How to Understand What Is Not Covered Under an HSA Account

An HSA lets you put money aside for medical expenses

It is no secret that health care costs are on the rise, and those cost increases are likely to continue in the future. Companies of all sizes are looking for ways to get their workers more involved in the cost of their own health care, and one way they are doing that is by offering high deductible health plans and health savings accounts. Opening an HSA can be a smart move, but it is important to understand what is--and just as importantly, what is not covered--by these plans.

Things You'll Need

• HSA literature

Instructions

1. Review the claims you have submitted to your health insurance plan, including explanation of benefits (EOB) forms, explanation of payment (EOP) forms and clam submission forms. Your HSA can only be used to pay expenses that have not already been paid by your health insurer or employer.

2. Review the terms of your health savings account to get a list of eligible and ineligible expenses. If your HSA is provided by your employer, your human resources department can help you sort out what is and is not covered. If you invest in an HSA on your own, the institution holding the funds can give you a list of covered and non-covered expenses.

3. Ensure that any expenses submitted for reimbursement by your HSA have been incurred by you or a dependent family member. The only medical expenses eligible for reimbursement under an HSA are those that have been paid for by yourself or one of your dependents.

4. Check with your health care provider to make sure the operation or procedure you have planned is not considered cosmetic. HSA funds cannot be used to pay for cosmetic procedures for beauty enhancements.

5. Understand that over-the-counter vitamins, including multivitamins and single vitamins like vitamins C and E, are not reimbursable using HSA funds. The only vitamins that can be charged to your HSA are those that have been prescribed by a doctor as treatment for a recognized vitamin deficiency.

References

• Money Magazine: How Does a Health Savings Account (HSA) Work
• Cigna: Eligible and Ineligible HSA Expenses

Resources

• IRS Website: HSA Information