The Supreme Court recently put the power of abortion rights in states’ hands. This change had been a significant point of controversy in American politics and created an air of confusion about this procedure. While access to abortions has changed, what about HSA eligibility?
A health savings account (HSA) is a fantastic way to prepare for unexpected medical expenses like the cost of an abortion. Before the landmark Supreme Court decision, women could use their HSA to pay for the procedure. But what about now?
Fortunately, the decisions made in the Dobbs v. Jackson Women’s Health case didn’t change the procedure’s status as an eligible expense. It’s still considered a qualifying medical expense in the eyes of the IRS. You can use an HSA, FSA, or HRA to pay for an abortion.
HSAs work differently than standard savings accounts. When you contribute to a savings account at your local bank, you’re putting money aside for anything. However, HSAs have strict limitations on what you can use the funds for and how much you can contribute.
Those restrictions exist because of the many tax advantages HSAs offer. These accounts are triple-tax advantaged, allowing you to experience significant savings. Contributions are tax-deductible, the growth of the money in an HSA is tax-deferred, and you’re allowed to spend tax-free funds on qualifying expenses.
The list of qualifying expenses is expansive. What purchases count as HSA eligible expenses are entirely up to the IRS. Generally, the list includes any cost that falls under the umbrella of medical care.
The most obvious uses of an HSA apply to direct medical care. For example, you can use it to pay for doctor visits, hospital stays, medical procedures, etc. Many individuals use HSAs to pay insurance deductibles.
Abortions are a medical procedure. Despite the controversy surrounding it, it’s a procedure that only qualified medical professionals can perform. Therefore, you can use an HSA to pay for it.
HSAs also cover health products you buy at your local grocery store. You can use the account to pay for feminine hygiene products, birth control, condoms, contraceptives, and more.
Author Resource:-
Daniel Stewart has been helping people with their money management and personal finance with over 15 years’ experience in business finance. You can find his thoughts at savings guide blog.
