When pollution levels are on the rise and air quality is a growing concern, many individuals are seeking air purifiers as a way to improve the air they breathe. However, during challenging economic periods, the cost of air purifiers often leaves many people contemplating whether they should invest in them. For those who have a Health Savings Account (HSA), the good news is that air purifiers may be eligible for HSA reimbursement. In this article, we will explore how air purifiers are HSA-eligible.

What Is an HSA?

Definition of HSA

According to HealthCare, a Health Savings Account (HSA) is a type of savings account that allows to set aside money on a pre-tax basis to pay for qualified medical expenses. HSAs offer tax advantages, as contributions to the account are tax-deductible, and withdrawals for qualified medical expenses are tax-free. Qualified medical expenses include:

• Deductibles
• Copayments
• Coinsurance
• Other healthcare-related costs

HSAs can be opened at certain financial institutions and can be funded by the individual, their employer, or even family members. 

How does an HSA work?

Opening an HSA requires enrollment in a High-Deductible Health Plan (HDHP). An HDHP is a type of health insurance plan that has a lower monthly premium but a higher deductible. The deductible is the amount you must pay out of pocket for your medical expenses before your insurance company starts to pay.

Once you have opened an HSA, you can start contributing to it. You can contribute to your HSA from your paycheck, your personal savings account, or even from your employer. The Internal Revenue Service (IRS) states that the maximum amount you can contribute to your HSA in 2023 is $3,850 if you have single coverage or $7,750 if you have family coverage.

Your contributions to your HSA grow tax-free. This means that you won’t have to pay taxes on the earnings of your HSA, even if you don’t withdraw them right away.

However, we note that contributions to an HSA can only be made in cash. The balance in an HSA is generally exempt from tax, and any amounts remaining at the end of the year are carried over to the next year.

Benefits of having an HSA

There are many benefits to having an HSA. These benefits include:

• Tax savings: HSA contributions are tax-deductible, which means they can lower your taxable income.
• Tax-free earnings: The earnings on your HSA grow tax-free.
• Tax-free withdrawals: You may withdraw funds from your HSA tax-free to pay for qualified medical expenses.
• No time limit on withdrawals: You can withdraw funds from your HSA at any time, even if you are no longer enrolled in an HDHP.
• Rollover feature: You can roll over unused HSA funds from year to year.
• Catch-up contributions: If you are 55 years of age or older, you have the opportunity to make additional contributions, known as catch-up contributions, to your (HSA)

Conditions of Air Purifiers HSA Eligible

When are air purifiers HSA eligible?

Air purifier HSA eligibility is based on the device’s medical necessity. Air purifiers may be eligible for reimbursement from certain HSA with a Letter of Medical Necessity (LMN). This is a formal document written by a licensed healthcare provider that explains why a specific medical treatment or service is necessary for a patient. To qualify, the air purifier must be primarily used to treat, diagnose, alleviate, or cure a medical condition or disease. The air purifier must not be purchased for any other purpose.

How can I make payment for an HSA-eligible air purifier?

You can refer to the following 5 steps to pay for an air purifier with HSA:

Step 1: Schedule a visit with the doctor who handles your respiratory condition.

Step 2: Discuss with them the benefits of better air quality for your health and whether you believe breathing air that has been cleaned with Molekule’s pollution-destroying PECO technology is the best option for you.

Step 3: Along with the LMN, they might also write a prescription for an air purifier. The LMN needs to have:

• Name of patient
• The precise diagnosis or course of therapy
• The course of treatment (no more than a year).
• The doctor’s signature

Step 4: Use your own money to purchase the air purifier and save the receipt.

Step 5: Use your online insurance site to submit an HSA expenditure claim for the air purifier. Both the LMN and the receipt are required.

HSA vs FSA Air Purifiers: Which is Right for You

Both HSAs and FSAs (Flexible Spending Accounts) can be used to pay for air purifiers. However, there are some key differences between the two accounts that you should consider before you decide which one is right for you.

The most suitable account for you is based on your specific financial situation and requirements. If you have a chronic condition that requires you to use air purifiers on a regular basis, an HSA may be a good option for you. This is because you can contribute more money to an HSA than you can to an FSA, and the money in your HSA can grow tax-free.

If you only need to use an air purifier occasionally, an FSA may be a better option for you. This is because you will not have to worry about losing money if you do not use up all of the money in your FSA by the end of the year.

Here is a table that summarizes the key differences between HSAs and FSAs:

Source: The Internal Revenue Service (IRS)

Frequently Asked Questions (FAQs)

1. Which kinds of air purifiers qualify for HSA?

Only air purifiers that are medically necessary to treat a specific condition are eligible for HSA reimbursement. This means that you will need to have a letter of medical necessity from your doctor in order to claim the cost of the air purifier on your HSA.

The Letter of Medical Necessity should state that you have a certain medical condition that requires the use of an air purifier, such as allergies, asthma, or COPD. It should also state that the air purifier is necessary to treat your condition and that it is not for general air cleaning purposes.

2. Is there a maximum amount I can spend from my HSA savings on an air purifier?

There is no maximum amount you can spend from your HSA savings on an air purifier, as long as you have a letter of medical necessity from your doctor. However, you will need to keep receipts for all of your air purifier purchases in order to claim reimbursement from your HSA.

3. Can I buy an air purifier for general air cleaning using HSA?

No, you cannot buy an air purifier for general air cleaning using HSA. Air purifiers are only eligible for HSA reimbursement if they are medically necessary to treat a specific condition.

4. I want to buy replacement filters for my air purifier, can I use my HSA for that?

Yes, you can use your HSA to buy replacement filters for your air purifier if the air purifier is medically necessary to treat a specific condition. You will need to keep receipts for all of your filter purchases in order to claim reimbursement from your HSA.

It is important to note that HSA rules and regulations are subject to change, so it is always best to check with your HSA administrator or tax advisor to make sure you are following the latest guidelines.

Conclusion

So, are air purifiers HSA eligible? Since air purifiers are classified as medical expenses, the answer is “yes”. With the benefits of an HSA, you can save a large amount of money. However, you need to pay attention to the regulatory conditions to be able to use HSA to buy an air purifier.