Can I use my HSA to pay for health insurance premiums?

In most cases, no—health insurance premiums are not considered qualified medical expenses and generally can’t be paid with HSA funds tax-free.

However, there are a few important exceptions where HSA funds can be used tax-free to pay for premiums:

✅ HSA-Eligible Premium Exceptions:

1. COBRA premiums

2. Health insurance while receiving unemployment benefits

3. Long-term care insurance premiums (subject to age-based limits)

4. Medicare premiums (excluding Medigap—see a separate FAQ if needed)

🧠 Important Note:

If you use HSA funds to pay for premiums that don’t fall into one of these exceptions, the withdrawal will be taxable and may be subject to a 20% penalty if you’re under age 65.