Non HSA Qualified Expenses

Non HSA Qualified Expenses are expense items that cannot be taken as a tax deduction. A common list of them are seen in the table below.

On the other hand, a health savings account deduction is an allowable tax-deductible medical expense or HSA eligible expense. These include expenses incurred toward meeting your deductible ... before the policy benefits kick in. These eligible medical expenses also include items such as alternative & preventive treatments that are not normally covered by most insurance policies. Thus with use of your HSA, you'll receive a tax deduction on all qualified medical expenses regardless of whether your plan actually covers them.

As you will see, the debate is still ongoing in certain respects between the IRS, Federal & State governments, consumers, and the health insurance industry as to what exactly makes up an exhaustive list of HSA qualified expenses. The real reason for this controversy is that health savings account plans are relatively new on the health insurance scene having only been available since January of 2004. A slight evolution of the rules, standards, and guidelines are virtually inevitable.

We at HSAHealthSavings, we will keep you aware of any changes, and relay the information to you in the simplest way possible.

- Advance 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

- Diaper service

- Domestic help

- Health programs offered by resort hotels, health clubs, and gyms

- Illegal operations and treatments

- Illegally procured drugs

- Maternity clothes

- Premiums for health insurance, other than Cobra

- Scientology counseling

- Social activities

- Special foods or beverages

- Specially designed car for the handicapped other than an autoette or special equipment

- Swimming pool

- Travel for general health improvement

- Tuition and travel expenses for a problem child to a particular school

- Weight loss programs (subject to change under new IRS guidelines)

The above table of Non HSA qualified expenses is updated periodically.

This site describes basic information on services and benefits of the many health savings account plans available. It is not intended to provide legal, health, or tax advice. Consult your own legal, medical, and tax counsel for guidance on issues that may be affected by your specific circumstances.

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