Which of the following costs qualifies as a medical expense for HSAs?

The correct choice relates to costs for medical care covered under Section 213(d) of the Internal Revenue Code, which provides a detailed definition of what constitutes qualified medical expenses for Health Savings Accounts (HSAs). This section outlines various types of expenses that can be reimbursed or paid for with HSA funds, encompassing a wide range of medical care such as payments for diagnosis, cure, mitigation, treatment, or prevention of disease. It also includes costs for certain medical equipment and prescribed medications, highlighting a comprehensive approach that safeguards individuals’ health expenditures.

Items categorized under this section ensure that HSA distributions remain tax-free when used for legitimate medical expenses, aligning with the purpose of HSAs as a means for individuals to save for health-related costs while receiving tax benefits.

In contrast, costs for cosmetic surgery typically do not qualify unless they are medically necessary. Medical expenses not covered by insurance can sometimes be qualified, but it depends on the nature of the expenses rather than a blanket determination. Over-the-counter medications have more restrictions, requiring a prescription to qualify, due to regulatory changes impacting their reimbursement status under HSAs.

Thus, the choice that specifies costs for medical care covered under Section 213(d) accurately captures the essence of eligible medical expenses for HSAs, ensuring