topic Re: Insurance annoyance in Community Chat

Insurance annoyance

Abrowneyegirl — Sun, 11 Feb 2018 22:34:43 GMT

I have a Healthcare spend account that I put my OWN money into.

I have had them for years and I understand the uses and limitations of there use.

So far this year I paid my dentist several hundred dollars.

The HSA company my company hired is now questioning the expenses and demanding a detailed description, etc, etc, or they will rescind the payment and put my account on hold.

???????

This is my money and it is being used for an IRS approved expense and if the IRS has an issue they can audit me and I will provide all my receipt and proof.

When I called the HSA company I was basically told that any expense over a $30 co pay is going to flag a need for detailed explanation.

GRRRRRRRR

I plan on spending the entire lump sum of HSA all $2500 next week on my multi-thousand dental expenses (which actually exceed the total HSA savings)

I am not going to justify my spending multiple payments.

Re: Insurance annoyance

Texasmouse — Sun, 11 Feb 2018 22:44:34 GMT

This is why I don't use these types of accounts. I put all my expenses on a credit card that gives me cash back and that way I spend my money as I please, no questions asked, plus my expenses are earning money for me, not someone else.

Re: Insurance annoyance

Abrowneyegirl — Sun, 11 Feb 2018 22:56:57 GMT

@Texasmouse

The tax defered savings lured me in and knowing I have about $10,000 of out of pocket dental expenses.......

I figured I would put some of the money aside in an HSA this will be the last time EVER

Re: Insurance annoyance

Laura14 — Sun, 11 Feb 2018 22:58:14 GMT

I have never had this issue with my HSA and I use it pretty much exclusively for the dentist too since I have no insurance for dental.

Why don't you just have the dentist office print the invoices for you and shut them up?

Or if they are constantly going to hound you for anything over$30 which is nonsense since I can't even remember a medical bill less than $30 transfer to a new bank.

Re: Insurance annoyance

chrystaltree — Sun, 11 Feb 2018 23:02:54 GMT

And that's exactly why I don't have one now. One year, time after time after, I had to submit itemized bills and the next year, I bought two pairs of prescription eyeglasses; one pair for my regular life and another pair that I wear when I'm on my computer. I work remotely and I'm on my laptop 7-8 hrs a day. They paid for them and then asked for an itemized bill...which I furnished...3 separate times. I also included a letter of medical necessity from my opthalmologist who said that she would also file an appeal because they did retract the payment. They then put a hold on the account which meant that I could not use my own money until they were satisfied....which apparently they never were. I never got billed for the glasses so I assume the the appeal was successful but the hold remained on my card.

Re: Insurance annoyance

Abrowneyegirl — Sun, 11 Feb 2018 23:03:21 GMT

wrote:
I have never had this issue with my HSA and I use it pretty much exclusively for the dentist too since I have no insurance for dental.

Why don't you just have the dentist office print the invoices for you and shut them up?

Or if they are constantly going to hound you for anything over$30 which is nonsense since I can't even remember a medical bill less than $30 transfer to a new bank.

I have nver had this problem before either and of course we sent an invoice. HOWEVER there is form that needs to completed with complete and total details and a signed statement about what % insurance is paying ect.....

They sent me a several forms explaining I will need one for just about everything!!!!!!!

Re: Insurance annoyance

quilter61 — Sun, 11 Feb 2018 23:05:08 GMT

I also have an HSA account and they have never questioned me on an expense. The only one that should question you regarding an expense is the IRS since they set the rules.

Re: Insurance annoyance

Laura14 — Sun, 11 Feb 2018 23:06:55 GMT

wrote:
wrote:
I have never had this issue with my HSA and I use it pretty much exclusively for the dentist too since I have no insurance for dental.

Why don't you just have the dentist office print the invoices for you and shut them up?

Or if they are constantly going to hound you for anything over$30 which is nonsense since I can't even remember a medical bill less than $30 transfer to a new bank.
I have nver had this problem before either and of course we sent an invoice. HOWEVER there is form that needs to completed with complete and total details and a signed statement about what % insurance is paying ect.....
They sent me a several forms explaining I will need one for just about everything!!!!!!!

@Abrowneyegirl. Wow! Tax savings or no, I'd be out too. It's your account not theirs. Way overreach, I agree.

Re: Insurance annoyance

Mom2Dogs — Sun, 11 Feb 2018 23:42:38 GMT

That is ridiculous...as long as a procedure or medicine is covered...to me it is none of their business...it's your money.

Re: Insurance annoyance

GCR18 — Sun, 11 Feb 2018 23:45:27 GMT

Hope you can get this resolved quickly. This is the first year I have an HSA. My employer went to two plans and they both have HSA's. I opted not to add my money to the account.

Re: Insurance annoyance

Carmie — Mon, 12 Feb 2018 00:26:00 GMT

I have never had an issue. My HSA gives me a debit card with my money loaded on it. I can just use it like a Credit Card at the drug store, Walmart, doctor’s office...anywhere and I have never had a purchase questioned.

Maybe your HSA company has been audited and they have to be more careful that the expenses are used properly.

Re: Insurance annoyance

Mom2Dogs — Mon, 12 Feb 2018 01:05:20 GMT

We just have to show documentation that we purchased the product and paid for it...and of course it is an allowed purchase....we fax in the paperwork and the money is deposited into our medical checking account.

Re: Insurance annoyance

Abrowneyegirl — Mon, 12 Feb 2018 01:23:10 GMT

@Carmie

Auditing the HSA company should have no effect if I the taxpayer use the money appropriately.

Before the account can be set up you have a read and sign explaining the allowed uses of the card.

I find the threat of withholding my money (they will suspend the card and the account) because they do not find the invoice the dentist sent to be "enough info" to be very far reaching.

The invoice for services renedered and paid should be enough.

Beyond that leave it to the IRS

Re: Insurance annoyance

Mominohio — Mon, 12 Feb 2018 01:26:00 GMT

Excuse my ignorance, but do people fund these with their own money, and do they do it as a tax break/shelter?

If so, it may seem that it isn't worth the 'benefit' of doing so, if you have to fight for payments, spend a lot of time and effort to fill out requests etc.

What is really the benefit to these accounts? (not a snark, truly not familiar with what the benefits might be).

Re: Insurance annoyance

ccassaday — Mon, 12 Feb 2018 01:36:24 GMT

When I was working anything that wasn’t the obvious copay from Doctor I had to submit for verification.

Re: Insurance annoyance

ccassaday — Mon, 12 Feb 2018 01:48:10 GMT

wrote:
Excuse my ignorance, but do people fund these with their own money, and do they do it as a tax break/shelter?

If so, it may seem that it isn't worth the 'benefit' of doing so, if you have to fight for payments, spend a lot of time and effort to fill out requests etc.

What is really the benefit to these accounts? (not a snark, truly not familiar with what the benefits might be).

Yes they take it out before taxes so you don’t pay taxes. I’d you decide to load say two thousand they devide that by how many paychecks you have in a year. That is what comes out of every paycheck. Most you lose if you don’t use it all so you have to be careful with what you put on. Some do roll over but some don’t. You have access to the entire amount right away at the beginning of the year. If you quit and have used money that you hadnt put in you may be required to pay it back. Say you put 2000 in and use it all in Jan. Then in Feb you quit. You will be required to pay back everything minus what has come out of your paycheck.

If it is not s obvious copay you should have to subjt a verification form. Otherwise people could use it on everything and not pay taxes. I never had s problem when I submitted verification for things like eyeglasses. I used the visa they gave me then faxed the form with my receipt. No big deal.

Re: Insurance annoyance

Abrowneyegirl — Mon, 12 Feb 2018 01:46:18 GMT

@Mominohio

There are few different variations now a days but I have a traditional one

The concept is to set aside money pre-tax to be used to cover out of pocket medical costs and expenses. The money has to be used for expenses occuring that year. If you do not use it you lose it.

The IRS establishes a list of 'allowable' medical' expenses.

The companies that manage the accounts charge the employer a fee for managing the account as well as share a portion of the unclaimed money for the year. They are VERY happy when there is money left over at the end of the year.

Any time I put money in an HSA I be sure to put in LESS than I need and use it all by March. I know I have about $10,000 in dental bills in 2018 but I put in less than $3000

There is a max you can put in the account for a year.

Re: Insurance annoyance

VaBelle35 — Mon, 12 Feb 2018 01:50:02 GMT

wrote:
I also have an HSA account and they have never questioned me on an expense. The only one that should question you regarding an expense is the IRS since they set the rules.

I have an HSA through work and I've never been asked to fill out a form.

I pay everything on a credit card to get points and I pay myself back every quarter out of the HSA account.

I have to indicate if it's a covered withdrawal or not when I request the payment. It's just a box I check.

With an FSA I have had to submit a claim to get the money back. That type of account requires a form and information from the doctor.

Re: Insurance annoyance

Moonchilde — Mon, 12 Feb 2018 02:17:04 GMT

wrote:
I have never had this issue with my HSA and I use it pretty much exclusively for the dentist too since I have no insurance for dental.

Why don't you just have the dentist office print the invoices for you and shut them up?

Or if they are constantly going to hound you for anything over$30 which is nonsense since I can't even remember a medical bill less than $30 transfer to a new bank.

All of the people that I knew who have HSAs always had to send in something to prove that they had actually gone to the dentist, medical supply, optometrist or wherever. Just a receipt. No one I knew had to show them a diagnosis or get anything more from the doctor than something that would show they’d been there.

I don’t think it’s unreasonable for the company to simply be sure you are spending it where you say you’re spending it, and not at the races or down-paymenting a new car.

Re: Insurance annoyance

Mominohio — Mon, 12 Feb 2018 02:30:31 GMT

wrote:
@Mominohio
There are few different variations now a days but I have a traditional one
The concept is to set aside money pre-tax to be used to cover out of pocket medical costs and expenses. The money has to be used for expenses occuring that year. If you do not use it you lose it.
The IRS establishes a list of 'allowable' medical' expenses.

The companies that manage the accounts charge the employer a fee for managing the account as well as share a portion of the unclaimed money for the year. They are VERY happy when there is money left over at the end of the year.

Any time I put money in an HSA I be sure to put in LESS than I need and use it all by March. I know I have about $10,000 in dental bills in 2018 but I put in less than $3000

There is a max you can put in the account for a year.

@Abrowneyegirl

Thank you for that explanation.

How does one know just how much they will need in a year's time? I mean it would be awful to loose money because you didn't get it used, that would defeat the whole purpose of getting the tax advantage.

I guess you have to anticipate possible expenditures and hope you have them? Sounds a bit risky to me, but we have really good insurance, no premiums no deductibles and co pays are like $10. So this must be for people with a lot of out of pocket medical expenses?