How does Service 1st Benefits support my business during open enrollment?

We personally manage the entire open enrollment process — from educating employees to handling enrollment forms and answering plan questions. Our goal is to make open enrollment smooth and stress-free for everyone.

Can employees contact you directly for help?

Yes. Employees can reach out to us anytime for questions about claims, coverage, ID cards, or plan details. We act as your team’s benefits partner, not just your broker.

What size businesses do you work with?

We specialize in serving small and medium-sized businesses, typically ranging from 1–200 employees. If you’re growing or planning to expand, we help scale your benefits as your team grows.

Do you handle communication with insurance carriers for us?

Absolutely. We take care of claims issues, employee changes, renewals, and any carrier communication so you don’t have to spend hours on hold.

Do you offer voluntary or supplemental benefits?

Yes. We can provide optional add-ons like disability, accident, or critical illness insurance to enhance your benefits package at little or no cost to the employer.

What types of group benefits do you offer?

We provide comprehensive group health, dental, vision, and life insurance options for small and medium-sized businesses. We help you compare plans, handle enrollment, and manage carrier communication.

What information do you need to provide a quote?

We typically need: Number of employees Basic employee census (age, gender, ZIP code) Current plan (if applicable) Desired benefits or coverage goals We keep the process as simple as possible.

Do you charge fees for your services?

No. Our services — including plan comparison, open enrollment, and year-round support — are provided at no additional cost to your business.

HSA-Eligible Expenses: What Actually Qualifies (and What People Get Wrong)

Service 1st Benefits

4 days ago

2 min read

An HSA isn't a generic savings account — every withdrawal is supposed to go toward a qualified medical expense, and the definition of "qualified" has some real surprises in both directions. Here's what actually counts, what doesn't, and the mistake that costs people the most.

The Actual Rule

The IRS defines a qualified medical expense as a cost for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any function of the body. In practice, that's a broad list: doctor visits, prescriptions, dental and vision care, mental health services, and a wide range of medical equipment and supplies.

Things That Qualify Now (and Didn't Used To)

Since the CARES Act in 2020, over-the-counter medications qualify as an HSA expense without needing a prescription first, and menstrual care products qualify as well. More recently, starting in 2026, certain direct primary care membership fees can also be paid from an HSA, within monthly limits. These changes are recent enough that plenty of people are still budgeting as if the old, stricter rules apply.

The Big One People Get Wrong: Premiums

Health insurance premiums are generally not an eligible HSA expense — including, notably, the premium for the HDHP tied to your own HSA, if you're paying it yourself outside of payroll. There are exactly four exceptions: COBRA continuation coverage premiums, Medicare Part A, B, D, and Medicare Advantage premiums once you turn 65 (Medigap specifically does not qualify, even after 65), premiums for coverage purchased while you're receiving unemployment compensation, and premiums for a qualified long-term care insurance policy, up to an IRS-set limit that adjusts by age each year.

What Doesn't Qualify at All

Cosmetic procedures and general-health purchases like gym memberships aren't eligible, even though they're health-related in a broad sense. The exception is a specific medical necessity — if a doctor documents that something is needed to treat a diagnosed condition, that changes the analysis. Absent that, the IRS draws a firm line between "medical care" and "general wellness."

The Mistake That Actually Costs People

It's rarely the wrong purchase that causes a problem — it's the missing paperwork. The IRS can audit HSA withdrawals up to three years after the fact, and without a receipt showing the expense was qualified, a withdrawal that was tax-free when you took it becomes taxable income, plus a 20% penalty if you're under 65, when you can't back it up. Keep records for everything, not just the big purchases.

One Timing Rule to Know

An expense only counts if it happened after your HSA was established. You can't open an account and then reimburse yourself for medical bills from before it existed — the timeline runs forward from the account's opening date, not from when you first became HSA-eligible.

Final Thoughts

Your HSA covers more than most people assume (OTC medication, menstrual products, now certain direct primary care fees) and less than most people assume (nearly every insurance premium, with four narrow exceptions). Knowing both sides — and keeping your receipts — is what keeps that tax-free money tax-free.