Health Savings Account (HSA) Qualified Medical Expenses (CRS Report for Congress)
| Release Date |
Nov. 15, 2024 |
| Report Number |
IF12818 |
| Report Type |
In Focus |
| Authors |
Ryan J. Rosso |
| Source Agency |
Congressional Research Service |
Summary:
Section 223 of the Internal Revenue Code (IRC) allows
individuals to establish and contribute to a health savings
account (HSA) while they are covered under certain highdeductible health plans (HDHPs). Individuals can withdraw
money from their HSA to pay for eligible medical
expenses, also known as qualified medical expenses, for the
account holder, their spouse, or their dependents. These
expenses are excluded from gross income for federal
income taxes even if the individual no longer has an HSAqualified HDHP at the time of the withdrawal.
For HSA purposes, qualified medical expenses include
most items and services that would be considered medical
care for the medical and dental expenses itemized
deduction, as described in IRC Section 213(d). Qualified
medical expenses also include menstrual care products and
over-the-counter medications and drugs without a
prescription. Premiums generally are not considered a
qualifying medical expense, except in limited instances.
