Using your HSA
You pay 100% of the cost of your health care out of your pocket until you meet your deductible.
Here are a few helpful tips in order to help you save on your medical costs:
- Some preventive health care services are exceptions; meaning you might only pay a copay for those. See your medical plan for more information.
- Your Priority Health medical plan entitles you to a discount at health care providers in your plan's network. You need to know what plan you have – HMO, POS, PPO, etc. Then you can use the online Find a Doctor directory to find doctors, specialists, hospitals and other providers in your plan's network.
- Priority Health’s Cost Estimator tool can help you find the cost of hundreds of medical services and prescriptions. Knowing the cost of your care gives you the power to save more of your HSA dollars. Learn more about Cost Estimator.
Use the money in your HSA to reimburse yourself for your medical expenses.
- Careful! HSA funds can only be used to pay for "qualified" health care expenses. See a list of health care expenses that you can use your HSA to pay for.
- Even if your spouse or children are covered by another medical plan, you can use your HSA funds to pay for their medical expenses.
- Create two files (or shoeboxes!) for your receipts - one named "PAID BY HSA" for the medical expense receipts that have been paid for out of your HSA, and one named "NOT PAID BY HSA" for receipts that you paid cash for but haven't reimbursed yourself for yet from your HSA.
- Your HSA will come with a debit card you can use at your doctor's office, pharmacy, etc. Use it to pay some medical expenses directly out of your HSA. Be sure to get a detailed receipt for each expense and put it in your PAID BY HSA file.
- When you pay cash for a medical expense, you will also need a detailed receipt. Keep these receipts in the NOT PAID BY HSA file.
- You can reimburse yourself for the receipts in the NOT PAID BY HSA file any time your HSA has enough money - from right away to years later.
- To reimburse yourself for an expense, write yourself a check from your health savings account to pay yourself back.
- Mark the receipt "Reimbursed through my HSA" and the date. Then put the receipt in your PAID BY HSA file, in case the IRS ever asks to see your receipts.
- Investment idea: If you can afford to pay cash for your health care expenses now, you can let your HSA money earn interest and build up. Then you'll have more tax-free money to pay for health care expenses later, such as when you retire.
Paying for your prescriptions
- You pay 100% of the cost of your medications out of your pocket until you meet your deductible.
- The cost you pay will be a discounted cost because Priority Health negotiates pricing with pharmacies.
- Reimburse yourself from your HSA by following the directions above, "Use the money in your HSA...". Only drugs manufactured in the U.S. can be paid for with HSA funds.
- You can't use HSA funds to pay for over-the-counter drugs unless you have a prescription.
- Always show your ID card and ask the pharmacy to bill Priority Health, even when you pay the whole cost. This will ensure your prescription costs are applied toward your deductible.
After you meet your deductible
- Your plan's prescription benefits will cover all or most of the cost.
- You can use HSA funds to pay for copays/coinsurance.
- If you reach your out-of-pocket maximum (refer to your Summary of Benefits) you'll no longer pay anything for covered drugs.
- It pays to shop around — prices can vary from pharmacy to pharmacy
- Always ask for generics