Which of the following could be considered a qualifying medical expense covered by a Health Savings Account?

Which of the following could be considered a qualifying medical expense covered by a Health Savings Account?

• A. Retirement savings
• B. Gym memberships
• C. Prescription medications
• D. Education fees

Answer: (C)

A qualifying medical expense covered by a Health Savings Account (HSA) is one that is incurred for medical care and is deemed necessary for the diagnosis, cure, mitigation, treatment, or prevention of disease. Prescription medications are a prime example of such expenses. They are specifically recognized by the IRS as eligible medical expenses that can be paid for using HSA funds. This eligibility is based on the necessity of medications for maintaining health or treating medical conditions, which aligns directly with the purpose of HSAs. In contrast, retirement savings, gym memberships, and education fees do not typically qualify. Retirement savings are intended for long-term financial goals rather than immediate healthcare needs. Gym memberships may contribute to overall wellness but are not classified as essential medical expenses under HSA guidelines. Education fees are also unrelated to healthcare expenses, focusing instead on academic pursuits. Hence, prescription medications stand out as a direct, necessary medical expense eligible for coverage by a Health Savings Account.

A qualifying medical expense covered by a Health Savings Account (HSA) is one that is incurred for medical care and is deemed necessary for the diagnosis, cure, mitigation, treatment, or prevention of disease. Prescription medications are a prime example of such expenses. They are specifically recognized by the IRS as eligible medical expenses that can be paid for using HSA funds. This eligibility is based on the necessity of medications for maintaining health or treating medical conditions, which aligns directly with the purpose of HSAs.

In contrast, retirement savings, gym memberships, and education fees do not typically qualify. Retirement savings are intended for long-term financial goals rather than immediate healthcare needs. Gym memberships may contribute to overall wellness but are not classified as essential medical expenses under HSA guidelines. Education fees are also unrelated to healthcare expenses, focusing instead on academic pursuits. Hence, prescription medications stand out as a direct, necessary medical expense eligible for coverage by a Health Savings Account.