clr_Iapaan, I've looked into this again, and it's a bit hazy. The Internal Revenue Code, section 223 covers HSAs (like I mentioned in my other comment). It defines what a qualified medical expense is in subsection (2). This definition seems to only apply for "medical care" payments. But then subparagraph (B) has to add an exclusion to that definition and say that these "qualified medical expenses" don't count for "any payment for insurance." This would imply that without subparagraph (B), an HSA owner would be able to use their HSA to pay for insurance payments. Since an HCSM is not insurance, the exclusion in subparagraph (B) wouldn't apply. So it seems to me that you could use it for HCSM costs! But I am not even close to a Tax Lawyer, and I can't guarantee this would stand against an audit, but it sounds doable to me!
