Can I Buy a Humidifier With My HSA Card?

A Health Savings Account (HSA) provides a tax-advantaged savings and spending vehicle for qualified medical expenses. These accounts are paired with high-deductible health plans, allowing individuals to save pre-tax money, which can then grow tax-free and be withdrawn tax-free for eligible healthcare costs. Understanding the specific rules governing what constitutes an eligible expense is important for account holders to maximize their benefits and maintain compliance.

Understanding HSA Eligible Expenses

The Internal Revenue Service (IRS) defines qualified medical expenses as costs primarily incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. This broad definition includes common healthcare costs such as doctor visits, prescription medications, vision care, and dental treatments. For an expense to be eligible for tax-free withdrawal from an HSA, it must be for medical care and not merely for general health or comfort.

Certain items or services, especially medical equipment or devices, may require a Letter of Medical Necessity (LOMN) or a prescription from a healthcare provider to be considered a qualified medical expense. This documentation establishes the item’s medical purpose, preventing its use for personal reasons. The LOMN must come from a licensed healthcare provider and detail the patient’s condition and how the item or service helps treat or prevent it.

Humidifiers and HSA Eligibility

Generally, humidifiers are not considered qualified medical expenses for HSA reimbursement unless they are specifically prescribed by a physician for a diagnosed medical condition. Items purchased for general comfort, to alleviate dry air without a medical diagnosis, or for non-medical reasons do not qualify. The IRS distinguishes between items for general health and those directly related to medical treatment.

A humidifier may become HSA eligible if a doctor determines it is a necessary part of a treatment plan for specific medical conditions. These conditions could include severe allergies, asthma, chronic respiratory issues, or chronic sinusitis, where maintaining a certain humidity level directly supports the patient’s health. The required prescription or Letter of Medical Necessity must clearly state the medical condition and how the humidifier is required for its treatment.

Documentation and Compliance

Maintaining thorough documentation is a fundamental aspect of HSA compliance, especially after purchasing an item like a humidifier with HSA funds. Account holders should retain the original receipt of purchase, clearly showing the item, date, and cost. Furthermore, if a Letter of Medical Necessity or a doctor’s prescription was required for eligibility, a copy of this document must also be kept.

These records are important for substantiating that distributions from the HSA were for qualified medical expenses, particularly in the event of an IRS audit. If HSA funds are used for non-qualified expenses, the distributed amount becomes taxable income for the account holder. Additionally, if the account holder is under the age of 65, a 20% penalty tax is applied to the non-qualified distribution.