening
Unnecessary cosmetic surgery

HSA dollars can also be saved year over year for retirement, and these savings can really add up.

Learn how one recent grad uses his HSA to save

Learn More

1 Contributions, any earnings and withdrawals are federal income tax-free if used to pay for qualified medical expenses. State income taxes may still apply. HSA funds used for nonqualified medical expenses may be subject to applicable federal and state income taxes and/or penalties.

2 Empower Retirement and Personal Capital, “Post-2020 Financial Mindsets” research in conjunction with Harris Poll, November 25, 2020, to December 11, 2020, among 2,008 respondents.