Health Savings Plans

[MSUSpartan]

Any of my fellow Americas know anything about using a HSP to buy diapers, and want to fill me in?

[msshendo]

Yes I have used them in the past. I am currently using a FSA (Flexible Savings Account). Both work very similar with some exceptions. Both can be funded by Pre-Tax payroll deduction. The HSA also allows in person deposits at the bank. Both will have a debit card access for purchases and paying doctors. The HSA allows checks to be written and in person withdrawals at the bank. Most websites that sell diapers take both cards for payment. I have used them at Northshore Care, XP Medical and many others, even some that have more of and AB/DL theme will still accept them because they are selling a medical supply. Incontinence supplies are still a covered expense under HSA/FSA laws in America so you shouldn't have any problem using the account to purchase supplies.

If you do make in person deposits or withdrawals from you HSA at the bank, remember to save your receipts to document what that was for. Deposts you want to keep as they will still count as Pre-Tax contributions and will be a deduction for your income taxes when filing. Withdrawals you want to document what the expense was for in case you get questioned so you can prove that it was for a qualified medical expense.

Let me know if you have any questions.

[MSUSpartan]

Thanks for the info. If I have more questions, I'll let you know.

My wife just started a new job, and they discussed this as her benefits meeting with HR. I've been thinking about switching back to disposables for regular use at night, and this seemed like a reasonable way to do it.

[msshendo]

If you are covered under your wife's insurance then you would be able to be covered with her HSA as well and her contribution limits would be greater to cover the family instead of just her.

[MSUSpartan]

Thats an interesting point. Most likely I won't be covered under her insurance. I have insurance provided by my employer instead. Is it not kosher for her to buy medical supplies for immediate family members not covered by her insurance? I assumed since this was effectively an IRS regulation, and we file our taxes together, it wouldn't be an issue.

[msshendo]

You know that is a good question. I have used both my wife's FSA card for my purchases and used mine for hers. The only thing you need to keep in mind is the contribution limits on HSA and FSA are designated for single or family with higher limits for family. You may want to talk to either a tax accountant or your benefits administrator to discuss specifics of how your plan will work.

[MSUSpartan]

I looked into it. HSA can be used for either spouse (assuming you file joint taxes) and any dependents claimed.