Are Air Filters and Purifiers HSA Eligible?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and spend on healthcare expenses. These accounts are designed to help individuals cover medical costs, often in conjunction with a high-deductible health plan. A common question arises regarding the eligibility of everyday items, such as air filters and air purifiers, for HSA reimbursement. Understanding the specific criteria set by the Internal Revenue Service (IRS) is essential to determine if these expenses qualify.

General HSA Eligibility Requirements

The Internal Revenue Service (IRS) establishes specific rules for what constitutes a “qualified medical expense” eligible for HSA funds. An expense must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body. This definition, found in IRS Publication 502 and Internal Revenue Code Section 213, emphasizes that the expense must primarily alleviate a physical or mental defect or illness.

Expenses for general health or well-being, or those not directly related to a specific medical condition, do not qualify. Items purchased for general home maintenance or comfort, or those acquired regardless of a medical condition, are not eligible. The underlying principle is medical necessity, meaning the item or service must be essential for addressing a diagnosed health issue.

Air Filters and Related Devices

Air filters and related devices, such as air purifiers and furnace filters, are not considered qualified medical expenses for HSA reimbursement. Their ordinary use improves general living conditions or maintains a home environment. Purchasing these items for routine household use or general well-being does not meet the IRS criteria for medical necessity.

However, specific circumstances allow these devices to be HSA eligible. Eligibility requires a diagnosed medical condition, such as severe asthma or allergies, where a healthcare provider explicitly recommends the item for treatment or mitigation of that condition. A Letter of Medical Necessity (LMN) from a licensed physician is required in these cases. This letter must clearly state the medical necessity, explaining how the air filter or purifier will directly alleviate or treat the diagnosed ailment.

The LMN should include the patient’s diagnosis, the provider’s qualifications, and a detailed explanation of how the device prevents or treats the specific medical condition. Without this explicit medical recommendation, and if the item is primarily for general use, it will not qualify.

Claiming HSA Funds for Eligible Expenses

Once an expense is determined to be HSA eligible, such as an air purifier with a valid Letter of Medical Necessity, individuals can use their HSA funds. This involves either using a dedicated HSA debit card at the point of purchase or paying out-of-pocket and then seeking reimbursement from the HSA. Many HSA administrators offer online portals for submitting reimbursement requests.

Maintaining accurate records is important for all HSA transactions. This documentation serves as proof of eligibility in case of an IRS audit, which can occur for up to seven years after a tax return is filed. Necessary records include detailed receipts or invoices showing the date, description, and amount of the expense. If a Letter of Medical Necessity was required, a copy of this document should also be retained.

It is advisable to keep Explanation of Benefits (EOB) statements from your health insurance carrier, as they further substantiate medical expenses. The burden of proving an expense’s eligibility rests solely with the account holder. Proper record-keeping ensures that reimbursements remain tax-free and helps avoid potential penalties, such as a 20% penalty on non-qualified distributions.