Qualified medical expenses (QME)

  • Ambulance
    Ambulance
  • Body Scans
    Body Scans
  • Dental
    Dental
  • Nursing
    Nursing
  • Optomestrist
    Optometrist
  • Prescriptions
    Prescriptions

Discover the many uses for your HSA or FSA

Qualified medical expenses are designated by the IRS. They include medical, dental, vision and prescription expenses.

See IRS publication 502 for a list of specific examples.

Common qualified medical expenses include:

  • Acupuncture
  • Alcoholism (rehab)
  • Ambulance
  • Amounts not covered under another health plan
  • Annual physical examination
  • Artificial limbs/teeth
  • Birth control pills/prescription contraceptives
  • Body scans
  • Post-mastectomy breast reconstruction surgery
  • Chiropractor
  • Contact lenses
  • Crutches
  • Dental treatments
  • Eyeglasses/eye surgery
  • Hearing aids
  • Long-term care expenses
  • Medicines (prescribed)
  • Nursing home medical care
  • Nursing services
  • Optometrist
  • Orthodontia
  • Oxygen
  • Stop-smoking programs
  • Surgery, other than unncessary cosmetic surgery
  • Telephone equipment for the hearing-impaired
  • Therapy
  • Transplants
  • Weight-loss program (prescribed)
  • Wheelchairs
  • Wigs (prescribed)

Non-qualified medical expenses

There are tax penalties for using HSA or FSA funds for non-qualified expenses. Keep all itemized receipts and copies of prescriptions for over-the-counter medications in case of an IRS audit.

Some non-qualified medical expenses include:

  • Concierge services
  • Dancing lessons
  • Diaper service
  • Elective cosmetic surgery
  • Electrolysis comsetic surgery
  • Electrolysis or hair removal
  • Funeral expenses
  • Future medical care
  • Hair transplants
  • Health club dues
  • Insurance premiums*
  • Medicines and drugs from other countries
  • Over-the-counter medicines*
  • Nutritional supplements*
  • Teeth whitening

* Some exceptions may apply


Over-the-counter medication

Over-the-counter medication

The IRS does not allow HSA or FSA funds to be used for over-the-counter (OTC) medicines without a prescription. We encourage you to ask your doctor if he or she can write a prescription for OTC medicines or supplies that you frequently need to utilize. Then, you can use your HSA to pay for these items.