According to the Internal Revenue Service (IRS), HSAs can be used to pay for:
- Eligible medical expenses
- Health insurance premiums under COBRA continuation coverage
- Health insurance premiums while receiving unemployment compensation
- Medicare Parts A, B, C & D premiums (for those ages 65 or older only)
- A qualified long term care insurance contract
Eligible medical expenses for HSAs are defined in Section 213(d) of the Internal Revenue Code. A complete list is available from the IRS in Publication 502 (Medical and Dental Expenses) by visiting www.irs.gov or by calling (800) 829-3676.