What does an HSA cover?
What does an HSA cover?
What does an HSA cover?

Key Takeaways
Key Takeaways
HSA funds cover many things, from medical treatments to prescribed medications to dental care.
HSA funds cover many things, from medical treatments to prescribed medications to dental care.
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 |
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Medical imaging and tests |
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Prescribed medicines |
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Medical supplies |
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Vision care |
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Dental care |
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Mental health care |
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Special education expenses |
Tutoring and schooling in:
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Addiction treatment |
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Certain health insurance premiums |
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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
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.
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