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I'm wondering if it's possible to use a Health Savings Account (HSA) to cover the costs of Long Term Care Insurance. Can anyone provide some information on this? Thanks!
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Yes, it is possible to use a Health Savings Account (HSA) to pay for Long Term Care Insurance. HSAs are tax-advantaged accounts that allow individuals to save money for qualified medical expenses. While Long Term Care Insurance premiums are generally not considered qualified medical expenses, there is an exception for individuals who are considered chronically ill. According to the Internal Revenue Service (IRS), if you are chronically ill and your Long Term Care Insurance policy meets certain criteria, you may be able to use funds from your HSA to pay for the premiums. The criteria include having a licensed health care practitioner certify that you are unable to perform at least two activities of daily living (such as eating, bathing, dressing, etc.) without substantial assistance, or that you require substantial supervision due to a cognitive impairment. Additionally, the Long Term Care Insurance policy must be specifically designed to provide coverage for qualified long-term care services. It's important to note that the ability to use HSA funds for Long Term Care Insurance premiums may vary depending on the specific terms of your HSA and the Long Term Care Insurance policy. Therefore, it is recommended to consult with a tax professional or financial advisor to determine if this option is available to you.
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