Health savings accounts

[Mom0012]

I am used to having a flexfund account where I have to submit all my health expenses for reimbursement.

 

This year we have a health savings account. When I go to the doctor, or pick up a prescription, I pay the bill with a debit/credit card linked to our health savings account. It doesn't seem like I need to submit any forms or anything. Is this correct? Is it run on more of an honor system like when you claim medical expenses on your tax return? Do I just need to make sure to keep all my receipts so that I can verify that these expenses I paid with the HSA were, in fact, for qualified medical expenses?

 

I have a few medical bills that I put on another credit card without thinking about it. Can I reimburse myself or pay the health care expenses on the credit card with the HSA checks I have?

 

Thanks so much!

Lisa

[jenn-]

You need to keep up with your payment slips (not the visa/master card receipt but the bill like thing they hand you at the office). Normally they can cross reference charges with claims from the doctor/pharmacy, but every so often something flags and you have to prove the charge. This usually happens to me when I pay for more than one person at a time. You can submit a claim for reimbursement on the stuff you paid on a different card. When you run out of money for the year, it won't take your card.

[Mom0012]

Okay, thanks. This is so helpful. You would think I could find this information somewhere, but I haven't had any luck in doing so. I am definitely holding onto all receipts.

 

Lisa

[Tina]

That they use a card for this now is interesting! I've fought against having an HSA for the last several years because I don't have time to file claims to get my money back, nor to pay into the account and pay the medical bills at the same time. You're making this sound worthwhile now!

[QueenCat]

You need to keep up with your payment slips (not the visa/master card receipt but the bill like thing they hand you at the office). Normally they can cross reference charges with claims from the doctor/pharmacy, but every so often something flags and you have to prove the charge. This usually happens to me when I pay for more than one person at a time. You can submit a claim for reimbursement on the stuff you paid on a different card. When you run out of money for the year, it won't take your card.

 

:iagree:This is what we're told by dh's company. To keep them... The boys have one doc who doesn't take credit/debit cards so we write him a check, and file for reimbursement.

[Julie in CA]

:iagree:This is what we're told by dh's company. To keep them... The boys have one doc who doesn't take credit/debit cards so we write him a check, and file for reimbursement.

I have a doc that doesn't take cards, but I can pay online through my HSA. It's super-duper handy, and then I don't have to pay it out of my grocery budget and wait for reimbursement. :toetap05:

[magnificent_baby]

I agree with the other posters. Keep all receipts in case of an audit.

 

If for some reason we pay a medical bill with our own personal account, we write ourselves a check from the HSA account.

 

Also keep in mind that the law changed recently, and I don't think that over the counter products are eligible anymore! Only actual medical/eye/dental treatment bills and prescribed type items.

[Jean in Newcastle]

If it's something where there will be a claim on file with your insurance company you don't need to bother keeping receipts IMO. The savings account people will take a copy of the EOB (which can usually be found on-line). You don't even need proof you already paid your share of it (or paid for it at all). But for stuff like over the counter items where there is no other paper trail then I'd keep the receipt.

 

:iagree:

[Jean in Newcastle]

I agree with the other posters. Keep all receipts in case of an audit.

 

If for some reason we pay a medical bill with our own personal account, we write ourselves a check from the HSA account.

 

Also keep in mind that the law changed recently, and I don't think that over the counter products are eligible anymore! Only actual medical/eye/dental treatment bills and prescribed type items.

 

I was so pleased to find that at our pharmacy, if I pick up a prescription and then some OTC items, their computer sorts out what is eligible on for the HSA and what isn't. It will apply the HSA costs to my HSA card and then for the remaining bill I will give them my normal credit card.

[magnificent_baby]

If it's something where there will be a claim on file with your insurance company you don't need to bother keeping receipts IMO. The savings account people will take a copy of the EOB (which can usually be found on-line). You don't even need proof you already paid your share of it (or paid for it at all). But for stuff like over the counter items where there is no other paper trail then I'd keep the receipt.

 

Unfortunately, I don't think anything over the counter is eligible anymore. I believe the law changed in 2012.

 

That really stinks because I used to use it for Tylenol, Motrin, contact solution, etc. Not any more. :thumbdown:

[magnificent_baby]

Yeah, they now only allow contact lens solution and bandages OTC without a prescription.

 

I was really bummed about that change.

 

Although if she has an HSA, that might be different.

 

 

We were posting at the same time, please ignore my post to you.

 

That would be awesome if contact solution is covered, we go through a ton of the expensive kind. I will have to look into that.

 

Maybe there are different types of plans. We have an HSA through a bank, much like a regular debit/checking account.

[Mom0012]

:iagree:This is what we're told by dh's company. To keep them... The boys have one doc who doesn't take credit/debit cards so we write him a check, and file for reimbursement.

 

What do you mean "file for reimbursement"? I do have checks that go along with my HSA and I have yet to be able to find anywhere that I have to file a claim for reimbursement. When we had a flexfund account, that is always what we did, so this is new to me. Do you have an HSA or a flexfund?

 

Lisa

[luvnlattes]

I have a few medical bills that I put on another credit card without thinking about it. Can I reimburse myself or pay the health care expenses on the credit card with the HSA checks I have?

 

I would think you can do this. We didn't receive any checks but were told that if we wanted to be reimbursed for expenses we'd already paid for, we could use it like a debit card and go to an ATM and make a withdrawal. We would have to have to pay ATM fees though. That's nice that you have checks and can avoid that. I would suggest calling the card issuer just to be sure it's acceptable to write the check out to yourself.

[QueenCat]

I have a doc that doesn't take cards, but I can pay online through my HSA. It's super-duper handy, and then I don't have to pay it out of my grocery budget and wait for reimbursement. :toetap05:

 

I really only have to do this in January.... as by the time the Feb. appt comes, I've been reimbursed & use that to pay again. Usually, by May, we've used the HSA, and then insurance is paying 100%. Our HSA covers our deductible only, per company regs.

[QueenCat]

What do you mean "file for reimbursement"? I do have checks that go along with my HSA and I have yet to be able to find anywhere that I have to file a claim for reimbursement. When we had a flexfund account, that is always what we did, so this is new to me. Do you have an HSA or a flexfund?

 

Lisa

 

We have an HSA, used to have an FSA though. We do not have checks to use for the HSA, only the preloaded credit card. Our HSA comes from dh's company.

[Mom0012]

Well what would you do if you wanted to pay for something medical and the provider didn't take cards? You would pay for it and file a claim.

 

Maybe it never came up for you, but I assume there has to be a way to get the money when that happens.

 

Well, I have a checkbook and can write myself a check from the HSA. I just can't find any info about filing a claim anywhere. When we had the flexfund last year, that's what I always did and it was very clear that that was what I was supposed to do. It would be really nice if my husband's company would be a little forthcoming with the information. I have had to fight tooth and nail to get info about our health insurance as well as the health savings account.

 

Lisa

Edited March 10, 2012 by LisaTheresa

[kalanamak]

I am used to having a flexfund account where I have to submit all my health expenses for reimbursement.

 

This year we have a health savings account. When I go to the doctor, or pick up a prescription, I pay the bill with a debit/credit card linked to our health savings account. It doesn't seem like I need to submit any forms or anything. Is this correct? Is it run on more of an honor system like when you claim medical expenses on your tax return? Do I just need to make sure to keep all my receipts so that I can verify that these expenses I paid with the HSA were, in fact, for qualified medical expenses?

 

I have a few medical bills that I put on another credit card without thinking about it. Can I reimburse myself or pay the health care expenses on the credit card with the HSA checks I have?

 

Thanks so much!

Lisa

 

I have one. I pay all my medical expenses with the HSA card AND keep the receipt, which I pop into a TAXES folder, in case I am audited. I switched to an HSA because I never had enough expenses + too high an income to make it pay off via itemized deductions. The big plus for me was that I can use pre-tax dollars without having to itemize.

 

I read all the paper work, and as long as you are paying for legit things (not a weight loss spa) and keep the paper work, you can use HSA funds for it.

 

I'll be curious to see if using a big chunk of HSA funds makes an audit more likely.

 

Can't you ask your HSA fund people? Mine is HealthEquity, and they have been very nice and professional on the phone, and I called and asked A LOT of questions before diving into this.

 

It isn't "the honor system" any more than filling out and signing your tax return is the honor system. The chance of audit hangs.

[Mom0012]

I have one. I pay all my medical expenses with the HSA card AND keep the receipt, which I pop into a TAXES folder, in case I am audited. I switched to an HSA because I never had enough expenses + too high an income to make it pay off via itemized deductions. The big plus for me was that I can use pre-tax dollars without having to itemize.

 

I read all the paper work, and as long as you are paying for legit things (not a weight loss spa) and keep the paper work, you can use HSA funds for it.

 

I'll be curious to see if using a big chunk of HSA funds makes an audit more likely.

 

Can't you ask your HSA fund people? Mine is HealthEquity, and they have been very nice and professional on the phone, and I called and asked A LOT of questions before diving into this.

 

It isn't "the honor system" any more than filling out and signing your tax return is the honor system. The chance of audit hangs.

 

I'll have to see if I can locate a phone number. The only info we got with the HSA was a credit/debit card in the mail and the checks. These items came without anything further other than their website address, which I have scoured for information. I will have to check again and see if I can find a phone number. I fully understand what expenses qualify as HSA expenditures, it's just never been made clear that I can reimburse myself.

 

Yes, when I made the comment about the "honor system", I meant it was up to me to determine what expenses were eligible and wouldn't have to file claims or answer to anybody unless we are audited. With the flexfund, every expense had to be approved and I filed claims for everything. It just feels weird writing myself a check to pay for an expense that I used another credit card for. I'm not used to that kind of freedom.

 

Lisa

[luvnlattes]

You should have a phone number on the back of the debit card. I just double checked and we have one. That's the number my dh called to get additional information.

[HiddenJewel]

I love having an HSA. It fits our family very well. We can use a debit/credit card or a check. I just pay and keep the receipts for tax purposes.

[Brenda in FL]

I have a few medical bills that I put on another credit card without thinking about it. Can I reimburse myself or pay the health care expenses on the credit card with the HSA checks I have?

 

Thanks so much!

Lisa

 

Yes, you can use your checks to reimburse yourself. (I usually note it on my bill or EOB that I reimbursed myself in case it gets questioned). There's no filing a reimbursement claim. My HSA also offers a bill pay system called DirectPay so I can pay bills that are mailed to me electronically.

[sassenach]

Yes, you can use your checks to reimburse yourself. (I usually note it on my bill or EOB that I reimbursed myself in case it gets questioned). There's no filing a reimbursement claim. My HSA also offers a bill pay system called DirectPay so I can pay bills that are mailed to me electronically.

 

I had no idea! Cool.

 

I save our receipts. If we ever get audited, I want as much paper as possible to throw at them.

[LizzyBee]

I am used to having a flexfund account where I have to submit all my health expenses for reimbursement.

 

This year we have a health savings account. When I go to the doctor, or pick up a prescription, I pay the bill with a debit/credit card linked to our health savings account. It doesn't seem like I need to submit any forms or anything. Is this correct? Is it run on more of an honor system like when you claim medical expenses on your tax return? Do I just need to make sure to keep all my receipts so that I can verify that these expenses I paid with the HSA were, in fact, for qualified medical expenses?

 

I have a few medical bills that I put on another credit card without thinking about it. Can I reimburse myself or pay the health care expenses on the credit card with the HSA checks I have?

 

Thanks so much!

Lisa

 

You can reimburse yourself using the HSA checks. I keep a running tally in Excel so that I can be sure that my reimbursement matches my receipts and I don't accidentally pay myself for the same thing twice.

[Pegasus]

I'll be curious to see if using a big chunk of HSA funds makes an audit more likely.

 

In my personal experience, the answer is YES. We spent almost 10% of our gross income in unreimbursed medical expenses one year (meaning that insurance didn't cover it). We paid everything directly to the various medical providers using our HSA debit card. This was in 2009.

 

We recently completed an audit (in late 2011, so plan to keep things a LONG time) in which they questioned the full amount and asked us to pay income taxes, interest, and late fees on it. *ouch* Fortunately, I had saved all my HSA statements that showed the dates, amounts, and payees. I used these to prove where the money went. I did NOT send in receipts. It was enough documentation for the IRS to close our case.

 

Pegasus

[black_midori]

http://www.irs.gov/pub/irs-pdf/p969.pdf

 

Here is a link to the IRS publication 969 that deals with HSAs, FSAs, MSAs and HRAs.

 

None of these can now be used for nonRX medicines UNLESS you get an rx for them!! So, if you can get your Dr. to give you an rx for Tylenol, you can then consider it a qualified medical expense.

 

Also, you can definitely reimburse yourself for qualified medical expenses using your HSA - the HSA bank doesn't monitor what you do/don't spend it on (generally), as that is your responsibility for accurately reporting on your tax return. They will send you a statement showing what you used during the year and then you are required to state on your tax return how much of that was for qualified expenses. Remember that there is now a *20%* additional tax (instead of just 10%) on funds used for non-qualified things!!!

[Mom0012]

Thanks, everyone. I'm feeling more confident about this now. I will check on the back of my credit/debit card for a number. I will definitely keep a spreadsheet and all my receipts.

 

Lisa

[Guest angelic]

A Health Savings Account is similar to an Individual Retirement Account or an IRA. HSA money that you don't spend for health (or dental) care by the end of the year rolls over to the next year and continues to grow with tax-free interest.

[Night Elf]

I'm not sure what our account is called. I just know it as our medical spending account. We have a credit card attached to it. The only times we had to submit a receipt was the first monthly payment for the orthodontic bill and my eye exam. However, I keep every receipt in a file for just in case.

Edited June 21, 2012 by Night Elf

[HiddenJewel]

I'm not sure what our account is called. I just know it as our medical spending account. We have a credit card attached to it. The only times we had to submit a receipt was the first monthly payment for the orthodontic bill and my eye exam. However, I keep every receipt in a file for just in case.

 

http://www.ehow.com/facts_5862783_difference-between-hsa-msa.html

[zimom]

Thanks for all this great information. We just switched to an HSA last month, but it did not get set up for well over 30 days, after I paid several hundred dollars out of pocket yet again in medical expenses. I was trying to figure out how to add those into the HSA and I think I finally understand. Now to finally get that HSA funded well enough to cover all of our expenses so we can see some of the tax benefit :)