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Comprehensive Guide10 min read

HSA Eligible Expenses: The Ultimate List for 2024

Your complete reference for IRS-qualified medical expenses, including 2024 updates on OTC contraceptives, condoms, and preventive care benefits.

What's New in 2024

Recent IRS Updates (Notice 2024-71 & 2024-75)

✓ Condoms Now Qualified

Male condoms are now treated as medical care expenses under section 213(d), making them eligible for HSA reimbursement without a prescription.

✓ OTC Contraceptives

Over-the-counter oral contraceptives (including emergency contraceptives) can now be covered by HDHPs without a deductible and are HSA-eligible.

✓ Breast Cancer Screening Clarification

All types of breast cancer screening for individuals not diagnosed with breast cancer are considered preventive care.

✓ Continuous Glucose Monitors (CGMs)

CGMs for individuals diagnosed with diabetes are generally treated as preventive care.

✓ COVID-19 Supplies

Personal protective equipment (masks, hand sanitizer, sanitizing wipes, disposable gloves) purchased to prevent COVID-19 spread remain eligible.

Important: Expenses are only qualified if incurred after your HSA was established. The IRS defines qualified medical expenses as amounts paid for "diagnosis, cure, mitigation, treatment, or prevention of disease" (IRS Publication 502).

Medical Services

Doctor & Specialist Visits

  • • Primary care physician visits
  • • Specialist consultations
  • • Copays and coinsurance
  • • Telemedicine appointments
  • • Second medical opinions
  • • Walk-in clinic visits
  • • Urgent care visits

Hospital & Procedures

  • • Inpatient hospital care
  • • Emergency room visits
  • • Outpatient surgery
  • • Ambulance services
  • • Surgical procedures
  • • Anesthesia
  • • Hospital facility fees

Diagnostic & Lab Tests

  • • Blood tests and panels
  • • X-rays and imaging (MRI, CT)
  • • Ultrasounds
  • • Biopsies
  • • COVID-19 testing
  • • Allergy testing
  • • Genetic testing (medical necessity)

Therapy & Rehabilitation

  • • Physical therapy
  • • Occupational therapy
  • • Speech therapy
  • • Chiropractic care
  • • Mental health counseling
  • • Psychiatric care
  • • Substance abuse treatment

Dental & Vision Care

Dental Services

Preventive Care

  • • Cleanings and exams
  • • Fluoride treatments
  • • Dental X-rays
  • • Sealants

Restorative Work

  • • Fillings
  • • Crowns and bridges
  • • Root canals
  • • Tooth extractions
  • • Dentures and partials
  • • Dental implants

Orthodontics

  • • Braces (metal, ceramic)
  • • Invisalign/clear aligners
  • • Retainers
  • • Orthodontic adjustments

Vision Care

Eye Exams & Glasses

  • • Comprehensive eye exams
  • • Prescription eyeglasses
  • • Prescription sunglasses
  • • Reading glasses
  • • Safety glasses (prescription)

Contact Lenses

  • • Contact lens exam
  • • Contact lenses (all types)
  • • Contact lens solution
  • • Lens cases and accessories

Corrective Surgery

  • • LASIK surgery
  • • PRK surgery
  • • Cataract surgery
  • • Other vision correction

Medications & Prescriptions

Good News: OTC Medications No Longer Need Prescriptions!

Since January 1, 2020, over-the-counter medications are HSA-eligible without a prescription. This includes pain relievers, cold medicine, allergy medication, and more.

Prescription Drugs

  • • All prescription medications
  • • Insulin (no Rx needed)
  • • Inhalers
  • • EpiPens
  • • Birth control pills
  • • Specialty medications

OTC Medications

  • • Pain relievers (Tylenol, Advil)
  • • Cold & flu medicine
  • • Allergy medication
  • • Acid controllers
  • • Sleep aids
  • • Anti-diarrheal medicine
  • • Motion sickness pills
  • • Nasal sprays

Topical Treatments

  • • Acne medication
  • • Anti-fungal cream
  • • Hemorrhoid treatment
  • • Antibiotic ointments
  • • Burn creams
  • • Wart removers
  • • Hydrocortisone cream

Medical Equipment & Supplies

Durable Medical Equipment

  • • Wheelchairs
  • • Walkers and canes
  • • Crutches
  • • Hospital beds
  • • Lift chairs
  • • CPAP machines
  • • Nebulizers
  • • Oxygen equipment
  • • Hearing aids & batteries
  • • Artificial limbs
  • • Breast pumps
  • • Blood pressure monitors
  • • Thermometers
  • • Pulse oximeters
  • • Glucose monitors (CGMs)

Diabetic Supplies

  • • Blood sugar test strips
  • • Glucose meters
  • • Lancets and lancing devices
  • • Insulin pumps and supplies
  • • Continuous glucose monitors
  • • Insulin syringes
  • • Test kits
  • • Diabetic shoes (with LMN)

First Aid & Home Care

  • • Bandages and gauze
  • • First aid kits
  • • Medical tape
  • • Ice packs
  • • Heating pads
  • • Braces and supports
  • • Compression stockings (with LMN)
  • • Medical gloves

Preventive Care

Screenings & Tests

  • • Annual physical exams
  • • Wellness checkups
  • • Cancer screenings (all types)
  • • Mammograms
  • • Colonoscopies
  • • Pap smears
  • • Prostate exams
  • • Blood pressure checks
  • • Cholesterol tests

Vaccines & Immunizations

  • • Flu shots
  • • COVID-19 vaccines
  • • Childhood immunizations
  • • Shingles vaccine
  • • Pneumonia vaccine
  • • HPV vaccine
  • • Tetanus boosters
  • • Travel vaccines

Special Conditions & Treatments

Pregnancy & Fertility

  • • Prenatal care and vitamins
  • • Ultrasounds
  • • Delivery and hospital costs
  • • Lactation consulting
  • • Breast pumps & supplies
  • • Fertility treatments (IVF, IUI)
  • • Egg/sperm storage
  • • Birth control (all types)
  • • Condoms (new in 2024)

Mental Health & Addiction

  • • Psychiatric care
  • • Psychologist/therapist visits
  • • Inpatient mental health treatment
  • • Substance abuse programs
  • • Smoking cessation programs
  • • Prescription medications for mental health
  • • Nicotine patches/gum (if prescribed)

Learning & Developmental

  • • Special education (if medically necessary)
  • • Tutoring for learning disabilities (with LMN)
  • • Dyslexia treatment
  • • Autism therapy (ABA, speech, OT)
  • • ADHD treatment and counseling

Items Requiring Letter of Medical Necessity (LMN)

Some items are eligible only with a Letter of Medical Necessity from your healthcare provider. This letter must explain that the expense is for treating a specific medical condition, not for general health.

Common LMN Items

  • • Weight-loss programs (for diagnosed obesity)
  • • Gym/health club memberships
  • • Massage therapy
  • • Compression hosiery/socks
  • • Orthopedic shoes (excess cost)
  • • Humidifiers
  • • Air purifiers
  • • Special mattresses
  • • Service animals (guide dogs)
  • • Home modifications (wheelchair ramps)

How to Get an LMN

  1. Ask your doctor for a letter stating:
    • Your specific medical condition
    • Why the expense is medically necessary
    • How it treats your condition
  2. Keep the LMN with your receipt
  3. Store for at least 7 years (IRS audit period)

Without an LMN, these expenses are NOT HSA-eligible and could trigger a 20% penalty + taxes.

What's NOT Eligible

Using HSA funds for non-qualified expenses results in income tax + 20% penalty if you're under 65.

General Health Items

  • × Vitamins/supplements (for general health)
  • × Gym memberships (without LMN)
  • × Fitness trackers & smartwatches
  • × Cosmetics & toiletries
  • × Teeth whitening (cosmetic)
  • × Hair loss treatments (non-medical)
  • × Dietary/herbal supplements (without LMN)

Personal Care

  • × Toothpaste & dental floss
  • × Shampoo & conditioner
  • × Deodorant
  • × Lotion & moisturizers
  • × Makeup
  • × Perfume/cologne
  • × Soap & body wash

Insurance Premiums

  • × Regular health insurance premiums
  • × Medicare supplemental policies
  • × Employer-sponsored coverage
  • ✓ COBRA premiums (eligible)
  • ✓ Medicare Parts B, C, D (eligible after 65)
  • ✓ Long-term care insurance (eligible)
  • ✓ Unemployment health coverage (eligible)

Other Ineligible

  • × Cosmetic surgery (unless medically necessary)
  • × Massage (without LMN)
  • × Marriage/relationship counseling
  • × Maternity clothes
  • × Funeral/burial expenses
  • × Illegal treatments/medications
  • × Already-reimbursed expenses

Documentation Best Practices

Save ALL receipts - The IRS can audit HSA activity up to 7 years after filing.

Include required details - Patient name, provider, date, service description, and cost.

Digital storage is accepted - Scan or photograph receipts and store securely.

Track with software - Tools like HSA Vault automatically extract receipt details including CPT codes, dates, and amounts.

Learn more: Common HSA Receipt Mistakes to Avoid

Automate Your HSA Expense Tracking

Stop manually organizing receipts. HSA Vault uses AI to extract expense details, CPT codes, and provider information automatically from your medical receipts.