7 Surprising Ways You Can Use Your HSA for Better Health Benefits

Introduction to The HSA

A Health Savings Account (HSA) is a type of personal savings account you can use to pay for certain healthcare expenses. It gives you more options for how you spend and save money for medical expenses. HSAs are popular for people who don't have easy access to standard healthcare plans and those who don't anticipate frequent medical costs.

Who's Eligible for an HSA?

You are HSA-eligible if you're enrolled in a qualifying high-deductible health plan (HDHP) and are not:

• Enrolled in Medicare
  
• Enrolled in Medicaid (with some exceptions)
  
• Enrolled in a general-purpose Flexible Spending Account (FSA)
  
• Enrolled in Tricare or other comprehensive health coverage
  
• Enrolled in CHAMPVA (Civilian Health and Medical Program of the Department of Veterans Affairs)
  
• Covered by a Health Reimbursement Arrangement (HRA)
  
• Covered by a spouse's general-purpose FSA
  
• Covered by any other non-HDHP health insurance plan
  
• Claimed as a dependent on someone else's income tax return
  
• A recipient of VA health benefits in the past 3 months
  
• A recipient of Indian Health Service (IHS) benefits
  

Note: This is not an exhaustive list; some of these have exceptions. For example, it's not always necessary to choose an FSA or HSA. Some people can have both an FSA and an HSA, provided the FSA account is limited to dental and vision only or uses post-deductible dollars.

How HSAs Help You Save Money

The primary purpose of an HSA is peace of mind. It's a tax-advantaged investment option that helps you do several critical things: save money for medical care, pay less in taxes, and build financial security.

These accounts are designed to help individuals with HDHPs save money that can be used to cover a wide range of healthcare expenses.

Here's a breakdown of why an HSA is so good at what it does:

• Tax-free contributions: Every pre-tax dollar you contribute to your HSA reduces your taxable income with the Internal Revenue Service (IRS).
• Tax-free growth: HSA funds can earn interest or be invested, allowing them to increase tax-free over time.
• Tax-free withdrawals: As long as the funds are withdrawn for qualified medical expenses, you won't pay taxes on the money when you use it.
• Rollover savings: Unused funds in your HSA roll over every year, allowing you to let your money grow long-term.

This triple benefit makes this tax-favored health plan one of the most efficient ways to save money for both short-term and long-term healthcare and wellness costs.

Pro Tip: Even if you or your doctor has confirmed that your HSA covers a medical expense, account holders should always keep receipts and records. This ensures that you're properly reimbursed. Without good records, qualified medical expenses risk being ruled non-medical expenses, which may result in taxes and penalties if you are under the age of 65 when deducted from your health savings account.

Expanded HSA Coverage: Supplements and More

The Root Brands is now approved to let you buy supplements using your HSA funds. Check out our easy 1-2-3 checkout process and learn how we can help support your family's health through tax-free savings.

Whether it's Krill Oil for mental focus and heart health, or Give Me Back My Youth for that glowing skin, our products can be purchased with those leftover FSA and HSA savings.

In honor of this exciting news, here are some other surprising things you can buy with an HSA. Which one surprises you the most?

Medical Expenses

You can use the HSA dollars you save and grow in your account to cover qualified medical care, health services, and other eligible expenses, including copays, deductibles, and coinsurance on things like:

• Doctor visits, ranging from routine office visits to appointments with specialists, plus any necessary lab tests or x-rays
  
• Preventative services such as annual physicals, cancer and skin cancer screenings, vaccinations, and anything else your doctor deems necessary
• Hospital stays, including the care and expenses (think meals and lodging while you're at the hospital)
• Prescription medications and insulin are almost always covered, but you'll likely need to opt for generic options
• Mental health services and appointments with psychologists, psychiatrists, and licensed therapists
• Other licensed healthcare services like chiropractic care, physical therapy, therapeutic massage therapy, and occupational therapy (all of which must be deemed medically necessary by a doctor)
• Medical Equipment such as bandages, blood sugar test kits, crutches, wheelchairs, and diagnostic devices

HSA funds can cover all of this and more. The list of qualified medical expenses, as defined by IRS guidelines, is quite long, so it's always a good idea to check what your plan covers.

Qualified medical expenses typically include costs paid for the diagnosis, treatment, mitigation, cure, or prevention of disease, as well as treatments that affect any part or function of the body.

While the list of qualifying services might surprise you, keep in mind that cosmetic medical expenses, such as hair transplants, cosmetic breast augmentation, face-lifts, and tummy tucks, are not covered by HSA funds.

Dental Expenses

Standard dental care is an HSA-eligible expense. This includes copays, deductibles, and coinsurance on:

• Preventative dental care, like exams, x-rays, routine cleanings, and the dreaded deep cleanings
• Restorative procedures (the stuff we all dread) like fillings, root canals, crowns, dentures, and even veneers
• Orthodontic services such as braces, retainers, and aligners
• Periodontal care and gum health treatment for patients with gum disease
• Oral surgery and tooth extractions that require surgical care

As always, ask your health savings account provider for a complete list of eligible dental services. No matter how much we all dread it, dental care is essential, and it tends to become more expensive when it is ignored.

HSA account holders should take advantage of these qualified expenses to save money on out-of-pocket costs and maintain their oral health through regular cleanings and checkups.

Remember, you'll have to pay out of pocket for cosmetic dental expenses that aren't considered medical necessities, such as teeth whitening and veneers unrelated to restorative procedures.

Vision Expenses

HSA account holders who wear glasses and contacts likely know that vision expenses are covered, but it's easy to forget when you've always had good eyesight. That said, everyone should see an optometrist from time to time!

Here's a look at the many vision-related expenses that qualify for HSA payment:

• Eye exams, routine vision tests, and annual eye screenings
  
• Corrective eyewear, such as glasses, contacts, and many types of prescription eyewear
• Corrective surgeries like laser/LASIK eye surgery (yes, really!), radial keratotomy, and photorefractive keratectomy

Review your health savings account plan for additional eligible vision expenses. Many unexpected vision care costs are covered and considered eligible medical expenses, even for those who don't usually wear glasses.

For example, if your eyes are extra sensitive to UV rays, you've likely accepted that pricey sunglasses are a fact of life. But your HSA might cover prescription sunglasses, sports goggles, and even safety glasses if your doctor confirms your eye sensitivity.

Family Planning and Birth Control

People who don't have traditional health insurance usually expect that the costs of family planning, birth control pills, and other related expenses are going to be out of pocket.

Even many traditional health plans offer limited coverage in this area, so it might surprise some account holders that your HSA funds can be used to pay for costs like:

• Contraceptives such as birth control pills, shots, contraceptive rings, condoms, and IUDs
• Fertility treatments, services, and consultations
• Pregnancy-related expenses that range from pregnancy tests and prenatal vitamins to pregnancy care, and even extend to postpartum care
• Sterilization procedures like vasectomies, vasectomy reversal, and tubal ligation
• Other reproductive health care expenses, such as abortion services in states where it's legal

It's all too easy for HSA account holders to overlook covered fertility-related expenses. Review your provider's list of covered services on your plan. Some plans also cover unexpected costs, like medical travel related to childbirth.

If you're currently pregnant or trying to get pregnant, note that HSA funds do not cover child care expenses. However, you can use a Dependent Care Flexible Spending Account (DCFSA) to pay for child care, daycare, and related expenses for any child under the age of 13.

Weight Loss Programs

Many account holders are unaware of the weight loss programs and services covered by their HSA funds. It's so easy to accept the cost of a gym membership or resign yourself to never meeting with a nutritional specialist, but you don't have to.

Here are some exciting services you can pay for with your HSA funds to take care of your body:

• Weight management programs and many forms of obesity treatment (these generally must be supervised by qualified medical professionals)
• Fitness services, gym memberships, and even sessions with certified personal trainers
• Nutritional support and planning, including dietary supplements and nutritional counseling

In most cases, you'll need to ask your doctor for a Letter of Medical Necessity (LMN) for these services to be eligible on your health savings account. It's a simple process and worth the effort. Once approved, you can use your HSA savings to pay for costs related to your health or weight management journey.

For example, Root Brands offers HSA-eligible products, such as Sculpt and Crush, that utilize patented technology to support healthy weight loss, encourage lean muscle growth, and maintain your body in peak condition.

Over-the-Counter Medications

Did you think medication ended at prescription coverage? You're not alone. This one is easy to overlook and was only recently expanded by the CARES Act.

With how much most of us spend on over-the-counter (OTC) medications every year, though, you can't afford to miss this one! Now you can use your HSA funds to pay for a wide range of OTC medications, including:

• Pain relievers such as acetaminophen, ibuprofen, and aspirin, as well as things like muscle pain creams and heating pads
• Digestive health treatments, including heartburn medications, antacids, laxatives, and even some fiber supplements
• Allergy medications and sinus medications like decongestants and nasal sprays
• Cold and flu: Cough medicine, throat lozenges, cold and flu medications
• Skin care: Sunscreen, medicated skin creams, acne medication
• Qualifying supplements like glucosamine for joint pain may be covered by some plans; if your doctor recommends other vitamins and supplements as necessary for treatment, they might also be covered

The CARES Act expanded the list of eligible OTC medications covered by health savings accounts. Ask your provider for a complete list of OTC medications that count as eligible expenses.

Some OTC personal care products that are considered purely cosmetic (e.g., teeth whitening products) are not covered, but other eligible health costs might surprise you. Many plans now allow you to use HSA funds to pay for items like eyedrops, ice packs, and hand sanitizer!

Menstrual Products and Breast Pumps

This is yet another category that's often underutilized by HSA account holders. The funds in your health savings account can cover the costs of many feminine hygiene products, including:

• Menstrual products: Tampons, pads, menstrual cups, period underwear, panty liners
• Breast pumps and accessories: Manual and electric breast pumps, pumping bras, breast pump accessories
• Breastfeeding supplies: Nursing pads, lanolin, breast milk storage containers, nursing pillows
• Pregnancy essentials: Pregnancy tests, ovulation tests

Check your plan to determine exactly what is covered and avoid paying out of pocket. Some health savings account providers may require you to purchase certain HSA-eligible products from qualifying brands.

Making the Most of Your HSA

An HSA is more than a savings account. It's a tax-advantaged account that allows you to cover healthcare expenses while reducing your taxable income.

Your HSA savings can pay for everything from expected costs like prescription medications to nutritional supplements and weight loss products, including many expenses standard health insurance doesn't cover.

Don't let your health savings account go underutilized! Ask your provider for a comprehensive list of qualified medical expenses to uncover even more unexpected benefits.

There are more ways than ever to make the most of your HSA while you stay healthy and build long-term financial security.