CBD: HSA Eligibility

CBD: reimbursement is not eligible with a Health Savings Account (HSA)

CBD (Cannabidiol) oil and other CBD products are not eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What is CBD oil and other CBD products? 

CBD, which stands for cannabidiol, is the second-most prevalent of the active ingredients behind THC, the psychoactive element found in marijuana. While CBD is an essential ingredient for those who utilize medical marijuana, CBD oil and other products are typically derived from hemp plants. Hemp (a cousin of the marijuana plant) contains little to no traces of THC, and CBD products are typically extracted by steeping the stems, seeds and leaves in alcohol or oil. (Harvard Health Publishing)

CBD is technically legal in all 50 states as long it's derived from hemp. Hemp was removed from the Controlled Substances Act in late 2018, which ensures that it will no longer be treated as an illegal substance under federal law (FDA). But CBD products that are derived from marijuana re more highly-regulated at the state level. THC-derived CBD is legal in the following states: Alabama, Georgia, Indiana, Iowa, Kansas, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, Texas, Virginia, Wisconsin and Wyoming. (NORML)

Of course, there are experts with more details on the subject. The National Organization for the Reform of Marijuana Laws (NORML) has more information on what CBD products are legal in your state.

What is CBD used for?

Proponents of CBD claim its benefits include reduced anxiety, inflammation, arthritis and overall pain relief. Unlike prescription medications, there are few adverse side effects from CBD. Patients generally cannot become addicted to CBD, which can make it preferable to traditional pain pills. In 2018, the FDA approved a CBD-based drug to treat seizures for people with a rare type of epilepsy (FDA).

CBD usually comes in a few different forms, including oil, tablets and creams. Many veterinarians even sell CBD products for animal anxiety.

Is CBD FSA-eligible? 

The IRS has yet to issue guidance on the eligibility status of CBD oil and products, so they are ineligible for purchase with FSA, HSA, HRA, LCFSA and DCFSA funds at this time.


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