Spanky
Thinks s/he gets paid by the post
I am thinking about paying for medical expenses with a credit card to earn rewards and then reimbursing yourself from the HSA. Are there any disadvantages?
?Well, that money has to come from somewhere, which means it drives up the costs for everyone.
No disadvantages. Besides earning rewards, because medical expenses often aren't final at the time of payment, if you pay from the HSA right then and there, and it turns out to be too high, getting the money back into the HSA will be a hassle.I am thinking about paying for medical expenses with a credit card to earn rewards and then reimbursing yourself from the HSA. Are there any disadvantages?
I am thinking about paying for medical expenses with a credit card to earn rewards and then reimbursing yourself from the HSA. Are there any disadvantages?
That's interesting, never tried that. I don't want the HSA police to come knocking.No, it sounds smart to me. Also, once you receive the bill, call the provider and ask if they offer an additional discount to you if your pay right then and there by credit card.... I've received 10-15% discounts plus the 2% that I get from the credit card company.
I am thinking about paying for medical expenses with a credit card to earn rewards and then reimbursing yourself from the HSA. Are there any disadvantages?
The only dilemma that it creates for me though is whether when I withdraw from the HSA should I use the $100 EOB amount or the $90 or $85 amount that I actually paid.
That's interesting, never tried that. I don't want the HSA police to come knocking.
.... The only dilemma that it creates for me though is whether when I withdraw from the HSA should I use the $100 EOB amount or the $90 or $85 amount that I actually paid.
....If the IRS were to ask you to substantiate your reimbursements, do you think they'd allow $100 or the $90 or $85 you actually paid as shown on your CC bill/receipt? I'd guess the latter.
My concern is the backup ppwk. You could explain it in the notes in the HSA account as backup. Is the insurance company aware of the discount or do they care? Nothing wrong with getting an extra discount on top of insurance discount.That is my guess too, though I would prefer that it the former. I can't find anything specifically on point though.
My concern is the backup ppwk. You could explain it in the notes in the HSA account as backup. Is the insurance company aware of the discount or do they care? Nothing wrong with getting an extra discount on top of insurance discount.
I have never been audited. One of my fears. Say I get audited and the hospital statement or EOB back up paperwork shows a different amount than what I paid. How do I show the correct amount, what I paid without some backup paperwork? If you say I don't need backup paperwork, I am throwing out years of tax documents that are taking up a crazy amount of space in our garage.I don't get the first two sentences of your post.
To my knowledge, the insurer isn't aware that the provider offered me an additional discount.... but even if they did know I doubt that they would care... they paid their contractual amount.
I don't think what I did is very uncommon... we've talked about discounts for immediate payment often on this forum.
I have personally never got to the withdrawing the money from HSA, yet. Money is fungible. I am just keeping the receipts over the past many years and will continue to let the HSA money which is invested continue to ride.
Same. Have not touched mine.
You are allowed to reimburse yourself less. If the EOB showed you owe $100 and you only reimbursed yourself $85 from the HSA because you didn't feel like asking for the full $100, that's perfectly OK.Say I get audited and the hospital statement or EOB back up paperwork shows a different amount than what I paid. How do I show the correct amount, what I paid without some backup paperwork?
Yeah, that's not the question though. Can you reimburse yourself $100 if the EOB showed $100 but you negotiated it down to $85 with the provider?You are allowed to reimburse yourself less. If the EOB showed you owe $100 and you only reimbursed yourself $85 from the HSA because you didn't feel like asking for the full $100, that's perfectly OK.
You are allowed to reimburse yourself less. If the EOB showed you owe $100 and you only reimbursed yourself $85 from the HSA because you didn't feel like asking for the full $100, that's perfectly OK.