Does an HSA Cover Birth Control?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. Many individuals wonder if these accounts can be used to cover the costs associated with birth control. This article clarifies the eligibility of various birth control methods for HSA reimbursement.

HSA Basics and Qualified Medical Expenses

A Health Savings Account is a savings account specifically designed for healthcare expenses, available to individuals enrolled in a high-deductible health plan (HDHP). Contributions to an HSA are tax-deductible, funds 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 costs.

The Internal Revenue Service (IRS) defines “qualified medical expenses” as costs primarily incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body. This broad definition includes medical care, dental care, vision care, and prescription drugs. The IRS outlines eligible expenses in publications such as IRS Publication 502.

HSA Eligibility for Birth Control

Birth control, when prescribed by a healthcare provider for medical purposes, is considered a qualified medical expense eligible for HSA reimbursement. This includes instances where birth control is used for pregnancy prevention or to treat specific medical conditions. The expense must be primarily for the prevention or alleviation of a physical or mental defect or illness.

For over-the-counter (OTC) birth control products, many no longer require a prescription to be HSA-eligible following the CARES Act of 2020. This means items like condoms and spermicides can be purchased with HSA funds without a doctor’s note. However, for prescription-only birth control methods, a valid prescription remains necessary for eligibility.

Covered Birth Control Methods

A wide array of birth control methods are eligible for HSA reimbursement. This includes various prescription hormonal contraceptives such as oral birth control pills, contraceptive patches, and vaginal rings. Intrauterine Devices (IUDs), which can be hormonal or non-hormonal, are also covered.

Other eligible methods include contraceptive injections, implants like Nexplanon, and barrier methods such as diaphragms and cervical caps when prescribed. Emergency contraception, such as Plan B, is HSA-eligible. Permanent contraception procedures like vasectomies for men and tubal ligations for women are considered qualified medical expenses.

Using Your HSA Funds for Birth Control

Utilizing HSA funds for eligible birth control expenses can be done in a few ways. Many HSA providers issue a debit card linked directly to the account, which can be used at pharmacies or clinics to pay for eligible items at the point of sale. This offers immediate access to your funds.

Alternatively, you can pay for the eligible expense out-of-pocket using personal funds and then reimburse yourself from your HSA. When opting for reimbursement, maintain records, including itemized receipts and prescriptions, to demonstrate the expense was qualified. These documents are important for tax purposes and in case of an IRS audit.