Do I pay my dentist bill with HSA card?

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knightrider
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Do I pay my dentist bill with HSA card?

Post by knightrider » Mon Feb 12, 2018 11:26 am

I started a new job and my dental insurance works differently than what I am used to. Instead of paying the dentist directly the insurance company sends me a check. Then I have to pay the dentist bill directly. Do I pay the dentist using my HSA card or my personal credit card? The insurance is Delta Dental PPO .

For example, I had my first teeth cleaning and x-rays. The cost was ~$320. I got a check for $280. So I owe the dentist $320.

onourway
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Re: Do I pay my dentist bill with HSA card?

Post by onourway » Mon Feb 12, 2018 11:31 am

Our plan works in a similar way. I pay the dentist with my regular credit card (points!) and then wait for the reimbursement check to come in. I then reimburse myself the difference from the HSA and keep record of this transaction. This is cleaner to me than paying from the HSA and then receiving a reimbursement which I must then put back into the HSA account, which, from what I understand, requires a special form stating that this is a 'return of a previous withdrawal.'

jebmke
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Re: Do I pay my dentist bill with HSA card?

Post by jebmke » Mon Feb 12, 2018 11:33 am

You owe the $320. The difference ($320-280) can be reimbursed from the HSA. Do not use the HSA debit card to pay the bill or the result potentially is that you have a non-qualified distribution from the HSA.
When you discover that you are riding a dead horse, the best strategy is to dismount.

deltaneutral83
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Re: Do I pay my dentist bill with HSA card?

Post by deltaneutral83 » Mon Feb 12, 2018 11:34 am

Should always pay with credit card regardless because of whatever you get back from it. I do not know the ins and outs if it is ok to make a claim against your HSA for the portion your insurance company reimburses you ($280), you would definitely be able to withdraw the $40 you actually spent. t is nice to pay up front and have your insurance reimburse you as you can/could rack up some credit card rewards assuming there's no added fee for using cc.

knightrider
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Re: Do I pay my dentist bill with HSA card?

Post by knightrider » Mon Feb 12, 2018 11:34 am

onourway wrote:
Mon Feb 12, 2018 11:31 am
Our plan works in a similar way. I pay the dentist with my regular credit card (points!) and then wait for the reimbursement check to come in. I then reimburse myself the difference from the HSA and keep record of this transaction. This is cleaner to me than paying from the HSA and then receiving a reimbursement which I must then put back into the HSA account, which, from what I understand, requires a special form stating that this is a 'return of a previous withdrawal.'
Interesting. I suppose I can just pay the dentist with two cards then, with the HSA card paying the difference.

onourway
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Re: Do I pay my dentist bill with HSA card?

Post by onourway » Mon Feb 12, 2018 11:36 am

knightrider wrote:
Mon Feb 12, 2018 11:34 am

Interesting. I suppose I can just pay the dentist with two cards then, with the HSA card paying the difference.
I'm not sure why you need to use two cards? Just pay the entire thing on your own credit card. Then write yourself a check or make an ACH transfer from the HSA to reimburse yourself the difference between what insurance pays and what you owe.

thangngo
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Re: Do I pay my dentist bill with HSA card?

Post by thangngo » Mon Feb 12, 2018 11:38 am

onourway wrote:
Mon Feb 12, 2018 11:31 am
Our plan works in a similar way. I pay the dentist with my regular credit card (points!) and then wait for the reimbursement check to come in. I then reimburse myself the difference from the HSA and keep record of this transaction. This is cleaner to me than paying from the HSA and then receiving a reimbursement which I must then put back into the HSA account, which, from what I understand, requires a special form stating that this is a 'return of a previous withdrawal.'
^ this. I paid CC to earn 2% points and submit a claim online and get it direct deposited to checking account.

knightrider
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Re: Do I pay my dentist bill with HSA card?

Post by knightrider » Mon Feb 12, 2018 11:46 am

onourway wrote:
Mon Feb 12, 2018 11:36 am
I'm not sure why you need to use two cards? Just pay the entire thing on your own credit card. Then write yourself a check or make an ACH transfer from the HSA to reimburse yourself the difference between what insurance pays and what you owe.
I am hoping to eliminate the step of reimbursing myself by using two cards. I assume that requires more button clicks and also requires some documentation in case of audit. Otherwise anybody can transfer money from HSA to bank account ..

onourway
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Re: Do I pay my dentist bill with HSA card?

Post by onourway » Mon Feb 12, 2018 11:48 am

knightrider wrote:
Mon Feb 12, 2018 11:46 am
onourway wrote:
Mon Feb 12, 2018 11:36 am
I'm not sure why you need to use two cards? Just pay the entire thing on your own credit card. Then write yourself a check or make an ACH transfer from the HSA to reimburse yourself the difference between what insurance pays and what you owe.
I am hoping to eliminate the step of reimbursing myself by using two cards. I assume that requires more button clicks and also requires some documentation in case of audit. Otherwise anybody can transfer money from HSA to bank account ..
If your reimbursement check generally arrives in time for you to have it before you get the bill from the dentist (so you know what the split is), this might work, although I'm not sure how you would pay them with two cards - most of the paper forms or online health systems I've used do not have the facility to handle this.

I have my HSA account linked to my checking account. I log in and initiate a transfer. I note the purpose of the transfer in my accounting software, and on the bill that I file for each year's medical expenses.

PeterParker
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Re: Do I pay my dentist bill with HSA card?

Post by PeterParker » Mon Feb 12, 2018 12:58 pm

Otherwise anybody can transfer money from HSA to bank account ..
Yeah, it's quite easy to do. And many people do it. I guess you're nervous because you don't want to withdraw a dollar too many and get in tax trouble, but eh, that's the nature of taxes in general. I'm sure so people flub a few dollars here and there.

Just do it all at the end of the year. Far easier, in my opinion. Use your reward credit card for all medical. At the end of the year, just go through and see how much you want to reimburse from your HSA (legally).

This will be healthcare net bills, dental net, vision net, contacts, eyeglasses, eye-exams, etcetera.

pshonore
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Re: Do I pay my dentist bill with HSA card?

Post by pshonore » Mon Feb 12, 2018 2:42 pm

You need to know what the Ins company "approved". For example, he charges $100 for proc X and he is a participating dentist, they might approve $60. If they send a check for $60 to you, that's what you owe him, not $100. Usually the EOB will also show what you owe him. Since you were reimbursed the $60, I do not think that's a qualified medical expense for HSA purposes. Anything you pay above the reimbursement would be eligible

aristotelian
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Re: Do I pay my dentist bill with HSA card?

Post by aristotelian » Mon Feb 12, 2018 2:46 pm

knightrider wrote:
Mon Feb 12, 2018 11:46 am
onourway wrote:
Mon Feb 12, 2018 11:36 am
I'm not sure why you need to use two cards? Just pay the entire thing on your own credit card. Then write yourself a check or make an ACH transfer from the HSA to reimburse yourself the difference between what insurance pays and what you owe.
I am hoping to eliminate the step of reimbursing myself by using two cards. I assume that requires more button clicks and also requires some documentation in case of audit. Otherwise anybody can transfer money from HSA to bank account ..
Doing the HSA debit card does not alleviate you from the documentation requirement.

toofache32
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Re: Do I pay my dentist bill with HSA card?

Post by toofache32 » Mon Feb 12, 2018 11:33 pm

pshonore wrote:
Mon Feb 12, 2018 2:42 pm
You need to know what the Ins company "approved". For example, he charges $100 for proc X and he is a participating dentist, they might approve $60. If they send a check for $60 to you, that's what you owe him, not $100. Usually the EOB will also show what you owe him. Since you were reimbursed the $60, I do not think that's a qualified medical expense for HSA purposes. Anything you pay above the reimbursement would be eligible
I don't think we know if the dentist is in-network or not unless I missed it, which would determine if the charges are lowered to the "allowed" Delta rates. Delta Dental is notorious for refusing to honor the assignment of benefits in claims, so they pay the patient instead of the dental office.

retiringwhen
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Re: Do I pay my dentist bill with HSA card?

Post by retiringwhen » Tue Feb 13, 2018 8:30 am

knightrider wrote:
Mon Feb 12, 2018 11:46 am
onourway wrote:
Mon Feb 12, 2018 11:36 am
I'm not sure why you need to use two cards? Just pay the entire thing on your own credit card. Then write yourself a check or make an ACH transfer from the HSA to reimburse yourself the difference between what insurance pays and what you owe.
I am hoping to eliminate the step of reimbursing myself by using two cards. I assume that requires more button clicks and also requires some documentation in case of audit. Otherwise anybody can transfer money from HSA to bank account ..
I tried this and all I got were headaches trying to reconcile the HSA card transactions to expenses,reimbursements, etc.

I went to the approach others are suggesting of using my personal credit card with cash back to pay the dentist. Then I cash the check from delta and later after receiving the EOB from Delta, submit it to my HSA for reimbursement directly to my checking account for the unreimbursed balance. It is much easier to track the money trail this way. I found reconciling the HSA card transactions much harder or to deal with and prone to error by my HSA custodian (Healthequity).

Not what risk on transfers you are concerned about.

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