Does HSA Cover LASIK Eye Surgery?

A Health Savings Account (HSA) is a tax-advantaged savings account for qualified medical expenses, typically available to those with a high-deductible health plan (HDHP). LASIK eye surgery is a common procedure that reshapes the cornea to correct vision problems, reducing the need for glasses or contacts.

LASIK as an Eligible HSA Expense

LASIK eye surgery is considered a qualified medical expense by the Internal Revenue Service (IRS), making it eligible for HSA funds. This eligibility extends to other laser vision correction procedures like SMILE and PRK. The IRS defines qualified medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any body structure or function.

LASIK falls under this definition because it corrects refractive errors, which are recognized medical conditions affecting vision. Unlike purely cosmetic procedures, LASIK addresses a functional impairment of the eye.

Contributions to an HSA are pre-tax or tax-deductible. Funds grow tax-deferred, and withdrawals for qualified medical expenses, such as LASIK, are tax-free. This “triple tax advantage” makes HSAs a beneficial tool for managing healthcare costs.

Accessing Your HSA Funds for LASIK

You can use an HSA-linked debit card directly at the time of service. Many HSA providers issue these cards for immediate payment to healthcare providers.

Alternatively, pay for LASIK out-of-pocket and then reimburse yourself from your HSA. This offers flexibility, especially if you want your HSA funds to grow. There is no time limit for reimbursement, provided the HSA was established when the expense was incurred.

For reimbursement, keep detailed receipts and itemized bills from the LASIK provider for tax purposes. Some HSA custodians also offer direct payment to providers through online bill pay services.

Important Considerations for HSA Use

While HSAs offer a financial advantage for LASIK, consider the average cost, which can range from $1,500 to $5,000 per eye, often averaging around $4,492 for both eyes. Annual HSA contribution limits ($4,300 for individuals and $8,550 for families in 2025) may not fully cover the cost. You might need to combine HSA funds with other payment methods or save across multiple years.

Maintain thorough records for all HSA transactions, especially for substantial expenses like LASIK. While HSA administrators do not verify each withdrawal, you are responsible for proving withdrawals were for qualified medical expenses if audited by the IRS. Keep receipts and explanations of benefits (EOBs) for at least seven years.

Before proceeding, consult your HSA administrator about any unique rules or procedures for large medical expenses. Understanding your plan’s specific guidelines ensures a smooth process and maximizes tax benefits when using your HSA for LASIK.