Daniel Stewart

Can I Purchase Medicated Shampoo with My HSA?

Medicated shampoos are a fantastic alternative to the standard grooming products you see lining grocery store shelves. While your garden-variety shampoo is fine for most people, those products can do more harm than good when dealing with specific medical problems.

In that case, you can view medicated shampoo as a form of treatment. But does that mean you can buy medicated shampoos with your HSA?

What is an HSA?

A health savings account (HSA) is a special tax-advantaged account solely for qualified medical expenses. You can open an HSA if you have a high-deductible health plan (HDHP) and have no other form of coverage. With an HSA, you can contribute a set amount of pre-tax dollars annually. Invest your HSA and continue to fund it for several years, and you can easily build a safety net for future medical expenses.

Not only are your contributions tax-free, but so is the interest you gain as your HSA grows. If you use your HSA for nothing but qualified medical expenses, withdrawals are also tax-free!

You can use this account for many different expenses. According to HSA account rules, that includes insurance deductibles, medical procedures, doctor visits, prescription drugs, etc. Master your HSA with ease. Click here to visit this website and navigate the essential HSA account rules - Your guide to tax-advantaged savings starts now.

Medicated Shampoo and HSA Coverage

You can't purchase standard shampoo with your HSA. However, medicated shampoos may fall under the umbrella of qualified medical expenses.

Medicated shampoos can contain powerful ingredients not found in standard products. For example, you can get shampoos with antifungal agents, retinoids, salicylic acid and more. These ingredients combat issues like infection, eczema, lice, dandruff and other health concerns.

While health care providers can recommend prescription shampoos, many medicated shampoos are available over the counter. So when can you use an HSA on medicated shampoos?

HSA account rules state that you can use your HSA for prescriptions. Therefore, any shampoos prescribed to you by your doctor qualify. But you'll need a Letter of Medical Necessity (LMN) for over-the-counter medicated shampoos. An LMN is a doctor's document confirming your need for specific products. Typically, you must provide the LMN to your HSA administrator before you can use your HSA funds on the purchase.

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 investments blog.