Qualified Medical Expenses Under HSA/HRA

The following is a partial list of medical expenses that, if paid from an HSA/HRA (Health Savings Account / Health Reimbursement Arrangement), may be excluded from gross income under Sections 220(f) or 223(f) of the Internal Revenue Code. Please refer to IRS Publication 502 ("Medical and Dental Expenses") for a more detailed explanation. You can obtain a copy of this publication by calling 1-800-TAX-FORM or logging on to www.irs.gov. This information is not intended a tax and financial advice. You should consult with your tax attorney, accountant, or other qualified professional about your specific situation. Not all these expenses will be covered under your Golden Rule plan; see your policy or certificate for details.
 

• Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners)

• Prescription medicines (those requiring a prescription by a doctor for their use by an individual), and nonprescription medicines, and insulin

• Oxygen equipment and oxygen

• Hospital services fees (lab work, therapy, nursing services, surgery, etc.)

• Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchairs, etc.)

• Expenses of an organ donor

• Meals and lodging provided by a hospital during medical treatment

• Wages for nursing services (see Publication 502)

• Social Security tax for worker-provided medical care (see Publication 926)

• Psychiatric care

• Capital expenses for equipment or improvements to your home needed for medical care (see Publication 502)

• Special school or home for mentally or physically disabled persons (see Publication 502)

• Transportation for needed medical care (see Publication 502)

• Treatment at a drug or alcohol center (includes meals and lodging provided by the center)

• Legal operations to prevent having children or to terminate a pregnancy

• Cost and care of guide dogs or other animals aiding the blind, deaf, and disabled

• Cost of lead-based pain removal (see Publication 502)

NOTE: Health insurance premiums may be allowed by 213(d), but the law limits these to specific circumstances (see below)
 

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Non-qualified Medical Expenses Under HSA/HRA

The following is a partial list of non-qualified medical expenses. Please refer to IRS Publication 502 ("Medical and Dental Expenses") for a more detailed explanation. You can obtain a copy of this publication by calling 1-800-TAX-FORM or logging on to www.irs.gov. This information is not intended as tax and financial advice. You should consult with your tax attorney, accountant, or other qualified professional about your specific situation.
 

• Surgery for purely cosmetic reasons

• Expenses for your general health (even if following your doctor's advice) such as:

  • Health club dues

  • Household help (even if recommended by a doctor)

  • Social activities, such as dancing or swimming lessons

  • Trip for general health improvement

  • Weight loss program

• Diaper service

• Funeral, burial, or cremation expense

• Illegal operation or treatment

• Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc.

• Maternity clothes

• Nursing care for a healthy baby

• Toothpaste, toiletries, cosmetics, etc.

• Most health insurance premiums

  NOTE: Account funds may be used to pay health insurance premiums for:

  1) Qualified long-term care insurance; or

  2) Health insurance while you:

  a. are receiving unemployment compensation

  b. are within any period of continuation coverage required under any federal law, such as COBRA; or

  c. are 65 or older, but not Medicare supplement plans (applies to HSA only).
   

QUICK REFERENCE:

HSA/HRA resources:

Choice Care Card — www.ChoiceCareCard.com