Can an individual use HSA funds to pay insurance premium expenses?

Some insurance premiums are considered qualified medical expenses. An individual can make a qualified HSA distribution for the following insurance premiums:

  • Health plan coverage while receiving federal or state unemployment benefits.
  • COBRA premiums.
  • Medicare premiums (Part A, B, C or D. Not Medicare supplement or Medigap plans).
  • Premiums for qualified, long term care insurance (dollar limits may apply).

An individual is allowed to spend the money in their HSA for any reason, but if the funds are used for anything other than a qualified medical expense, the funds are subject to normal income tax, and if the accountholder is under age 65, a 20 percent penalty.

Introducing UMB HSA Saver

UMB HSA Saver is a unique investment platform designed with ease in mind. Account holders can easily research, buy and sell funds with a couple clicks.

How to Use ReceiptVault

HSAs are available to help pay for current qualified medical expenses as well as to save for future expenses, all in a tax-exempt account.

Take the guesswork out of HSA Administration

The UMB HSA empowers you with robust analytics, reporting tools and the communication support you'd expect from a top 10 HSA custodian