HSA expense tracking?

[sunzt]

For those of you who have a Health Savings Account (NOT FSA), are you required to provide itemized receipts for purchases using your debit card? What about ATM withdrawals? Do you need to provide a receipt showing that the ATM withdrawal was used for a medical expense? How else would they determine if your purchase was a qualified expense if it was for product instead of medical services?

Basically, i'm wondering how they check if any ATM withdrawal or debit card purchase is a "qualified expense".

 

[Ns1]

itemized receipt if it's not in the FSA system

 

[KidNiki1]

I can no reed gud.

Apologies. 🙂

 

[rcpratt]

I don't use my FSA right now, but I know BCN makes you submit receipts for literally everything.

 

[Elbryn]

how does an atm withdrawl equate directly to a reimbursable request? typically most fsa/hsa requires an itemized receipt. if you used cash, you'd still get a receipt right? even if it were a co-pay at a doctor's office, you can ask for a receipt.

 

[sunzt]

hmm called Aetna and they said they don't require any receipts. Only if I get audited by IRS is when i need receipts.... hmmmm

 

[Ns1]

whoops failure to read.

 

[sunzt]

IRS regulations require that all Health Care FSA debit card transactions made at non-IIAS* certified merchants be substantiated by providing a third-party receipt or an Explanation of Benefits Statement (EOB). The receipt(s) must include the following: name and address of the service provider, date the service/expense was incurred, detailed description of the service/expense provided and amount charged for the service or patient responsibility.
This transaction will remain pending in your account until we receive an itemized receipt or EOB showing that the expense was a qualified Health Care FSA purchase. Please provide the above information within 30 days of the date of this letter. Submit receipts to:
OptumHealth Financial Services
P.O. Box 728
Anoka MN 55303-0728
Fax: 1-888-776-5024 or e-mail RNL@optumhealthfinancial.com Please include a copy of this letter with your receipt to expedite processing. DO NOT include a “Claim for Reimbursement” form with your receipts.
If the above amount is a recurring expense,you can have future expenses for this amount and at this location automatically substantiated in the future, with no further action on your part, simply by circling YES here when you return this letter with documentation. If you have questions, please contact your dedicated customer service team at 1-866-630-6366.

"Health Care FSA" is not an HSA right? So this doesn't apply.

 

[Ns1]

"Health Care FSA" is not an HSA right? So this doesn't apply.

ah yes, good catch.

i def have an FSA and not an HSA.

 

[dullard]

The HSA is between you and the IRS. The IRS doesn't care if you use cash, ATM, debit card, check, or credit card. All it cares about is do you have proof of how much you spend on health care. Keep your medical expense receipts and you'll be just fine. That is the same as any other IRS requirement (keep receipts for everything you might deduct).

That said, you are doing the HSA wrong. If you can possibly afford to do so, max out the HSA ($6150 a year for a family, $3000 for a single person), then buy all health care out of pocket. Why? Because that $6150 is the single best tax break you can possibly get.
1) You can invest in it when you don't qualify for other retirement plans.
2) It drops your income so you might now qualify for other tax breaks, retirement plans, or possibly even a lower tax bracket.
3) It grows tax deferred for decades.
4) Unlike an IRA you get to withdraw from it in retirement as you please (or keep it growing) without restrictions.
5) Unlike other retirement accounts, you can withdraw tax and penalty free at any age as long as you have a medical expense that year equal to or more than the withdrawl.
6) If you use it up in old age for medical expenses you'll never be taxed on either the prinicpal OR the gains! No other retirement plan comes close to that.

Using it up now eliminates so many of those benefits (it can't grow tax deferred/tax free gains much if you keep withdrawing from it). So I pay for my medical bills out of pocket even though I could use the HSA to reimburse myself. Plus, by letting it grow many banks/insurance companies that offer HSAs will waive their fees.

The only drawback is HSA investment choices are limited (by banks/insurance companies) at the moment. In other words, you can't invest in anything you want.