Generally, HSA funds cannot be used to pay health insurance premiums. However, the IRS provides four specific exceptions where HSA funds may be used:
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When you are receiving federal or state unemployment benefits.
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To pay for health insurance premiums under COBRA continuation coverage.
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To pay for premiums on an IRS-qualified long-term care insurance plan (see IRS Publication 502).
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To pay for Medicare premiums once you are age 65 or older.
Outside of these exceptions, health insurance premiums are not considered a qualified medical expense.
Source: "Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans.”
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