Do you have a Health Savings Account (HSA)? If so, here is some good news!
If you have an HSA attached to your deductible health plan, you can use it to get reimbursed for your years-old medical expenses.
Also, HSAs have another benefit – there is no time limit on getting the reimbursement. As long as you had the Health Savings Account open when you have accumulated medical bills, you will get the reimbursement for the cost even years after the fact.
That is important, as Health Saving Accounts have a yearly contribution limit. It means that if you have high expenses one year, you will still be getting reimbursed for that excess cost with contribution in coming years.
The annual limit in 2019 is $3,500 for individuals, $7,000 for families, and $1,000 more if you are above 55.
For instance, you have decided to contribute $1,000 to your HSA last year, but had unexpected medical expenses costing around $4,000 out of your pocket. This year, you can contribute the maximum to your HSA and get reimbursed for the expenses of last year. The only prerequisite here is that you opened the account before you incurred the costs.
It is imperative that you keep accurate medical records to document the transactions. It could be helpful in case if you are audited. The first and foremost step is to keep every copy of your medical bill that you have paid from your pocket.
You should be absolutely fine as long as the dates are on the medical bills or receipts.
So, if you have an account and medical expenses that you did not get reimbursed for the last year or in years prior, round up all of your receipts and send them to your healthcare provider now. Meanwhile, you may be able to increase your contributions during the year. However, you may not be able to do so if your elections are made as a pre-tax salary deduction through your employer plan. Please keep in mind that when you are setting up HSA contributions for coming years.
