Can You Use an HSA for Hearing Aids?

A Health Savings Account (HSA) is a tax-advantaged savings account for individuals enrolled in a high-deductible health plan (HDHP). It allows users to save and pay for qualified medical expenses with tax benefits. This article clarifies how HSA funds can be used for hearing aids and related care, providing valuable information.

HSA Eligibility for Hearing-Related Expenses

The Internal Revenue Service (IRS) defines qualified medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Hearing aids are medical devices for treating hearing loss. Therefore, expenses for hearing aids fall within the IRS definition of qualified medical expenses.

The IRS specifically lists hearing aids as an eligible medical expense in its guidance, such as Publication 502. Funds from an HSA can be withdrawn tax-free to pay for these devices, provided the expenses are incurred after the HSA has been established.

Qualifying Hearing Care Expenses

Beyond the hearing aids themselves, many related hearing care expenses also qualify for HSA reimbursement. This includes the cost of hearing aid batteries, repairs, and maintenance.

Other qualifying costs include maintenance supplies like cleaning kits and drying units, and essential accessories that directly support the hearing aid’s function. Professional services such as audiology exams, hearing tests, fittings, and adjustments are also covered. Custom ear molds, which are often necessary for proper hearing aid fit and performance, are eligible. These expenses must primarily serve a medical purpose rather than being for general wellness or cosmetic enhancements.

Using Your HSA Funds

There are common methods for using HSA funds to pay for qualifying hearing care expenses. One straightforward approach is to use an HSA-linked debit card at the point of sale, much like a regular bank card. Many HSA providers also offer online payment options, allowing individuals to pay bills directly from their account portal. Some accounts even provide checkbooks for those who prefer paper payments.

Alternatively, you can pay for expenses out-of-pocket using personal funds and then reimburse yourself from your HSA. This reimbursement can be done through an online transfer to your personal bank account or by writing yourself a check. It is important to note that expenses must be incurred after your HSA was opened to be eligible for tax-free reimbursement.

Regardless of the payment method, maintaining thorough records, such as receipts, invoices, and any prescriptions, is crucial for tax purposes. These records serve as proof that withdrawals were for qualified medical expenses, helping to avoid potential penalties or issues during an IRS audit.