Does Your HSA Cover Feminine Products?
Optimize your Health Savings Account for feminine care purchases. Understand current eligibility and financial advantages.
A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals cover qualified medical expenses. These accounts are typically available to those enrolled in a high-deductible health plan. Contributions to an HSA are made with pre-tax dollars, allowing the funds to grow tax-free and be used for eligible healthcare costs without federal income tax.
Eligible Feminine Care Products
Feminine care products are considered eligible expenses for Health Savings Accounts. These items are recognized as qualified medical expenses because they are used for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body, specifically relating to menstrual health.
Specific examples of eligible feminine care products include tampons, sanitary pads, panty liners, and menstrual cups. Other qualifying products include menstrual sponges, period underwear, and reusable cloth pads. These products are now fully eligible without requiring a prescription.
Not all products marketed for “feminine hygiene” are eligible. Products like general hygiene wipes, deodorants, or washes not specifically for managing menstrual care are not covered. Eligibility is restricted to items primarily intended for use during the menstrual cycle to address menstrual health needs.
How to Use Your HSA for Purchases
Many HSA providers issue a dedicated debit card, which functions like a regular bank debit card. This card can be used directly at the point of sale, in a physical store or online, to pay for qualifying purchases.
Alternatively, pay for the products out-of-pocket using your personal funds, a credit card or cash. After purchase, submit a claim to your HSA administrator for reimbursement. Reimbursement can be facilitated through online portals, direct transfers to your bank account, or by requesting a check.
Retain all receipts and detailed documentation for every purchase made with your HSA funds, or for which you seek reimbursement. These records serve as proof that the expenses were qualified medical costs. Your HSA administrator or the Internal Revenue Service (IRS) may request this documentation for substantiation, particularly during an audit.
The Legislative Change
The eligibility of feminine care products for HSA coverage is a recent development, stemming from significant legislative action. Prior to March 2020, these products were not recognized as qualified medical expenses by the IRS. Consumers were unable to use their tax-advantaged health accounts for these essential items.
This changed with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. This bipartisan legislation included a provision that specifically designated menstrual care products as eligible medical expenses. The change also retroactively applied to purchases made on or after January 1, 2020.
The CARES Act effectively removed previous restrictions that had classified these products as non-medical or general hygiene items. This legislative update allows individuals to use their HSA funds to purchase feminine care products, which are now considered tax-deductible when acquired with these pre-tax savings.