Can You Use Your HSA for LASIK Eye Surgery?

Health Savings Accounts (HSAs) are tax-advantaged savings mechanisms designed to help individuals cover qualified healthcare expenses. Many people wonder if specific medical procedures, such as LASIK eye surgery, qualify for these funds. This guide explores the criteria for using HSA funds, specifically addressing whether LASIK is an eligible expense.

Understanding Health Savings Accounts

Health Savings Accounts are personal savings accounts for healthcare costs. Contributions made to an HSA are tax-deductible, reducing your taxable income. The funds within the account grow tax-free, and withdrawals for qualified medical expenses are also tax-free. This triple tax advantage makes HSAs a valuable tool for managing healthcare finances.

To be eligible for an HSA, an individual must be enrolled in a High-Deductible Health Plan (HDHP). An HDHP features higher deductibles compared to traditional health insurance plans. For 2025, the minimum annual deductible for an HDHP is $1,650 for self-only coverage and $3,300 for family coverage. These plans also have a maximum out-of-pocket limit, which includes deductibles, co-payments, and co-insurance.

LASIK as a Qualified Medical Expense

LASIK (Laser-Assisted In Situ Keratomileusis) eye surgery is generally considered a qualified medical expense by the Internal Revenue Service (IRS). This procedure corrects vision impairments by reshaping the cornea. The IRS broadly defines medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any structure or function of the body.

LASIK is a medical procedure performed to alleviate defective vision. The expense must be primarily for medical care and not solely for cosmetic reasons. While LASIK is an elective surgery, it is recognized as a treatment for refractive errors that impair vision, such as nearsightedness, farsightedness, and astigmatism. Eye surgery, including LASIK, falls under the category of eligible vision-related expenses, aligning with IRS guidance for treatments affecting body function.

Accessing Your HSA Funds for LASIK

There are several methods for accessing your HSA funds to pay for LASIK. Many HSA providers issue a debit card specifically for this purpose. This card can be used directly at the eye clinic or medical facility at the time of service, much like a regular debit card. This direct payment method simplifies the process and immediately utilizes the tax-free funds.

Alternatively, individuals can pay for the LASIK procedure out-of-pocket using personal funds and then reimburse themselves from their HSA. This involves submitting a claim to the HSA administrator with proof of the expense. The reimbursement can be transferred to a personal bank account or issued via check. Any expense reimbursed from an HSA must have been incurred after the HSA was established.

Maintaining Proper Documentation

Maintaining thorough records for all HSA distributions is important, especially when paying for significant medical procedures like LASIK. While you are not typically required to submit these documents with your tax return, you must retain them in case of an IRS audit. The IRS can audit tax returns for several years.

Key documents to keep include receipts or invoices from the LASIK provider that detail the services received and the amount paid. If applicable, an Explanation of Benefits (EOB) from your health insurance company should also be retained, as it shows what your insurance covered and your remaining responsibility. This documentation serves as proof that withdrawals were used for qualified medical expenses, ensuring they remain tax-free and avoiding potential penalties.