Top 10 Reasons Your HSA Does Not Match Your Deductible #6

6. You paid for non-covered benefits with your funds

While an HSA is a bank account, it is a very special account because it is funded with tax-exempt dollars. That means that these funds can only be spent of IRS declared qualified expenses. While this certainly includes medical claims that area applied to your deductible, this money can also be used to pay for such expenses as acupuncture and over the counter medications (so long as you have a prescription on file). However, in many cases these expenses are not eligible to be applied to your medical deductible. While you can pay for them with your HSA funds, you will end up with less money in your HSA than you must have to meet your deductible.

For instance, let’s say that you have a $1500 deductible and start the year with $1500 in your HSA. Since you have seasonal allergies, your physician has suggested that you get some Allegra in April. Although this is now an over the counter medication and cannot be run through your medical insurance, because the physician has written you a prescription, you are able to pay the $20 charges with your HSA funds. You now have $1480 in your HSA and $1500 left to meet on your deductible. When you have a bad fall on a run in May and break your ankle, you x-rays, casting, and crutches total claims of $1600. You insurance applies the first $1500 to you deducible and pays the remaining $100. You are responsible for the $1500, but you only have $1480 in your HSA. You may pay up to $1480 out of your HSA, but you will need to pay $20 out of pocket to meet you deductible.

Want to know to rest of the top 10 reasons your HSA does not match your deductible? Check out the McGohan Brabender checklist and look for upcoming and previous articles explaining the other reasons!