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Investment Pick on Clark Howard An article on Clark Howard's site discusses how to invest your Health Savings Account. Health Savings Administrators is a top pick with our 22 Vanguard Funds.
22 Vanguard Funds
At Health Savings Administrators you have access to 22 Vanguard Funds - and unlike some of the competition, there is no required checking account.
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We make it easy to reach a live person when you call. We pride ourselves on superior customer service and we staff our call centers with experienced, friendly and educated people.....just like you!
Ranked Best HSA by Kiplingers You can build a portfolio with 22 low-cost Vanguard mutual funds - and you can invest immediately, instead of waiting to accumulate a large balance.

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Eligible Medical Expenses

An eligible medical expense is an expense that pays for healthcare services, equipment or medications for the account holder, their spouse, and any tax dependents. The IRS defines qualified medical expenses as amounts paid for the “diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body.” Click here for a complete list of eligible medical expenses.

 Examples of qualified medical expenses

  • Acupuncture
  • Alcoholism treatment
  • Ambulance services
  • Artificial limb or prosthesis
  • Artificial teeth
  • Birth control pills
  • Braille books/magazines (portion of costs)
  • Car adaptations (for persons with disabilities)
  • Chiropractors
  • Christian science practitioners
  • Contact lenses (including saline solution and cleaner)
  • Crutches
  • Dental treatment (x-rays, fillings, extractions, dentures, braces, etc.)
  • Diagnostic devices (such as a blood sugar test kit)
  • Doctor’s fees
  • Drug addiction treatment
  • Eyeglasses (including eye examinations)
  • Eye surgery (including laser eye surgery)
  • Fertility enhancement (including in-vitro fertilization)
  • Guide dog (for visually-impaired or hearing-impaired)
  • Hearing aids and hearing aid batteries
  • Hospital services (including meals and lodging)
  • Insulin
  • Laboratory fees
  • Lactation assistance supplies
  • Prescription medicines or drugs
  • Nursing home
  • Nursing services
  • Operations or surgery
  • Psychiatric care
  • Psychologist
  • Telephone equipment for hearing-impaired
  • Telephone equipment for visually-impaired
  • Therapy or counseling
  • Transplants
  • Transportation for medical care
  • Vasectomy
  • Wheelchair
  • X-rays

IMPORTANT:  As of 2011, your Health Savings Account (HSA) may no longer be used for over-the-counter drugs, unless they are prescribed by your doctor.

Insurance premiums are generally not considered qualified medical expenses. However, the following types of insurance premiums generally qualify:

  • Continuation coverage under federal law (i.e., COBRA)
  • Qualified long-term care insurance premiums
  • Any health plan maintained while an individual is receiving unemployment compensation under federal or state law
  • For accountholders age 65 and over (i.e., those eligible for Medicare), premiums for any health insurance (including Medicare Parts B & D premiums).  Premiums for a Medicare supplemental (Medigap) policy are not qualified medical expenses.

Prior to age 65, funds used to pay for non-eligible medical expenses are subject to normal income tax and a 20% penalty.  After age 65, HSA funds may be withdrawn for non-eligible expenses with no penalty (regular income tax will apply).