Can I Buy CBD Oil With My Hsa Account


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Pure Craft CBD offers CBD Oil 1000mg & 2000mg flavored CBD tinctures, CBD Gummy Bears, CBD Oil for Dogs and more! Discover Pure Craft CBD PURE CRAFT BLOG Can you pay for CBD oil with an HSA? Are you wondering if you can pay for CBD oil with a health savings account (HSA), flexible spending account (FSA), or health reimbursement arrangement (HRA)?

Can I Use My FSA Money To Buy CBD?

Can you use FSA money to buy CBD? Indeed, CBD is a hot topic for many people — especially those who have been diagnosed with conditions like chronic pain, arthritis, anxiety, insomnia, and more.

CBD’s legal landscape is a complex one, and the IRS has not weighed in with its own guidelines. What does this mean for FSA eligibility?

Let’s take a look at whether you can use FSA funds to purchase your CBD drops, CBD softgels, CBD gummies, CBD creams, or any other form of CBD.

Oh yeah, the scope of this post is just FSA money and just personal-use CBD. Other kinds of spending accounts — like HSAs — may qualify certain CBD purchases — like doctor-prescribed medical CBD.

What’s A Flexible Spending Account (FSA)?

First, an overview of Flexible Spending Accounts: FSAs are employer-sponsored accounts that allow employees to set aside pre-tax income to cover medical expenses.

An FSA allows you to put aside up to $2,750 a year (as of 2021) to cover the cost of things like copays, prescription drugs, and other qualified medical expenses.

This is a powerful type of account because you don’t have to pay any taxes on this money! You just tell your employer how much you want deducted from your paycheck (pre-tax) each payroll period, and it gets placed into the account for you to use later.

Pros of FSAs

There are definitely some great things about FSAs:

  • Tax-free funds
  • You can choose how much to contribute (up to $2,750)
  • No need to file extra forms during tax time
  • Covers a wide range of medical expenses

Cons of FSAs

There are also some things to consider about FSAs:

  • It’s a “use-it-or-lose-it” type of account: Meaning any leftover funds are returned to your employer at the end of the year (or grace period).
  • Mainly employee funded: Employers are less likely to contribute to an FSA (as opposed to an HSA or HRA).
  • FSA funds only cover eligible expenses.

What Products Are FSA Eligible?

We mentioned that a con of FSA funds is that they can only be used for eligible expenses.

It’s true. There is a range of qualified expenses, but it’s not always easy to figure out what your FSA will cover.

The IRS defines “medical expenses” in Section 213 of the Internal Revenue Code: “Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.”(1)

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Some of the most common types of expenses you might use an FSA for:

  • Doctor visits
  • Prescription drugs
  • Lab work
  • Dental services
  • Vision care
  • Diagnostic products
  • Home health items

So where does CBD fall under all this?

What’s CBD?

First a little primer on CBD.

CBD (aka cannabidiol) is a cannabinoid. It’s a plant compound that can be derived from both the marijuana and hemp strains of the cannabis plant.

It’s gained a reputation among scientists and the general population for having pain reducing, stress relieving, and wellness boosting qualities.

CBD Uses

Given its many health and wellness properties, CBD’s often used to help address symptoms common to conditions like:

  • Anxiety
  • Arthritis
  • Chronic pain
  • Epilepsy
  • Insomnia
  • Nausea

CBD isn’t an FDA-approved drug. But it’s a federally-legal, natural substance that many people are turning to for relief.

As always, though, consult with your doctor before making any changes to your treatment plan.

Different Kinds Of CBD Products Available

You can find CBD products in a variety of forms, which makes it easy to find one that works for you.

CBD can be found as:

There’s no shortage of CBD products to choose from!

Finding CBD Near You

CBD can be found across various stores, in person and online. You can find it in health and wellness shops, dispensaries, and even gas stations. Online, just search for “Best CBD Oil” and you’ll find a variety of CBD products to purchase.

Just be sure to do some research to ensure the purity and quality of the products that you purchase.

CBD Laws

CBD laws can be a little confusing, but here is some general information surrounding CBD legality.

CBD is 100% federally legal across as long as it is:

  • Derived from hemp
  • Contains no more than 0.03% THC content

State laws may differ from federal regulation, though. Some states have more lenient laws around CBD and even cannabis. Others have more stringent statutes. Others still don’t especially articulate CBD rules and sort of just defer to the federal laws.

Visit our page Is CBD Legal in the United States? (CBD Laws)for more information.

Is CBD An FSA-Eligible Expense?

So can you buy CBD with your FSA funds?

The short answer is no.

CBD products — like CBD oil and CBD creams — are not eligible for FSA reimbursement. Right now.

The longer answer is probably not, but it’s not 100% clear. The reason is: IRS guidance dictates eligible use of funds in the FSA. And the IRS has not given any guidance around CBD yet. This leaves CBD in a bit of a gray area.

If you try to buy CBD with your FSA money, you’ll likely be asked to repay the funds.

However — seems like there’s always a “but” — laws and the cultural norms that influence them are ever-evolving. For example, in 2022 you’ll be allowed to use HSA (health savings account — one of FSA’s cousins) for CBD and hemp oil products prescribed by a doctor for a diagnosed medical condition.(2) There’s hope for FSA+CBD!

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Alternative Ways To Pay For CBD

While the FSA may be a no-go today, there are other ways to pay for CBD and even save money like:

  • Subscribe and save programs
  • Paying in installments
  • Using credit cards that get you points

Check out our blogs Smartest Ways To Pay For CBD and Making CBD More Affordable for more tips on how to save the most on your CBD products.

Buying CBD With Your FSA? Probably Not…

CBD is an immensely popular product that many people use to manage their health conditions and boost their overall wellness. If you have an FSA, you may be wondering if CBD counts as one of the “medical expenses” you can use your funds for.

Unfortunately, the answer is not likely. Products like CBD oil and CBD gummies are likely not eligible for FSA, as the IRS has not set any guidelines around CBD.

Although your FSA money probably can’t be used to buy CBD products, it’s always a good idea to check in with your HR and benefits department to double check. They may have other programs to offer. And the laws and regulations may change over time.

Plus, there are many other ways to save on CBD, so be sure to check out those options, too.

Can you pay for CBD oil with an HSA?

Are you wondering if you can pay for CBD oil with a health savings account (HSA), flexible spending account (FSA), or health reimbursement arrangement (HRA)? You may also be wondering if this item is eligible or ineligible for reimbursement with your HSA, FSA, or HRA.

No, unfortunately you can’t use your HSA, FSA, or HRA to pay for CBD oil. In fact, if you do pay for CBD oil with one of those accounts, you may be subject to a penalty.

HSA fast facts

  • Health savings accounts (HSAs) were created as part of the Medicare Prescription Drug, Improvement, and Modernization Act, or MMA, signed into law by President George W. Bush on December 8, 2003. The MMA was the largest overhaul to Medicare in the program’s history.
  • HSAs are only available as part of a high-deductible health insurance plan (HDHP).
  • As part of the 2020 CARES Act, over-the-counter medications and menstrual care products became eligible for purchase with an HSA.
  • Contributions to an HSA can be made by an employer and/or employee on a pre-tax basis. You can find current and historical HSA contribution limits on this site.
  • Funds in a health savings account can be invested in a similar way as other retirement accounts and are a rare example of an account that’s triple tax advantaged. That is, funds are contributed pre-tax, can be withdrawn for eligible medical expenses without taxation, and if you invest the funds within your HSA the earnings or interest are tax free. There are also many other benefits of HSAs that you may not know about.
  • Funds can be withdrawn at any time for any reason, but funds withdrawn for non-approved medical expenses before the age of 65 are subject to income taxes and an additional penalty.
  • You can no longer contribute to an HSA once you’re enrolled in Medicare.
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Explore HSA eligibility for other products and services

Common HSA providers

What about FSA and HRA eligibility?

The same HSA eligibility status for CBD oil applies to flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) as well.


Coming up with accurate eligibility status for the list of HSA eligible expenses can be a challenge at times. The IRS only provides a partial list of eligible expenses, so consumers and even insurance companies are left to wonder exactly what products are eligible.

To help illustrate this point, I had a visitor email me to ask if regenerative medicine such as platelet rich plasma (PRP) and stem cell treatments are HSA eligible. I did extensive research and the answer pointed toward “probably not but check with your provider to see if they’ll cover it.” So I suggested that he consult them for guidance. His response was that he did and even they didn’t know!

In a case like that, I would suggest getting a definitive answer in writing from your provider. If you can’t get one, the safe choice is to assume it’s not eligible and not expense it.

There are also cases where one source says an expense is eligible and another says it’s not. In those cases I do my best to research the expense further and come up with an answer that seems most likely for the greatest number of providers.

At any rate, these are the primary sources I use for expense verification. Keep in mind this is not an exhaustive list, and I will frequently check product manufacturer websites for eligibility statuses, as they often will have done their own due diligence if they suspect people may want to use their HSA or FSA to pay for their products and they fall into the uncertain category.

    – IRS – IRS – U.S. Congress – Wikipedia


This page is intended to be an educational reference only. Please check with your HSA administrator or health insurance provider to confirm if you can pay for CBD oil with your HSA card before making any purchases.

A good rule of thumb is that if your doctor diagnosed you with a specific medical condition or ordered a treatment, product, or prescription specifically for you, your health savings account should cover it. Sometimes your HSA will even cover items that it normally wouldn’t if you have a letter of medical necessity signed by your doctor. Again, you should check with your HSA administrator before any purchase if you have any questions about an item being eligible or ineligible.

© 2022 is the internet’s first and only complete list of HSA-eligible and ineligible expenses.

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