As you consider an HSA, you may be wondering, "What happens if I don't have enough money in my HSA to pay for the care I need?"
Here's how it would work if your health plan year begins on January 1:
Date
|
YOUR Action
|
Total Paid Out-of-
Pocket
|
HSA
Balance
|
Family
Deductible
Balance
|
Jan. 1
|
Year begins. Your employer funds your HSA with $500.
|
$0
|
$500
|
$2,400
|
Jan. 2
|
Your child breaks a leg and goes to the ER. You show your Priority Health
ID card.
|
$0
|
$500
|
$2,400 |
Jan. 2
|
Pick up antibiotic prescription, $50, at a drug store. Pay
with HSA debit card. (Ask for and get a generic version; the brand
name version is $85.)
|
$0
|
$450 |
$2,400
|
Jan. 10
|
The pharmacy bills Priority Health $0 for the prescription. PH
applies the $50 you paid from your HSA to the deductible.
|
$0
|
$450
|
$2,350
|
Jan. 10
|
The hospital bills you for the $500 ER visit, and copies
Priority Health, so PH applies it to the deductible.
|
$0
|
$450
|
$1,900
|
Jan. 15
|
You write the hospital a personal check, then mark the bill
paid with the check number and date, and save it in your HSA receipts
file.
|
$500
|
$450
|
$1,900
|
Jan. 30
|
$200 a month goes from your pay into your HSA, reducing your taxable
income.
|
$500
|
$650
|
$1,900
|
Feb. 1
|
You write yourself a check from your HSA account to reimburse yourself for the $500 hospital visit. You mark the ER invoice as
'Reimbursed on 2/1/2008'. Save it in your "Paid HSA Receipts" folder in
case the IRS ever wants to see it.
|
$500
|
$150
|
$1,900
|
Feb. 28
|
$200 payroll deduction to HSA
|
$500
|
$350
|
$1,900
|
Mar. 30
|
$200 payroll deduction to HSA
|
$500 |
$550
|
$1,900
|
April 15
|
You get a physical. Preventive care is 100% covered.
|
$500 |
$550
|
$1,900
|
Apr. 30
|
$200 payroll deduction to HSA
|
$500 |
$750
|
$1,900
|
May 30
|
$200 payroll deduction to HSA
|
$500 |
$950
|
$1,900
|
June 25
|
Your child gets a physical and shots. 100% covered.
|
$500 |
$950
|
$1,900
|
June 30
|
$200 payroll deduction to HSA
|
$500 |
$1,150
|
$1,900
|
July 30
|
When your account totals more than $1,000, your bank
begins to pay you a little interest on the balance.
|
$500 |
$1,155
|
$1,900
|
July 30
|
$200 payroll deduction to HSA
|
$500 |
$1,355
|
$1,900
|
Aug. 30
|
Payroll deduction to HSA + interest from bank ($200 + $5) |
$500 |
$1,560
|
$1,900
|
Sep. 28
|
Doctor visit for your child, who has the sniffles. Just show your ID card.
|
$500 |
$1,560
|
$1,900
|
Sep. 30
|
Payroll deduction to HSA + interest from bank ($200 + $5)
|
$500 |
$1,765
|
$1,900
|
Oct. 10
|
Doctor bills you $100 for the visit, copying Priority Health.
PH credits your deductible.
|
$500
|
$1,765
|
$1,800
|
Oct. 12
|
You pay your doctor bill using a check paid from your HSA and mark the invoice "Paid from HSA" and the date, in case the IRS ever wants
to see it.
|
$600 |
$1,665
|
$1,800
|
Oct. 30
|
Payroll deduction to HSA + interest from bank ($200 + $5)
|
$600 |
$1,870
|
$1,800
|
Nov. 12
|
You experience chest pain and go to the ER for tests and treatment. You show your Priority Health card.
|
$600 |
$1,870
|
$1,800
|
Nov. 30
|
Payroll deduction to HSA + interest from bank ($200 + $5)
|
$600 |
$2,075
|
$1,800
|
Dec. 10
|
The hospital bills you for the $1,900 ER visit, and copies
Priority Health, so PH applies it to the deductible.
The total bill equals more than your remaining deductible, so your health plan benefits kick in for the $100 difference.
|
$2,500
|
$2,075
|
$0
|
Dec. 15
|
You pay the hospital bill ($1,800 plus $50 ER copay) using a check paid from your HSA, then mark the bill
"Paid from HSA" and the date, in case the IRS ever wants to see it.
|
$2,500
|
$125 |
$0
|
Dec. 31
|
Payroll deduction to HSA + interest from bank ($200 + $5)
|
$2,500 |
$330
|
$0
|
|
End of plan year. Your remaining balance ($330) stays in the bank and is ready to use to pay for future qualified HSA expenses.
|
|
$330
|
(resets each plan year)
|
Use the HSA worksheet to determine your projected health care costs and find out if an HSA is the right cost-saving option for you and your family.
Last modified
01/06/10
|
