General
What is HSA?
A Health Savings Account (HSA) is a special savings account that allows you to set aside money for medical expenses. It's like a personal piggy bank for healthcare costs. The money you put into an HSA is tax-deductible, meaning you don't pay taxes on it, and it can be used to pay for things like doctor's visits, prescriptions, and other qualified medical expenses. Plus, any money you don't spend rolls over from year to year, so it's there when you need it.
What is FSA?
A Flexible Spending Account (FSA) is a special account that lets you set aside money from your paycheck before taxes to pay for eligible healthcare and dependent care expenses. It's like a personal budget for medical and childcare costs. You can use the money in your FSA to cover things like doctor's visits, prescriptions, and daycare expenses. Plus, the money in your FSA is tax-free, so you can save money on your healthcare and childcare expenses.
Eligibility
What expenses can I use my HSA/FSA funds to cover?
You can use your HSA/FSA funds to cover a wide range of qualified medical expenses, including doctor's visits, prescriptions, hospital bills, and many other healthcare-related costs.
Always check with your plan administrator if you have questions about whether an expense is covered.
How do I know if a service is HSA/FSA-eligible?
You can typically check if a service is HSA/FSA-eligible by asking your healthcare provider or checking with your plan administrator. Additionally, the IRS provides guidelines on eligible expenses, which can help you determine if a service qualifies for HSA/FSA coverage.
What happens if I use my HSA/FSA funds for non-qualified medical expenses?
If you use your HSA/FSA funds for non-qualified medical expenses, you may have to pay taxes on the amount you spent, plus a penalty.
What documentation do I need to keep for HSA/FSA purchases?
For HSA/FSA purchases, it's important to keep receipts or other documentation showing the date, amount, and nature of the expense. This helps verify that the purchase was for a qualified medical expense.
Reimbursement
How do I request reimbursement from my HSA after using Kounsel’s services?
Reimbursement from a Health Savings Account (HSA) or Flexible Spending Account (FSA) typically involves the following steps:
- Pay for a Qualified Medical Expense: You pay for a qualified medical expense out-of-pocket.
- Submit a Claim: You submit a claim to your HSA or FSA provider. This usually involves filling out a form and providing proof of the medical expense. The proof could be a receipt or invoice that includes the date of the service or purchase, the amount, and a description of the service or product.
- Reimbursement: If the expense is eligible, you will be reimbursed from your HSA or FSA account.
How do I request reimbursement from my FSA after using Kounsel’s services?
Remember, the IRS has strict rules on how HSA/FSA expenses can be reimbursed, so it’s really important to follow the instructions provided by your HSA or FSA provider. Always keep your receipts and records of your medical expenses for tax purposes.
- Your HSA Reimbursement Cheat Sheet (hsastore.com)
- Health Care Options, Using a Flexible Spending Account FSA | HealthCare.gov
Can I still use Kounsel if I don’t have an HSA/FSA account?
Yes, you can still use Kounsel even if you don't have an HSA/FSA account. We accept other methods of payment, including insurance.
