A "qualified medical expense" (as defined in IRC Section 213(d))
includes out-of-pocket expenditures for medical care for the HSA
account holder, his/her legal spouse, or his/her tax dependents, so long as such amounts are
not reimbursed by insurance or otherwise.
Over-the-counter medications
(OTCs) could be an eligible medical expense. Premiums, however, are not
"qualified medical expenses" except for the following types of insurance
coverage:
COBRA coverage
A qualified long-term care insurance contract
Any health plan maintained while the individual is receiving
unemployment compensation under federal or state law; or
Any deductible health insurance other than a Medicare supplemental
policy for those age 65 or older
Generally, all "qualified medical expenses" must be incurred after
the Health Savings Account is established in order to be reimbursable
on a tax-free basis.
You can view a list of
HSA Eligible Medical Expenses here. Additional examples of eligible expenses
and ineligible expenses can be found in IRS Publication 502. (Note: While examples
listed in Publication 502 are specific to itemized deductions for tax returns, not
all are HSA qualified. Consult your tax accountant to ensure accuracy.)
