Health savings accounts (HSAs) began as a tool to help you pay for doctor bills and prescriptions but have become equally well-known as retirement accounts, thanks to their unique tax advantages. However, even that doesn't paint a complete picture of what this account can do for you. Here are 10 lesser-known things you can do with your HSA funds.
1. Birth control
You can use your HSA funds to purchase all types of birth control. This ranges from condoms and birth control pills to IUDs and even more permanent methods, like tubal ligation or vasectomies.
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2. Fertility assistance
On the flip side, if you're struggling to conceive a child, you can put your HSA funds toward fertility treatments. This can include egg, sperm, and embryo storage fees if you choose to save these for later use.
3. Travel for medical care
You can put your HSA funds toward travel if the trip is primarily for and essential to receiving medical care. Specific travel expenses that are HSA-eligible include:
- Bus, train, taxi, or plane fares
- Ambulance services
- Car transportation ($0.22 per mile)
- Lodging, up to $50 per night for each person traveling
You cannot use your HSA funds to pay for the cost of meals you incur on your trip or for any trips taken to improve your general morale, even if you do this at the advice of your doctor.
4. Medical-related home improvements
You can't use HSA funds to make upgrades to your home that purely improve its aesthetic appeal. But you can use that money for home improvements that are in some way related to the medical care of one of its occupants.
For example, if someone in your household has recently been confined to a wheelchair, you can use your HSA funds to install wheelchair ramps in your home. You can also use your HSA funds to put railings or support bars in bathrooms and to widen hallways and door frames, among other things.
5. Therapy
Mental health treatment is an acceptable use of HSA funds. If you need therapy or prescription medication to help you deal with a mental health issue, you can tap your HSA to cover this.
6. Lactation supplies
New parents can use their HSA funds to purchase breast pumps and other supplies that assist lactation, like breast milk storage bags. It can also cover the cost of assistance from a lactation consultant.
7. Special education
If a doctor recommends that a child receive special education or tutoring due to a learning disability or a physical or mental impairment, you can use your HSA funds to cover these costs. If the child attends a special school away from home, all tuition, meals, and lodging expenses are HSA-eligible.
8. Breast reconstruction surgery
Those who have had mastectomies due to breast cancer can tap their HSA funds to pay for breast reconstruction surgery or a breast prosthesis. But breast augmentation surgeries done purely for cosmetic purposes are not HSA-eligible.
9. Some insurance premiums
HSA funds are most commonly used to pay for health insurance deductibles and copays, but you can use them to pay for your plan premiums as well in the following circumstances:
- Long-term care insurance
- Health care continuation coverage (i.e. COBRA coverage)
- Health care coverage while receiving federal or state unemployment benefits
- Medicare premiums
10. Menstrual products
Menstrual products became HSA-eligible with the passage of the CARES Act in March 2020. This includes tampons, pads, menstrual cups, and more.
This is far from a comprehensive guide to what you can use your HSA funds for. But as the items above clearly show, these accounts can help with a lot more than just doctor bills and retirement expenses. If you have any questions about what else is covered by your HSA (and what isn't), check out our list of HSA-eligible expenses for 2022 or 2023.
