Can you use HSA funds to pay for Cobra?

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  • #4833
    geb99
    Participant

    Can you use HSA funds to pay for Cobra?
    Publication 969 says:
    You can’t treat insurance premiums as qualified medical expenses unless the premiums are for:
    2. Health care continuation coverage (such as coverage under COBRA).
    But my HSA administrator does not list Cobra as one of the reasons for withdrawing funds.
    Can I simply contribute funds on one day and withdraw them the next day for all of the Cobra payments that I have made during the year?

    #4838
    kaneohe
    Participant

    For the real answer consider posting your question in the retirement forum
    here and look for a reply by Alan S.

    My impression is the same as you found in the Pub………..that COBRA is covered. You might want to contact your HSA folks to see why COBRA is
    not listed…….may just be an oversight.

    I assume you’ve had the HSA all yr? since you can’t pay bill that were
    incurred before the HSA was started. I believe you can do in out day/out the next but if you can earn more in the HSA (tax free) than you can earn outside it, wouldn’t it be better to pay from some other source and pay
    yourself a little later?

    #4840
    geb99
    Participant

    Thanks for your feedback. I’ll try re-posting in the Retirement Forum. And, yes, I have considered not using the HSA funds to pay Cobra. I just wanted to make sure I understood my options, so that I was prepared to make a last minute move if I needed to.

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