Qualified medical expenses

Q: Can I use my Health Savings Account (HSA) for over-the-counter (OTC) cough medicines?

A: This question gets to the heart of the coolest benefit from an HSA plan. The savings account portion is meant to cover the deductible expenses that you incur now that the deductible is much higher than a traditional indemnity plan. However, you are not limited to just insurance-covered items when using the savings account portion. There is a list issued by the provider of the HSA portion (bank, credit union, etc) of “Qualified Medical Expenses”. In general, these line up with the amounts that you can claim on Schedule A of your tax return each year. Over-the-counter medicines are covered in certain cases as well.

Here is the scenario: Let’s say you have contributed $750 to the savings account portion of the HSA plan. You have a debit card to Read more »