Can I Use My HSA for Tampons and Menstrual Products?
Navigate using your Health Savings Account for everyday health and personal care needs. Learn how recent eligibility updates can benefit your spending.
A Health Savings Account (HSA) provides individuals with a tax-advantaged method for saving and paying for qualified medical expenses. This account is typically paired with a high-deductible health plan (HDHP). Contributions can be made on a pre-tax basis, funds grow tax-free, and withdrawals remain untaxed, provided they are used for eligible healthcare costs. The overall objective of an HSA is to help manage out-of-pocket medical expenses, offering a financial cushion for healthcare needs both in the present and future.
Eligibility for Menstrual Products
Menstrual care products are recognized as qualified medical expenses for Health Savings Account (HSA) purposes. This significant change was implemented through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020, which clarified that amounts paid for menstrual care products are to be treated as medical care, making them eligible for reimbursement or direct payment using HSA funds. This reclassification marked a departure from previous interpretations, which often did not consider these items as medical necessities.
The provisions of the CARES Act regarding menstrual products were made retroactive to January 1, 2020. This means individuals can use their HSA funds for eligible purchases made from that date onward, even if the purchase occurred before the act was signed. The inclusion of these products allows consumers to leverage pre-tax dollars for essential health items, potentially saving between 30% to 40% on purchases.
Types of Qualifying Menstrual Products
The expanded eligibility under the CARES Act covers a broad range of menstrual care products. These items are designed to absorb or collect menstrual flow and support personal hygiene during menstruation. Qualifying products include tampons, which are inserted internally, and sanitary pads and liners, worn externally.
Beyond disposable options, reusable menstrual products are also covered. This includes menstrual cups, menstrual discs, reusable cloth pads, and period underwear, designed with absorbent layers. Menstrual cup cleansers and washes specifically for these products are also eligible.
Using Your HSA for Purchases
Using your HSA for eligible menstrual product purchases offers several practical 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 expenses in-store or online. Alternatively, you can pay for the items out-of-pocket and then submit a claim for reimbursement from your HSA.
When seeking reimbursement, individuals typically log into their HSA provider’s online portal to submit the expense amount, date, and description. Funds can then be transferred to a linked bank account or issued via check.
It is important to retain detailed receipts for all menstrual product purchases, regardless of the payment method. These receipts serve as documentation for qualified medical care, necessary in case of an audit by the Internal Revenue Service.
The IRS requires account holders to keep records demonstrating that distributions were used exclusively for qualified medical expenses. There is no time limit for reimbursement, provided the HSA was established when the expense was incurred.