Are Pads and Menstrual Products Covered by HSA?

A Health Savings Account (HSA) is a specialized savings account offering tax advantages for healthcare expenses. It is available to individuals enrolled in a high-deductible health plan. The primary purpose of an HSA is to provide a tax-efficient way for individuals to save and pay for qualified medical costs. Funds contributed to an HSA are tax-deductible, grow tax-free, and withdrawals for eligible expenses are also tax-free.

Understanding HSA Eligible Expenses

The Internal Revenue Service (IRS) defines what constitutes a “qualified medical expense” for HSA purposes. These definitions are found in IRS Publication 502. 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.

Common examples of qualified medical expenses include payments for doctor visits, prescription medications, dental care, and vision care. However, items for general health or personal care without a direct medical purpose do not qualify. For instance, general toiletries or cosmetics are not eligible.

Menstrual Products as Qualified Medical Expenses

The Coronavirus Aid, Relief, and Economic Security (CARES) Act explicitly recognized menstrual care products as qualified medical expenses. This change was effective from January 2020. The CARES Act removed previous ambiguities and the requirement for a prescription or a specific medical condition for these items to be HSA eligible.

Products such as tampons, pads, liners, cups, sponges, and other similar items used for menstruation are now covered. This change allows consumers to use their HSA funds for these routine and necessary products.

Using Your HSA for Menstrual Products

One common method is to use an HSA-linked debit card directly at the point of sale, similar to a regular bank card. This allows for immediate payment from your account for qualified purchases. Many HSA providers also offer online payment options or check-writing capabilities.

Alternatively, you can pay for menstrual products out-of-pocket using personal funds and then reimburse yourself from your HSA. This option is flexible, allowing you to transfer funds from your HSA to your personal checking or savings account. It is important to maintain detailed records, such as receipts, for all HSA-related purchases. These records are necessary for tax purposes and in case of an audit. It is advisable to consult with your specific HSA administrator or plan provider for any unique requirements or documentation policies they may have.