Can I Use My HSA For My Pets? - GoodRx (2024)

Your pet is part of your family, so you want to make sure they always get the best care. But, just as with any other family member, getting healthcare for your pet can become expensive.

Unfortunately, you can’t use a health savings account (HSA) to pay for typical veterinary bills. But if you have a service animal because of a disability, you may use HSA funds to cover purchase, training, and maintenance expenses associated with the animal.

Can HSA funds be used for pets?

An HSA allows you to set aside pre-tax money to cover qualified medical expenses if you’re enrolled in a high-deductible health plan (HDHP). You must also meet other HSA requirements, which include the following:

• You aren’t claimed as a dependent on somebody else’s tax return.

• You don’t have Medicare

• You only have health coverage that’s allowed by the IRS.

If you qualify for an HSA, you can set one up on your own or enroll through your employer. You may then use the money to pay for items like medical bills, blood pressure monitors, flu shots, and reading glasses. But because regular veterinary bills aren’t medical expenses for you or eligible dependents, you can’t use your HSA for pets.

Do service animals qualify for HSA coverage?

If you or an eligible dependent has a disability, your HSA covers service animal expenses. According to the Americans with Disabilities Act (ADA), a person may be considered to have a disability if they:

• Have a physical or mental impairment that notably restricts at least one major life activity

• Have a history or record of an impairment

• Are observed by others as having an impairment

Not every condition that qualifies as a disability is listed by the ADA. But the Centers for Disease Control and Prevention (CDC) identify six types of disabilities: hearing, vision, cognition, mobility, self-care, and independent living.

Service animals are trained to perform tasks directly related to disabilities. A service animal is usually a dog. It can be any breed or size. And your service dog doesn’t have to be certified or undergo professional training — you may train the animal yourself. Also, your service dog doesn’t have to wear a vest or other identification indicating that they’re a service animal.

Here are some examples of how service animals assist people with disabilities:

• Guide dogs help blind and visually impaired people navigate their environments.

• Hearing dogs alert deaf and hard-of-hearing people to significant sounds.

• Mobility dogs help people with wheelchairs, walking devices, and balance issues.

• Medical alert dogs signal the onset of medical issues, such as seizures or low blood sugar levels.

• Psychiatric service dogs help people with obsessive-compulsive disorder, post-traumatic stress disorder, schizophrenia, and other conditions.

Qualifying for a service animal

To get a service dog, you need documentation from your healthcare provider stating that you’re being treated for a disorder or disability and need service dog assistance. The service animal must also be specifically trained for your condition. The IRS may require a letter of medical necessity (LOMN) to verify your service animal as a qualified medical expense if you use HSA funds for related costs.

Emotional support animals (ESA) are different from service animals. The ADA doesn’t recognize ESAs or therapy, comfort, and companion animals as service animals, because they aren’t trained for tasks associated with disabilities. The ADA also doesn’t classify working dogs — such as those in police K-9 units — as service animals. But there is an ADA provision that qualifies miniature horses to be service animals.

How can I use HSA coverage for my service animal?

A service dog can cost anywhere between $15,000 to $30,000, depending on the training it has had and type of service it provides. The price may go as high as $50,000 if you include the costs of breeding, raising, training, and placing the service animal. You can save money if you train the service dog yourself. Ongoing costs such as vet bills and food will likely be at least $500 a year.

As long as you have the money in your account, your HSA may pay for many service animal expenses, including the following:

• Purchase

• Training

• Food

• Grooming

• Veterinary care

If you have an HSA debit card you may be able to use it to pay for service animal expenses. Depending on your HSA administrator, you may also be able to write a check or make an online payment from your account. Otherwise, you can request reimbursem*nt from your HSA for service animal expenses you paid out of pocket.

You usually don’t have to provide documentation to get reimbursed from your HSA. But you must keep all your receipts and a record of your expenses for tax purposes. Also, there’s no deadline to submit reimbursem*nt for qualified medical expenses incurred while you have an HSA. So if you’ve had an HSA for three years and just discovered an eligible medical expense from the first year, you may still submit reimbursem*nt.

Is a pet health savings account right for me?

For normal pets, a veterinary visit involving a physical exam or consultation usually costs around $50, depending on your location. Other factors that affect the cost include:

• The facility you go to

• The kind of pet you have

• The type of service or treatment provided

• The state of your pet’s health

You might consider setting up a pet health savings account to budget for your pet’s healthcare needs. This can be a regular savings account that’s used solely for pet expenses. You can also check with your bank or credit union to see if they offer special benefits for pet savings accounts, such as discounts on insurance or higher interest rates. You set up a schedule to put money aside into the account, use the funds how you see fit, and earn interest from the account.

But there are a few downsides to this approach. Let’s say there’s an emergency or your pet has an ongoing medical issue. You may not have enough money in your pet savings account to cover the bills. Or you could be tempted to spend the money on something besides veterinary care.

You can also get pet insurance, which pays for eligible veterinary expenses. A monthly payment — the average is around $50 for dogs and $30 for cats — covers your pet for specific services. But some pet insurance plans don’t cover pre-existing conditions. And most of the time, you have to pay for veterinary services upfront and wait to get reimbursed later.

Combining a pet health savings account with pet insurance can cover current and future expenses. You may use your savings for routine and preventative care, then rely on insurance for higher and unexpected expenses.

Resources for saving on pet care

If you’re struggling to pay your pet’s healthcare costs, other resources may help.

• Temporary credit line: For example, CareCredit can be used for routine care, surgeries, and emergencies.

• Veterinary colleges: Many veterinary schools offer low-cost clinics and emergency services.

• Fundraising/crowdfunding: GoFundMe and Waggle are a couple of websites where pet owners in need can raise financial assistance.

• Prescription discounts: For example, GoodRx for Pets can help you find the lowest prices on pet medications.

• Payment plans: Your veterinarian may be willing to set up weekly or monthly payments.

• Organizations and charities: The Humane Society of the United States lists several groups offering nationwide assistance.

• Breed-specific rescue groups: Organizations such as CorgiAid and Labrador Lifeline may know how to get help for particular breeds.

You can also take preventative measures to help avoid expensive veterinary care. A few ways to maintain your pet’s health include regular vaccinations, annual wellness exams, teeth brushing, and flea and parasite protection.