Can I treat my premiums during the period I was unemployed as QMEs?

[anwwalla]

I voluntarily left my job in 2017 largely due to the stress it caused.  Since I left voluntarily, I didn't think I would qualify for unemployment benefits and didn't attempt to receive them.  My present employer told me that I likely could have qualified.

[Anita01]

What do you mean by premiums?  are you asking if you can claim your unemployment benefits as medical expenses?

[anwwalla]

Sorry, no.  I meant the insurance premiums themselves.  I'm not concerned with the deductibility of the premiums, because I'd still be a far way away from itemizing deductions even if these could be included as Schedule A deductions.  I want to be able to reimburse myself for the cost of the insurance premiums from my HSA.

[Anita01]

HSA money was taken from your pay pre-tax wasn't it?

[anwwalla]

Yes.  However IRS guidance from Publication 969 says that "Health care coverage while receiving unemployment compensation under federal or state law" can be treated as qualified medical expenses.
 Hence my question: I didn't receive unemployment compensation, but I likely could have - so can I reimburse myself for the cost of the insurance premiums under the theory that they can be treated as qualified medical expenses?  (The premiums in question were paid for during 2017 with non-HSA money.)

[Anita01 · Accepted solution]

Yes, you can deduct medical insurance premiums that were not paid from an HSA.  Any premiums paid with pre-tax contributions from an HSA or pre-tax deductions from a paycheck are not deductible.

[anwwalla]

I want to reimburse myself from the HSA - i.e. transfer the amount of the premiums I've already paid from my HSA to my checking account.  I'm not concerned with deducting them on my tax return.

[Anita01]

Those would be qualified expenses for reimbursement from your HSA.

[anwwalla]

Awesome.  Thanks for your help!