ThinkHSA specializes in providing consumer-driven health care plans to individuals, families, groups and businesses.  The goal is to provide employers a means of controlling health care costs while giving employees and families' ownership, flexibility and more control as they plan for their future health care needs.

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Eligible Medical Expenses

Eligible medical expenses are defined as those expenses paid for care as described in Section 213(d) of the Internal Revenue Code. Additionally, the IRS has allowed some over-the-counter drugs to qualify as eligible medical expenses. ¹

The following lists are to help you determine whether an expense is eligible or not. The lists are provided with the understanding that we are not engaged in rendering tax advice. These lists are to serve as a quick reference. For more detailed information, please refer to IRS Publication 502 or contact a tax professional.

Eligible Medical Expenses (For HSA Distributions)
  • Abdominal supports
  • Abortion
  • Acupuncture
  • Air conditioner (when necessary for relief from difficulty in breathing)
  • Alcoholism treatment
  • Ambulance
  • Anesthetist
  • Arch supports
  • Artificial limbs
  • Autoette (when used for relief of sickness/disability)
  • Birth Control Pills (by prescription)
  • Blood Tests
  • Blood transfusions
  • Braces
  • Cardiographs
  • Chiropractor
  • Christian Science Practitioner
  • Contact Lenses
  • Contraceptive devices (by prescription)
  • Convalescent home (for medical treatment only)
  • Crutches
  • Dental Treatment
  • Dental X-rays
  • Dentures
  • Dermatologist
  • Diagnostic fees
  • Diathermy
  • Drug addiction therapy
  • Drugs (prescription)
  • Elastic hosiery (prescription)
  • Eyeglasses
  • Fees paid to health institute prescribed by a doctor
  • FICA and FUTA tax paid for medical care service
  • Fluoridation unit
  • Guide dog
  • Gum treatment
  • Gynecologist
  • Healing services
  • Hearing aids and batteries
  • Hospital bills
  • Hydrotherapy
  • Insulin treatment
  • Lab tests
  • Lead paint removal
  • Legal fees
  • Lodging (away from home for outpatient care)
  • Metabolism tests
  • Neurologist
  • Nursing (including board and meals)
  • Obstetrician
  • Operating room costs
  • Ophthalmologist
  • Optician
  • Optometrist
  • Oral surgery
  • Organ transplant (including donor's expenses)
  • Orthopedic shoes
  • Orthopedist
  • Osteopath
  • Oxygen and oxygen equipment
  • Pediatrician
  • Physician
  • Physiotherapist
  • Podiatrist
  • Postnatal treatments
  • Practical nurse for medical services
  • Prenatal care
  • Prescription medicines
  • Psychiatrist
  • Psychoanalyst
  • Psychologist
  • Psychotherapy
  • Radium Therapy
  • Registered nurse
  • Special school costs for the handicapped
  • Spinal fluid test
  • Splints
  • Sterilization
  • Surgeon
  • Telephone or TV equipment to assist the hard-of-hearing
  • Therapy equipment
  • Transportation expenses (relative to health care)
  • Ultra-violet ray treatment
  • Vaccines
  • Vasectomy
  • Vitamins (if prescribed)
  • Wheelchair
  • X-rays
Eligible Over-the-Counter Drugs (For HSA Distributions)
  • Antacids
  • Allergy Medications
  • Pain Relievers
  • Cold medicine
  • Anti-diarrhea medicine
  • Cough drops and throat lozenges
  • Sinus medications and nasal sprays
  • Nicotine medications and nasal sprays
  • Pedialyte
  • First aid creams
  • Calamine lotion
  • Wart removal medication
  • Antibiotic ointments
  • Suppositories and creams for hemorrhoids
  • Sleep aids
  • Motion sickness pills
Ineligible Medical Expenses
  • Advancement payment for services to be rendered next year
  • Athletic club membership
  • Automobile insurance premium allocable to medical coverage
  • Boarding school fees
  • Bottled water
  • Commuting expenses of a disabled person
  • Cosmetic surgery and procedures
  • Cosmetics, hygiene products and similar items
  • Funeral, cremation, or burial expenses
  • Health programs offered by resort hotels, health clubs, and gyms
  • Illegal operations and treatments
  • Illegally procured drugs
  • Maternity clothes
  • Non-prescription medication
  • Premiums for life insurance, income protection, disability, loss of limbs, sight or similar benefits
  • Scientology counseling
  • Social activities
  • Special foods and beverages
  • Specially designed car for the handicapped other than an autoette or special equipment
  • Stop-smoking programs
  • Swimming pool
  • Travel for general health improvement
  • Tuition and travel expenses a problem child to a particular school
  • Weight loss programs
Ineligible Over-the-Counter Drugs
  • Toiletries (including toothpaste)
  • Acne treatments
  • Lip balm (including chapstick or carmex)
  • Cosmetics (including face cream and moisturizer)
  • Suntan lotion
  • Medicated shampoos and soaps
  • Vitamins (daily)
  • Fiber supplements
  • Dietary supplements
  • Weight loss drugs for general well being
  • Herbs
Health Insurance may not be purchased with HSA Funds. There are 3 situations which are exceptions whereby HSA funds can be used to pay for:

1) A health plan during any period of continuation coverage required under any Federal law
2) A qualified long-term care insurance contract
3) A health plan during a period in which the individual is receiving unemployment compensation under any Federal or State Law

¹ Revenue Ruling 2003-102, 2003-38 I.R.B. 559


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ThinkHSA is not engaged in rendering legal or tax advice. If these services are required, you should seek the appropriate professionals. JD Associates is currently licensed in Indiana, Michigan and Ohio.

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