Can You Use HSA Funds for Ibuprofen?

Health Savings Accounts (HSAs) offer a way for individuals to manage healthcare costs. These accounts help people save and pay for qualified medical expenses with tax advantages. Understanding which expenses are eligible for HSA funds is important for maximizing these benefits and ensuring compliance with tax regulations.

Understanding Qualified Medical Expenses

The Internal Revenue Service (IRS) defines a “qualified medical expense” for HSA purposes. These are costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This definition covers a wide range of healthcare services and products.

Common examples of qualified medical expenses include doctor visits, hospital care, prescription medications, and various diagnostic services like X-rays and lab tests. Certain medical equipment necessary for treatment or prevention also falls under this category. The expense must primarily relate to alleviating a physical or mental defect or illness, not merely for general health benefit.

Over-the-Counter Medication Eligibility

Before 2020, most over-the-counter (OTC) medications, including common pain relievers like ibuprofen, were not considered qualified medical expenses unless prescribed by a doctor. This requirement often created an additional step for individuals seeking reimbursement for everyday health needs. The Affordable Care Act (ACA) of 2010 introduced this prescription requirement.

A change occurred with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. This legislation permanently removed the prescription requirement for OTC medications, making them eligible for HSA reimbursement. You can now use your HSA funds to purchase items such as ibuprofen, acetaminophen, cold and flu medicines, allergy medications, and acid controllers without a doctor’s note.

This expansion retroactively applied to purchases made on or after January 1, 2020. The CARES Act also made menstrual care products eligible for HSA funds for the first time. This change allows individuals to use their tax-advantaged accounts for a broader array of routine healthcare items.

Record Keeping for HSA Expenses

Maintaining records for all HSA-funded expenses is a necessary practice. This includes purchases of over-the-counter medications like ibuprofen and any other qualified medical expenses. The IRS requires account holders to keep sufficient documentation to demonstrate that distributions were exclusively for qualified medical expenses and had not been reimbursed from another source or taken as an itemized deduction.

Documentation includes detailed receipts, invoices, or other proof of purchase. These records should clearly indicate the date of purchase, the amount spent, and a description of the item or service. While physical records are acceptable, electronic records are also permitted and can simplify organization. These records are important for potential IRS verification in the event of an audit, ensuring that all HSA withdrawals are justified and tax-free.