A child at a doctors office receiving a hearing aid

What does an HSA cover?

Nov 16, 2022

Empower Insights

A quick guide to the out-of-pocket expenses your health savings account can cover

If you’re worried about healthcare expenses in retirement, you’re not alone. In fact, according to recent data from our 2022 Empowering America’s Financial Journey report, the top three things Americans are worried will impact their finances are:

Inflation (92%)
A recession (85%)
Healthcare costs (83%)¹

And while you can’t necessarily control rising inflation or healthcare costs, you can take steps to help minimize the impact to your personal finances. For starters, if you have a high-deductible health plan, you can use a health savings account (HSA) to set aside money to pay for some medical expenses tax-free.²

How much can you contribute to an HSA?

In 2023, for an individual with self-only coverage under a high deductible health plan, the contribution limit is $3,850. For an individual with family coverage under a high deductible health plan, the contribution limit is $7,750.

Here are some examples of what can be covered with HSA funds:

Medical treatments	Acupuncture Chiropractic care Fertility treatments In-home nursing services Necessary surgery (including necessary reconstructive surgery) Osteopathic care Qualified long-term care services
Medical imaging and tests	MRI CT scan X-ray Lab tests
Prescribed medicines	Prescription drugs Prescribed over-the-counter drugs Insulin
Medical supplies	Bandages Permanent modifications to your home Special equipment installed in your car Crutches Wheelchair Lactation supplies Hearing aids Oxygen Pregnancy test kit Artificial limbs Service animal
Vision care	Eye exams Eyeglasses Contact lenses Contact lens solution Eye surgery
Dental care	Dental exams Fillings Braces Dentures
Mental health care	Psychiatric care Psychoanalysis Psychologist fees
Special education expenses	Tutoring and schooling in: Overcoming learning disabilities Learning Braille Learning lip reading Remedial language training
Addiction treatment	Doctor-recommended inpatient treatment for alcoholism and drug addiction Programs to quit smoking
Certain health insurance premiums	Long-term care insurance Healthcare continuation coverage Health coverage while on unemployment Medicare A and B if you are age 65 or older

What an HSA doesn’t cover

Keep in mind not every kind of medical expense is reimbursable. Here are some common expenses that an HSA specifically does not cover:

Controlled substances, even if legalized in your state
Funeral expenses
General household help
Nutritional supplements
Teeth whitening
Unnecessary cosmetic surgery

As you can see, HSAs are a great way to pay for your current healthcare costs. But it’s also important to point out there’s no “use it or lose it” provision (like with FSAs), so you can rollover unused funds each year. And you could potentially get more out of your HSA when you use it to save for the future. That’s because HSAs offer a “triple tax advantage”: tax-deductible contributions, tax-free growth and tax-free withdrawals for qualified medical expenses.²

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1 Empower, Empowering America’s Financial Journey, November 2022.

2 Contributions, any earnings and withdrawals are federal income tax-free if used to pay for qualified medical expenses. State income taxes may still apply. HSA funds used for nonqualified medical expenses may be subject to applicable federal and state income taxes and/or penalties.