From the Hotline: HSA Distributions and Non-Covered Dependents

Question: Can Health Saving Account (HSA) distributions be used for a dependent covered under a non-HSA plan?

Answer: Yes, monies in an individual HSA account may be used for a dependent not covered under the High Deductible Health Plan (HDHP), as long as the dependent is claimed on the participating employee’s tax return, and the expenses are qualified medical expenses outlined in IRS Publication 502 (e.g. co-pays, medical fees, etc.).

Sources: www.irs.gov/publications/p969/index.html, and www.irs.gov/publications/p502/