Paying for Qualifying Expenses

There are several ways that you may access your Health Savings Account to pay for qualifying expenses.

  • You may elect to use either your debit card or checks to pay providers directly or,
  • You may go on line at your custodial bank and use the bank’s bill paying feature. With this feature, you may either pay a provider directly or reimburse yourself for expenses you have paid personally by making yourself the payee and the custodial bank will send you a check for whatever amount you request and then debit your account for that amount free of charge. You will receive a check in the mail payable to yourself in just a few days.

(Q) What if my medical service provider does not accept MasterCard/Visa?
(A) The HSA provides you with most of the features of any of any traditional custodial bank checking accounts. This means that you can use online bill-pay or write a check or make a withdrawal to pay for qualified medical expenses. If the custodian permits, you may make withdrawals from an ATM.

(Q) Is my HSA a savings account or a checking account?
(A) Your HSA is an interest bearing checking account that maintains the features of both savings and a checking account. When accessing your account on-line you should always select “checking”.

(Q) Does my card act like a credit card?
(A) No. Using a credit card is essentially making a short-term loan in the amount of the entire purchase price. You are then billed for the purchase within 30 days. Your card is strictly a Debit Card meaning you must have sufficient funds in your account to use your card.

(Q) How do I activate my card?
(A) If you are required to activate your card, instructions will be included in the package of information.

(Q) Canceling Your Card (A) Should your card be lost or stolen please contact FlexBank Administrators between 8 – 5 EST M – F at 937.299.5515 ~ 888.677.8373 or via e-mail Your HSA custodian may charge your account for a lost card fee.

(Q) Can I have more than one card?
(A) Yes. If you are opening an HSA and wish for someone else to have access to your account, please complete the section entitled “Power of Attorney”. You will receive an additional card for the person so designated in this section. The initial cards are free.

(Q) What if there are insufficient funds available in the HSA to make a payment for services rendered?
(A) HSA checks will bounce, debit card transactions will reject, and overdraft fees will be accessed where there are insufficient funds available. HSA owners should check their account balance via on-line access and/or monthly statements from the HSA custodian.

(Q) Must HSA trustees or custodians determine whether HSA distributions are used exclusively for qualified medical expenses?
(A) No. HSA trustees or custodians are not required to determine whether HSA distributions are used for qualified medical expenses. Individuals who establish HSAs make that determination and should maintain records of their medical expenses sufficient to show that the distributions have been made exclusively for qualified medical expenses and are therefore excludable from gross income.

Remember, distributions should only be used for qualifying medical, vision, hearing or dental expenses.