Can You Buy an Air Purifier With an HSA?
Use your HSA for an air purifier? Learn the specific IRS guidelines, medical necessity, and documentation needed to ensure eligibility.
Health Savings Accounts (HSAs) offer a tax-advantaged way for individuals with eligible high-deductible health plans to save and pay for qualified medical expenses. These accounts provide a triple tax benefit: contributions are tax-deductible, earnings grow tax-free, and withdrawals for eligible medical expenses are also tax-free. HSAs are designed to empower individuals to manage their healthcare costs more efficiently, providing a dedicated fund for various health-related needs.
Understanding HSA Eligible Expenses
The Internal Revenue Service (IRS) establishes guidelines for what constitutes an HSA eligible expense. These expenses must be primarily 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 covers a wide range of common medical costs, including doctor visits, prescription medications, dental treatments, and vision care. Expenses for general health items that do not address a specific medical condition are not eligible.
For an expense to qualify, it must be incurred after the HSA is established and not be reimbursed by another source, like health insurance. IRS Publication 502 provides a comprehensive list of qualified medical expenses. The intention behind the expense must be medical care, not beneficial for general wellness.
Air Purifiers and Medical Necessity
Air purifiers are not considered eligible HSA expenses unless a specific medical necessity is established. The IRS requires that the purchase of an air purifier be directly tied to the treatment, mitigation, or prevention of a diagnosed medical condition. Improving general indoor air quality for comfort or preventative measures without a diagnosed health issue does not qualify the purchase for HSA funds.
To establish medical necessity, a Letter of Medical Necessity (LMN) or a prescription from a licensed healthcare provider is required. It must specify the individual’s particular medical condition, such as severe allergies, asthma, or chronic respiratory issues. The LMN must clearly state how the air purifier is recommended for the treatment or mitigation of that specific condition. It must also indicate the duration for which the air purifier is considered medically necessary, and it must be signed and dated by the healthcare provider.
Using Your HSA for an Approved Purchase
Once an air purifier is deemed an eligible expense with the necessary Letter of Medical Necessity, there are primary methods for using HSA funds. Many HSA providers issue a debit card linked directly to the account, which can be used to pay for the purchase at the time of sale. Alternatively, an individual can pay for the air purifier out-of-pocket and then submit a claim to their HSA administrator for reimbursement.
Maintaining thorough documentation is important for all HSA-related expenses, especially for purchases requiring an LMN. Account holders should retain the original receipt for the air purifier, showing the purchase date and amount. A copy of the Letter of Medical Necessity from the healthcare provider must also be kept. These records are important for substantiating the eligibility of the expense in the event of an IRS audit, as the burden of proof rests with the account holder.