Does HSA Cover Contact Lenses and Other Vision Care?

A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals cover qualified medical expenses. These accounts are generally available to those enrolled in a high-deductible health plan (HDHP). The funds contributed to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for eligible healthcare costs. This article will clarify how HSA funds can be utilized for vision care, including specific expenses like contact lenses and related products.

Understanding HSA-Eligible Vision Expenses

Contact lenses are considered an HSA-eligible medical expense, as they fall under the IRS’s broad definition of medical care. The Internal Revenue Service (IRS) defines medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body. This includes items and services necessary for vision correction and eye health, such as prescription contact lenses.

Beyond contact lenses, other vision-related expenses also qualify:
Contact lens solutions and related care products, such as cleaning solutions and rewetting drops.
Eye exams for the diagnosis, treatment, or prevention of eye diseases or conditions.
Prescription eyeglasses, including both frames and lenses.
Medically necessary procedures, such as LASIK eye surgery, if they treat a vision condition.

However, some items are not typically covered, such as cosmetic procedures, non-prescription sunglasses, or extended warranties for glasses.

Accessing Your HSA Funds for Vision Care

Using your HSA funds for vision care requires careful record-keeping to ensure compliance with IRS regulations. Detailed records must demonstrate that HSA distributions were used for qualified medical expenses. This documentation should include itemized receipts showing the date of service or purchase, a clear description of the item or service (e.g., “contact lenses,” “eye exam”), and the amount paid. If applicable, an Explanation of Benefits (EOB) from your insurance provider and any relevant prescriptions for contact lenses or eyeglasses should also be retained. These records are important in case of an IRS audit, as account holders can face penalties if they cannot prove eligibility.

There are two primary methods for accessing HSA funds for vision care. One method is direct payment using an HSA-linked debit card at the point of sale. This allows for immediate payment at optometrists’ offices, optical shops, or online retailers that accept the card.

The other method involves paying out-of-pocket and then seeking reimbursement from your HSA administrator. To do this, you would gather your necessary records and submit a claim to your HSA provider, who then transfers the funds to your personal bank account. This reimbursement can occur even years after the expense was incurred, provided the HSA was established at the time of the expense. Consult your specific HSA administrator for their procedures and required forms.