Can You Use HSA for an Adjustable Bed?

General Rules for HSA-Eligible Expenses

A Health Savings Account (HSA) provides a tax-advantaged way for individuals to save and pay for qualified medical expenses. These accounts help those with high-deductible health plans manage healthcare costs. Contributions are tax-deductible, funds grow tax-free, and withdrawals for eligible medical expenses are also tax-free.

The Internal Revenue Service (IRS) defines “qualified medical expense” in IRS Publication 502. Expenses must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease. They also include costs for treatments affecting any structure or function of the body. This emphasizes that an expense must be directly related to a medical need, not for general health improvement.

Common eligible expenses include doctor visits, prescription medications, dental care, and vision services. However, items merely beneficial to general health, such as vitamins or a vacation, are not qualified medical expenses. Understanding this principle is essential for determining if specific items, especially those with dual purposes, can be covered by HSA funds.

Specific Criteria for Adjustable Beds

An adjustable bed is not automatically a qualified medical expense for HSA purposes. Its eligibility hinges on medical necessity, meaning it must primarily alleviate or treat a specific medical condition. An adjustable bed purchased solely for comfort or general sleep improvement would not qualify.

For an adjustable bed to be HSA-eligible, a qualified healthcare provider must deem it medically necessary. This requires a Letter of Medical Necessity (LMN) or a prescription from a licensed professional, such as a physician or physical therapist. The LMN serves as documentation explaining why the adjustable bed is essential for the patient’s health.

The LMN should contain specific details to substantiate the medical need. It must include the patient’s diagnosis and clearly explain how the adjustable bed will treat or alleviate the condition. For instance, it might detail how the bed helps manage chronic back pain, severe acid reflux, sleep apnea by elevating the upper body, or aids in post-surgical recovery. The letter should also indicate the duration for which the treatment is needed, not exceeding 12 months.

Required Documentation

To substantiate an adjustable bed as an HSA-eligible expense, meticulous record-keeping is necessary. The primary document required is the Letter of Medical Necessity (LMN) from a licensed healthcare provider. This letter should clearly outline the diagnosed medical condition, the specific purpose of the adjustable bed in treating that condition, and the recommended duration of its use. Without this medical certification, the expense is unlikely to qualify.

In addition to the LMN, you must retain detailed receipts for the adjustable bed purchase. These receipts should clearly show the vendor’s name, the date of purchase, a description of the item, and the total amount paid. This financial documentation proves the expense was incurred.

It is also advisable to keep any supporting medical records that corroborate the information in the LMN. These might include diagnostic reports, physician’s notes, or test results that confirm the medical condition. Maintaining these records is important for tax purposes and in case your HSA administrator or the IRS requests verification. Keep these records for at least three years after the tax filing date.

Accessing Your HSA Funds

Once the adjustable bed is a qualified medical expense and you have the Letter of Medical Necessity, you can access your HSA funds. One common method is to use your HSA debit card directly at the point of sale. Many merchants selling medical equipment accept these cards, allowing for immediate payment.

Alternatively, you can pay for the adjustable bed out-of-pocket using personal funds and then reimburse yourself from your HSA. This method offers flexibility, especially if you want your HSA funds to continue growing tax-free. To reimburse yourself, transfer money from your HSA to your personal bank account, often through an online portal or by writing a check.

Some HSA administrators may also offer an option to submit a claim directly to them for payment to the vendor. Regardless of the method chosen, keep all your documentation, including the detailed receipt and the Letter of Medical Necessity. While you may not need to submit these documents for every transaction, they are important for your personal records in case of an IRS audit.