Can I Buy Feminine Products With an HSA?

Health Savings Accounts (HSAs) offer a tax-advantaged way for individuals to save and pay for qualified medical expenses. These accounts are available to those enrolled in a high-deductible health plan. A common inquiry among account holders concerns the eligibility of feminine hygiene products for purchase with HSA funds, and recent legislative changes have clarified this matter.

HSA Eligibility for Feminine Hygiene Products

Feminine hygiene products are classified as eligible expenses for Health Savings Accounts. This reclassification occurred with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. Public Law 116-136 amended the Internal Revenue Code to include these items as qualified medical expenses, effective January 1, 2020.

This legislative change means that products essential for menstrual care are now treated similarly to other medical expenses for HSA purposes. Eligible items include, but are not limited to, tampons, pads, liners, menstrual cups, and other similar products used for menstruation.

Before this change, many over-the-counter medical products, including feminine hygiene items, often required a prescription to be eligible for HSA reimbursement. The CARES Act removed this prescription requirement for over-the-counter medicines and menstrual care products, simplifying their eligibility.

Using Your HSA for Qualified Purchases

Utilizing your HSA for eligible feminine hygiene products typically involves one of two methods. Many HSA providers issue a debit card linked directly to your account, which can be used at the point of sale, similar to a regular debit card. This allows for immediate payment for qualified medical expenses.

Alternatively, you can pay for eligible expenses out-of-pocket using personal funds and then seek reimbursement from your HSA administrator. To do this, you would typically log into your HSA account online, submit a reimbursement request, and transfer the funds to a linked personal bank account. There is no time limit for requesting reimbursement, provided the expense was incurred after your HSA was established.

Maintaining thorough records is essential for all HSA transactions. You should retain detailed receipts for every purchase, whether paid directly with your HSA card or reimbursed later. These receipts should clearly show the date of purchase, the vendor, a description of the item, and the amount paid. Such documentation is necessary for tax purposes and can be requested in the event of an IRS audit.