How To Get Liquid IV With Your HSA

Vitamins, supplements, and alternative therapies are medicine — the things you use to keep yourself well have a measurable impact on your health, even if they aren’t conventional medicine. Hydration is a crucial part of staying healthy, and the body needs electrolytes to maintain proper hydration levels. Liquid IV can help with that. 

Health savings accounts can be a little finicky with what they consider a health-related expense, but it’s easy to make Liquid IV fit the bill. Here’s how to get Liquid IV with your health savings account.

What Is an HSA?

An HSA allows you to purchase health and wellness-related products and services with pre-tax money. You’ll place a portion of your pre-tax income into a specially designated health savings account. You can use the funds in that account to purchase HSA-eligible items.

You can open up a HSA at your bank or credit union. Some insurance companies offer policyholders the option to open up an HSA account with them. The account works just like a normal bank account, with the exception that you’re not allowed to purchase items from that account that aren’t HSA eligible.

HSA accounts can accumulate interest just like a normal bank account. You can make as many deposits and withdrawals as you’d like. If you make a withdrawal from your HSA account and you don’t use it to make an eligible purchase or reimburse yourself for an eligible purchase, you’ll have to pay a 10% tax penalty for using tax-free income outside of its designated purpose.

How Does an HSA Work?

You’ll be issued an HSA debit card you can use to make purchases. You’re allowed to use HSA money to purchase (or reimburse yourself for purchasing) things relating to health and wellness. You can also withdraw cash from your HSA account to reimburse yourself for purchases or electronically transfer reimbursements to your personal bank account.

There’s a long list of products and services that are automatically eligible for HSA funds. Other products and services can be covered if you receive a Letter of Medical Necessity (LMN) from your doctor. 

HSA funds will, by default, cover the following:

• Doctor and prescription copays
• Over-the-counter medicines and pain relievers
• First aid products
• Sunscreen and sunburn relief products
• Over-the-counter medicated skincare or acne products
• Menstrual care products
• Pregnancy and lactation-related products and services
• Sexual health products 
• Necessary medical devices (like crutches, wheelchairs, and blood glucose meters)
• Modifications to make a home or vehicle disability accessible

HSA funds can cover more than just those things if your doctor is willing to write you a letter that states that a certain product or service is medically necessary for you. HSA funds can be used to cover things like vitamins, supplements, alternative medicine, hot tubs, saunas, gym memberships, and workout equipment with a doctor’s note. 

What Is Liquid IV?

Liquid IV is a flavored electrolyte powder that helps to boost the body’s hydration levels. When you sweat, you lose the electrolytes that your body needs to power your muscles and your heart. Dehydration or a hard workout can leave you with muscle soreness. Liquid IV is an over-the-counter water additive that replenishes your valuable electrolyte stores. 

The benefits of Liquid IV are pretty straightforward. You need to be getting a sufficient amount of water throughout the day, and water needs can increase with hot temperatures or exercise. Since water alone is only part of the equation, the addition of vital electrolytes creates a complete solution to your body’s needs. 

Liquid IV comes in many flavors, including sugar-free varieties. There are probiotic variants, variants with sleep support ingredients, and even formulations for kids. Liquid IV is sold in multipacks of individual servings that are easy to take on the go, i.e. throwing them in your gym bag for your after-work gym session. 

Can You Buy Liquid IV With Your HSA?

There are strict guidelines regarding how you can use HSA funds. All HSA purchases must be eligible under these rules. The majority of over-the-counter medications are covered by HSA, but Liquid IV is in a tricky spot. It’s an over-the-counter product, but it wouldn’t be conventionally regarded as medicine.

The World Health Organization (WHO) recognizes electrolyte drinks as “Oral Rehydration Therapy” or ORT products. ORT products are on WHO’s List of Essential Medicines. In the United States, we refer to ORT products as rehydration solutions, and we also consider them to be equivalent to over-the-counter medicine. 

In the eyes of the HSA guidelines, Liquid IV would be considered a “rehydration solution.” Rehydration solutions are over-the-counter drinks or water additives that contain vital electrolytes. Electrolytes are essential for human health. They help the body retain hydration, support muscle health and repair, and even help the heart to function normally. 

How To Get Liquid IV With Your HSA

There are two ways to make HSA-eligible purchases. The first way is to use a debit card linked directly to your HSA account. The second way is to save your receipts, buy Liquid IV with your personal money, and reimburse yourself through your HSA account. 

Purchase Liquid IV With an HSA Linked Debit Card

Some retailers offer HSA/FSA as a direct form of payment — at Truemed, we work with Hydrant hydration products so you can use your HSA to complete your purchase. 

You can use the debit card linked to your HSA account for eligible purchases, and it’s just as easy as using your personal debit card to pay for a purchase. You don’t have to take any additional steps besides saving your receipt as proof of HSA-eligible purchase. 

If you’re purchasing HSA-eligible and non-eligible items at the same time, split your transaction to keep things simple. Everything you need will be on one receipt.

Purchase Liquid IV and Reimburse Yourself From Your HSA

Some retailers don’t accept HSA debit cards. If the retailer you’re purchasing Liquid IV from doesn’t offer HSA/FSA payment processing, you’ll need to buy Liquid IV with your personal money and save your receipt. You can reimburse yourself by withdrawing money from your HSA account or writing yourself a check from your HSA account.

Unless you’re making a bulk purchase, it may not be worthwhile to immediately reimburse yourself. There’s no time limit on HSA reimbursements, and as long as you make an eligible purchase after your HSA was established and you save your dated receipt or invoice, you can reimburse yourself at any time you’d like. Some people wait until the end of the year to reimburse themselves for all the purchases they’ve made throughout the year.

Can Retailers Sell Liquid IV as an HSA-Eligible Product?

Customers can use their HSA funds to shop anywhere they’d like. Most of the time, they have to purchase HSA-eligible items with their own money and reimburse themselves because many retailers don’t accept HSA debit cards. The reimbursement process can be a bit of a hassle, so people who frequently utilize their HSA account usually prefer to shop with retailers who can accommodate them. 

If you sell Liquid IV or other HSA-eligible products and services, offering your customers the option to pay with their HSA debit cards can be a game changer. It isn’t difficult to integrate HSA payment processing into your website. Truemed has helped a wide array of retailers across many health and wellness-related niches offer HSA payment to their customers.

The Bottom Line: Liquid IV May Be HSA Eligible

If you have an HSA and you want to stock up on Liquid IV, you’re allowed to use your HSA funds to buy it. You can purchase Liquid IV or other hydration products from a retailer that accepts HSA/FSA payments, or you can buy it with your personal money and reimburse yourself from your HSA.

If you’re a retailer that sells Liquid IV, Truemed can help you accept HSA/FSA funds for Liquid IV and other health and wellness products that meet HSA/FSA criteria. Contact us when you’re ready to make it easier for your customers to take control of their own wellness.

Sources:

Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service

Electrolytes: Types, Purpose & Normal Levels | Cleveland Clinic

WHO Model List of Essential Medicines - 23rd list, 2023 | World Health Organization

Understanding the use of oral rehydration therapy: A narrative review from clinical practice to main recommendations | PMC