Health Savings Account when not on high deductible plan (HSA, medical, hospital)
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In 2012, I had a high deductible plan. I opened an HSA to assist with paying the deductibles and whatnot. I was told by my HR department (this is where I'm at fault for not researching it) that if I switched from the high deductible plan to a more traditional health insurance plan, that the money comes with me and is usable.
Two months ago, I lost my job but got another one with no break in benefits. However, this new company doesn't offer a high-deductible plan. So, I have the "traditional plan."
After incurring about a 30k hospital bill, I expected to use the 5k in my HSA to pay for part of it. Alas, all the providers are declining the card. I can't get an answer from the HSA manager yet since they apparently close for the day at 3pm (what kind of business does that?)
Anyone know anything about a situation like this? Is my HSA money "locked up" now for the foreseeable future and not usable since I'm on a traditional plan?
I was able to write checks on my HSA. Don't you have that capacity?
Your problem may be with attempting to use a "card" instead of just writing a check. Were you able to use this card previously, or is this your first attempt?
If I had a card, I don't remember it. Think it was offered and I didn't bother to get one.
I would put medical bills a credit card, and then write checks to myself from the HSA to cover it. That's permissible. Just keep the medical bills, charge statements, and your HSA checks/statements with your tax records. All of this was done after I lost my job - I never had a problem accessing my HSA via check.
Your funds should be available to you with no issues at all. You always have access to those funds. Since you moved to a traditional plan, you can't ADD to that account. It's possible, since it is a debit card, that the bill is for more than what you have in the account and that is why it is being declined. Do you have online access to that account to check the funds?
I knew several whop retired early and used it to pay their healthcare insurance before getting on medicare and still use what is left to pay their supplement now.
HSA debit cards are often restricted to known exclusive approved healthcare vendors since all transactions must be IRS approved transactions. If the transaction was cosmetic surgery that is not approved by the IRS and could be why the card was declined. It's also possible, though unlikely, that your provider doesn't have the proper merchant ID coded as an exclusive healthcare provider.
The checkbook should work fine as will a reimbursement request but you should first understand why the the debit card declined. There is a better than average chance the transaction isn't valid as the debit cards are usually 'smart' debit cards. Who administers your HSA?
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