Find a plan.
A TRUSTED INDEPENDENT HEALTH INSURANCE GUIDE SINCE 1999.
Call our agency partners 866-553-3223

Featured

Featured
What are the deadlines for the ACA’s open enrollment period?
A list of the open enrollment deadlines for enrollment in 2023 ACA-compliant health insurance in every state. Open enrollment ended on January 15, 2023 in most states.

Latest News & Topics

Latest News & Topics

Featured

Featured
Applying for ACA Coverage?
Understanding how small differences in projected income can have a large impact on your health plan costs can be key to obtaining affordable coverage.
Call our agency partners 866-553-3223
Can I use my HSA to purchase over-the-counter medications?

Image: Rido / stock.adobe.com

Image: Rido / stock.adobe.com

Can I use my HSA to purchase over-the-counter medications?

Q: Can I use my HSA to purchase over-the-counter medications?

A: Yes, you can. The rules on this have changed over time.

As of 2011, the ACA prohibited the purchase of over-the-counter medications with health savings account (HSA) funds, unless a doctor wrote a prescription for them. But Section 4402 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act changed that. 

The law, which was enacted in March 2020, eliminated the sentence at the end of Section 223(d)(2) of the Internal Revenue Code of 1986 that had previously prohibited the purchase of non-prescription over-the-counter medications with HSA money.

(The law used to say that qualified medical expenses “shall include an amount paid for medicine or a drug only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.” That provision was eliminated under the CARES Act.)

Section 4402 of the CARES Act also changed the rules to allow menstrual products to be purchased with HSA funds.

Both of these changes are permanent and were retroactively effective on January 1, 2020.


Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.

Related articles

A health savings account is a tax-advantaged savings account combined with a high-deductible health insurance policy to provide an investment and health coverage. Deposits to the HSA are tax-deductible and ...
Health savings accounts (HSAs) can be an excellent financial tool, and provide myriad benefits to people willing and able to use them. 
If you're healthy – or sick – and have some money saved or plan to save some in the coming year, you might want to consider a high-deductible health insurance ...
Q. Can I still have an HSA and HDHP under the ACA's regulations? A. Yes. HSA-qualified high deductible plans fit easily within the guidelines established by the ACA. And they ...
Q. What is the difference between a Medical FSA and an HSA? A. Both FSAs and HSAs are tax-advantaged accounts that allow people to save money to pay for qualified ...
When choosing a health plan during open enrollment or a special enrollment period, there's a less obvious form of healthcare savings you might reap – depending on the plan you choose: ...
If you're considering a health savings account, but you're on the fence about whether it's the right move for you, here are 10 HSA advantages to keep in mind:
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x