As the marketplace begins to discover the complementary nature of private medicine and consumer directed health plans, it will be important for private physicians to understand the ins and outs of HSAs.

The following lists provide a brief summary of the information described in IRS Publication 502. The lists are intended to serve as a quick reference to help determine whether or not an expense may be eligible for HSA reimbursement. This information is provided with the understanding that AAPP is not providing tax advice. IRS Publication 502 can be found online at www.irs.gov or ordered from the IRS by calling 1-800-TAX-FORM.

Qualified Medical Expenses Eligible For Reimbursement

• Acupuncture
• Alcoholism treatment
• Ambulance services
• Anesthesia
• Artificial limbs
• Birth control pills (by prescription)
• Blood tests
• Braces
• Cardiographs
• Chiropractic services
• Contact lenses
• Contraceptive devices
• Crutches
• Dental treatments
• Dental x-rays
• Dentures
• Diagnostic services
• Drug addiction therapy
• Eyeglasses
• Hearing aids and batteries
• Hospital services
• Insulin
• Lab tests
• Optician services
• Oral surgery
• Organ transplants (including donor’s expenses)
• Orthopedic shoes
• Oxygen and oxygen equipment
• Physician services
• Physiotherapist
• Postnatal treatments
• Prenatal care
• Prescription medicines
• Psychiatric services
• Psychotherapy
• Splints
• Sterilization
• Surgery
• Therapy equipment
• Vaccines
• Vasectomy
• Vitamins (if prescribed)
• Wheelchairs
• X-rays

Expenses Not Eligible For Reimbursement

• Advance payment for services to be rendered next year
• Athletic club membership
• Boarding school fees
• Bottled water
• Commuting expenses of a disabled person
• Cosmetic surgery and procedures
• Cosmetics, hygiene products and
similar items
• Diaper service
• Domestic help
• Funeral, cremation or burial expenses
• Health programs offered by resort
• Hotels, health clubs and gyms
• Illegal operations and treatments
• Illegally procured drugs
• Maternity clothes
• Premiums for life insurance, income 
protection, disability, loss of limbs,
sight or similar benefits
• Scientology counseling
• Social activities
• Special foods or beverages
• Specially designed car for handicapped
other than autoette or special equipment
• Stop smoking programs
• Swimming pool
• Travel for general health improvement
• Tuition and travel expenses for sending 
a problem child to a particular school
• Vitamins (non-prescription)
• Weight loss programs (e.g., Weight Watchers)