Can I pay for health insurance premiums tax-free with my HSA funds?

Typically, you can't pay for premiums with your HSA but there are four exceptions to this rule. 

The accountholder can pay health insurance premiums from the HSA if the accountholder is:

  1. Receiving federal or state unemployment benefits.
  2. Has health insurance that is continuing coverage under COBRA.
  3. Paying for coverage for a IRS-qualified long-term care plan (See IRS Publication 502).
  4. Paying for Medicare premiums once the accountholder is age 65 or older.

Source: "Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans.”

Was this article helpful?
1 out of 1 found this helpful