Page 13 - 2019 Benefits Enrollment

What Expenses are Eligible for Reimbursement From an
HSA? Always remember to
keep your receipts! If
An HSA may reimburse IRS qualiied medical expenses incurred by you, the IRS audits you to
the account holder, your spouse and your dependents (even if the spouse make sure you used
and dependent children are not enrolled in a CDHP). Qualiied medical your HSA for eligible
expenses are deined by the IRS in IRC Sec. 213(d). expenses, you will need
to provide receipts in
In addition to qualiied medical expenses, the following insurance order to avoid paying
premiums may be reimbursed from an HSA: the penalty.

„ COBRA premiums
„ Health insurance premiums while receiving unemployment beneits

„ Qualiied long-term care premiums (the reimbursable amount
depends on one’s age)

„ Any health insurance premiums paid, other than for a Medicare
supplemental “Medigap” policy, by individuals age 65 and over

Can Ineligible Expenses be Reimbursed From an HSA?
Yes. Neither the trustee, bank, insurance company nor the employer

are required to determine if a claim submitted for reimbursement is a
qualifying medical expense.

If you are audited and are found to have withdrawn funds from your

HSA for non-qualifying medical expenses, this amount will be subject
to a 20% penalty. Where funds are distributed as a result of the account
beneiciary’s death, disability, or after he or she is eligible for Medicare, the
20% penalty does not apply.

Distributions made from an HSA to reimburse the account beneiciary
for qualiied medical expenses are excluded from gross income.

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