Can I modify my annual HSA contribution?
You can modify your HSA annual contribution election at any time during the year except in December when the changes will be frozen for year-end close. Go to My Health Benefits and follow the instructions linked below to modify your annual contribution.
Do I pay for qualified medical expenses at the time of service?
It generally makes sense for your service provider to first submit your claim to your health plan for payment. After your claim is processed, you will then receive an Explanation of Benefits from the health insurance carrier or claims payer that will show the amount, if any, that you owe the service provider. You can then make those payments through any of the payment options available for your Fidelity HSA.
Also, if there are not enough funds in your HSA to cover a high expense, you can pay the medical bill with “regular after-tax money” and then reimburse yourself from your HSA once your account has enough funds. The key is the money doesn’t already have to be in the HSA at the time of the expense. You just must be in a HDHP and contributing to an HSA when the medical costs are incurred.
Can I use my HSA for nonqualified medical expenses?
Your Fidelity HSA is intended to be used for qualified medical expenses. Any distribution taken from your HSA to pay for a nonqualified medical expense must be included in your gross income for tax purposes and may be subject to an additional 20% penalty.
Can I use my HSA for my dependents?
You can use your HSA to pay for qualified medical expenses incurred by your dependents, provided that they are considered dependents for federal tax purposes.
What is an HDHP and how does it work?
A high deductible health plan (HDHP) is a health plan that has a lower premium and a higher deductible. Here at Intel, HDHPs have no monthly premium. The deductible is the amount of medical expenses you must pay before health plan coverage kicks in. An HSA is great to pair with an HDHP because you can use pre-tax money to cover your deductible, which can help reduce your tax bill.
Can I contribute to a Health FSA if I’m contributing to an HSA?
If you are enrolled in an Intel HDHP and are not contributing to an HSA, then you can contribute to a Health FSA. This can be used for eligible out-of-pocket medical, prescription drug, dental and vision expenses.
If you are enrolled in an Intel HDHP and are contributing to an HSA, then you can contribute to a Limited Use Health FSA that can be used for vision and dental expenses only.