How I Invest My Health Savings Account

When Morningstar introduced a high-deductible healthcare plan with a health savings account alongside the traditional healthcare plan about a decade ago, some of my colleagues were skeptical. Even though the company provided generous incentives for selecting the high-deductible healthcare plan, they worried about shouldering the higher out-of-pocket costs that are part and parcel of high-deductible healthcare coverage. Heck, “high deductible” is right in the name! read more

Can I Use My HSA for Headache Medicine?

So you've opened one of the best HSA accounts on the market and made contributions to start saving for healthcare expenses. What can you use your health savings account (HSA) for?

These unique savings accounts are purpose-built to help you manage the cost of healthcare. They're tax-advantaged and can grow with you over time. Everything you put into the account is tax-deductible, and distributions for qualified medical expenses are tax-free. Even the interest you earn from investing in your HSA is tax-deferred.

There's a lot to gain from opening an HSA, but you don't have to wait to use it. While many people don't touch these accounts as they grow, you can start using them to reap the tax rewards. But what kinds of products can you pay for with your HSA?

Paying for Over-the-Counter Products

It's not just doctor visits and ER bills that count as qualified medical expenses. Several over-the-counter products apply, too. One common item many rely on to stay comfortable is headache medicine. There's no shortage of pain relievers like Tylenol, Ibuprofen, Advil or Excedrin to reduce symptoms and get relief.

All of those products are qualified medical expenses. You can use your HSA for headache medicine. But that's not all.

You can also use your HSA to pay for items like Epsom salts and heating pads to address bodily pain. It also covers allergy medicine, menstrual products and more!

How Do You Use an HSA for Over-the-Counter Products?

Utilizing your HSA for products at the drugstore is easier than you think. Many big-name pharmacy stores now label HSA- and FSA-eligible goods. Even online retailers have dedicated HSA and FSA stores, allowing you to find the products you need without worrying about documentation or approval.

When you pay for qualified products like headache medicine, you can use your HSA debit card like any other payment method. The best HSA accounts typically provide an easy-to-use card. When used, the funds will come out of your HSA directly. If you don't have an HSA debit card, you can request reimbursement from your provider with a receipt.

Read a similar article about HDHP strategy here at this page.