Can You Use Your HSA for Probiotics?

A Health Savings Account (HSA) provides a tax-advantaged savings mechanism for covering healthcare expenses. Linked with high-deductible health plans, HSAs offer tax-deductible contributions, tax-free growth through investments, and tax-free withdrawals for qualified medical expenses. HSAs empower individuals to save for current and future healthcare costs while enjoying favorable tax treatment.

Understanding Qualified Medical Expenses

The Internal Revenue Service (IRS) defines qualified medical expenses that can be paid with HSA funds. These are costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This definition includes services and products intended to improve health due to a medical condition. Expenses for general health purposes, cosmetic procedures, or items merely beneficial for overall well-being without addressing a specific medical issue typically do not qualify.

Guidance on qualified medical expenses is detailed in IRS Publication 502, “Medical and Dental Expenses.” This publication clarifies that the expense must primarily be for the prevention or alleviation of a physical or mental defect or illness. The focus remains on medically necessary interventions rather than general wellness.

Probiotics as a Qualified Expense

Probiotics, when used for general health maintenance or as a dietary supplement for overall well-being, are typically not considered qualified medical expenses under HSA guidelines. IRS rules require an expense to be for the treatment or prevention of a specific medical condition. Therefore, taking probiotics solely to support a healthy gut biome without an underlying diagnosis would not qualify for HSA use.

However, probiotics can become a qualified medical expense if a licensed medical professional recommends or prescribes them to treat a specific diagnosed medical condition. Examples include Irritable Bowel Syndrome (IBS), Crohn’s disease, ulcerative colitis, or antibiotic-associated diarrhea. In these instances, the probiotic is viewed as a therapeutic intervention. The recommendation must clearly link the probiotic use to the treatment or mitigation of the patient’s specific illness.

Essential Documentation for Probiotics

Proper documentation is necessary to substantiate that probiotic purchases meet IRS requirements for qualified medical expenses. A crucial document is a “Letter of Medical Necessity” (LMN) or a formal prescription from a medical professional. This letter or prescription confirms the probiotic is being used to treat a specific medical condition, not for general health.

The LMN should clearly state the diagnosed medical condition for which the probiotic is recommended. It must also explain how the probiotic is intended to treat, mitigate, or prevent that illness. Specific details like recommended dosage and treatment duration should be included. In addition to the LMN, individuals must retain detailed receipts for all probiotic purchases, documenting the date, vendor, and cost.

Using Your HSA for Probiotic Purchases

Once necessary documentation, such as a Letter of Medical Necessity or prescription, has been secured, individuals can use their HSA funds for probiotic purchases. Two primary methods exist for utilizing HSA funds. One method involves using an HSA debit card directly at the time of purchase, functioning much like a regular debit card.

Alternatively, individuals can pay for probiotics out-of-pocket and then reimburse themselves from their HSA. This process involves submitting a claim to the HSA custodian for the amount spent, typically through an online portal or by mail. Regardless of the payment method, maintaining meticulous records is essential. The burden of proof for qualified medical expenses rests with the account holder during an IRS audit. HSA custodians do not typically require documentation at withdrawal, but these records must be readily available if requested by the IRS.