Can You Use HSA for an Air Purifier?

A Health Savings Account (HSA) is a tax-advantaged savings account designed for healthcare expenses. Individuals enrolled in a high-deductible health plan (HDHP) can contribute pre-tax dollars to an HSA. These funds grow and can be withdrawn tax-free for qualified medical costs, offering a way to manage healthcare expenditures.

General HSA Eligibility Rules

The Internal Revenue Service (IRS) defines a “qualified medical expense” as costs primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. IRS Publication 502 provides an extensive list of eligible expenses, including common items like doctor’s office visits, prescription medications, and various types of medical equipment.

Expenses for general health improvement, comfort, or cosmetic purposes do not qualify. For instance, gym memberships or nutritional supplements are not eligible unless a medical practitioner specifically recommends them to treat a diagnosed condition. The primary intent behind the expense must be medical care, not merely enhancing overall well-being or appearance.

Air Purifiers as Qualified Medical Expenses

Air purifiers are not considered qualified medical expenses for HSA purposes unless specific conditions are met. An air purifier must be primarily for the treatment or alleviation of a specific medical condition, such as severe allergies, asthma, or chronic respiratory issues, as diagnosed by a healthcare professional. It cannot be purchased simply for general health improvement or comfort.

To substantiate the medical necessity of an air purifier, a written recommendation from a licensed healthcare provider, known as a Letter of Medical Necessity (LMN), is required. This letter should clearly state the specific medical condition, explain how the air purifier is necessary to treat or alleviate that condition, and indicate the duration for which it is recommended. Without such a letter, the expense for an air purifier will not qualify for HSA reimbursement.

Documentation and Reimbursement

When using an HSA for an eligible air purifier, you must gather and maintain the purchase receipt and the Letter of Medical Necessity (LMN) from your healthcare provider. Obtaining the LMN before or at the time of purchase is advisable, as it validates the medical necessity of the expense. These documents serve as proof that the expenditure meets IRS requirements for qualified medical expenses.

The process for submitting for reimbursement from an HSA involves accessing your HSA administrator’s online portal or mobile application, or by mailing in a reimbursement form. Within these platforms, you will upload digital copies of your purchase receipt and the LMN, along with details of the expense. After submission, reimbursement is processed through direct deposit to your linked bank account or by check, within a few business days.

Maintaining thorough records is important for tax purposes and in the event of an IRS audit. Keep copies of all receipts, the LMN, any correspondence with your HSA administrator, and Explanation of Benefits (EOB) statements from your health insurance. The IRS generally requires these records to be kept for at least as long as your income tax return is subject to an audit, which is typically three to seven years, or as long as you maintain the HSA account, whichever period is longer. Failing to provide documentation for non-qualified expenses can result in the amount being subject to income tax and an additional 20% penalty.