A health savings account (HSA) is an excellent way to plan for the future and take care of unexpected medical expenses. There's no doubt that medical procedures and prescription drugs are qualified expenses. But some products are a little less clear.
So what is eligible for HSA reimbursement, and do feminine products fall under that umbrella? Read on to find out!
What is Eligible for HSA Reimbursement?
The whole point of an HSA is to have money set aside for medical expenses. To contribute to an HSA, you must have a high deductible health plan (HDHP) and can't be dependent on someone else's insurance. Think of it as a tradeoff for your HDHP.
An HDHP has lower premiums but higher deductibles, so many will use their HSA funds to cover those costs. You can also use the HSA for other qualifying expenses. That includes prescription drugs, surgical procedures, hospital visits, and more.
Even dental treatments and eyeglasses are eligible for reimbursement.
It's essential to stick to qualifying expenses when using your HSA. Any withdrawals you make are subject to taxes. If you're under 65, you may also have to pay a 20 percent penalty. If you would like to know - what is eligible for HSA reimbursement? Visit this website.
What About Feminine Care Products?
Here's the million-dollar question that women have. Feminine products like pads and tampons are not cheap. They're an ongoing expense that can quickly add up.
For a while, feminine products weren't eligible for HSA reimbursement. Luckily, that changed in 2020. The CARES Act reclassified many feminine products, grouping them into the same category as other "medical care" products.
Now, women can get reimbursement for buying tampons, pads, menstrual cups, and more. Incontinence products and over-the-counter drug products became part of that list, too!
Using Your HSA
Your HSA is there to protect you when medical expenses arise. Most experts recommend saving the funds in your HSA for unexpected costs. The longer you let the HSA grow, the bigger your account gets. But you'll be happy to know that feminine care products are eligible for reimbursement if you ever need to use your HSA to buy them.
Read a similar article about who can open a health savings account here at this page.
