Pay medical bills with CC

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My health insurance through my employer is a family plan HSA. $4000 deductible, $8000max out of pocket. 80/20 after the deductible is met. We contribute just under the federal maximum of $6250.

My wife is due to give birth in 3 weeks to our second child.

I currently have two credit cards that have Cash Back bonuses after the initial spend requirement. One is 250 after 2000 spend. The other is 400 after 1000 spend.

Is it possible to pay the hospital with both of these credit cards then get a reimbursement from the HSA to pay off CC with pretax dollars? Then I can cash in on the points rewards.

Even with any CC fees to pay the Hospital bills, it seems I would come out ahead.

Any critiques, criticisms, or ideas of my plan are appreciated.

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Yes, that's how I do it. So far I never use the HSA to pay directly. Just take the money out from you HSA account. Be sure to keep all the receipts.

t0s9476 said:   Yes, that's how I do it. So far I never use the HSA to pay directly. Just take the money out from you HSA account. Be sure to keep all the receipts.

Same here. We pay for office visits, Rx, hospital, pathologist, anesthesiologist, etc, with rewards card. I have a checkbook for the HSA account and deposit a check to my local credit union to cover the credit card if needed.

Most years I don't take reimbursement if the bills have been small, I just let them add up.

Taking the reimbursement generates another tax form to deal with.

L4MC

What are the CC fees you're referring to? Most hospitals dont charge a fee to accept credit cards.

TheWalL said:   What are the CC fees you're referring to? Most hospitals dont charge a fee to accept credit cards.

I wasn't sure if there would be any convenience fees similar to those charged by some utility companies to process a credit card. Its good to know there aren't any.

TheWalL said:   What are the CC fees you're referring to? Most hospitals dont charge a fee to accept credit cards.

The hospital where I live takes credit cards, and gives a 10% discount if you pay within 30 days. I guess it's because so many people don't pay at all.

Looking4morecents said:   t0s9476 said:   Yes, that's how I do it. So far I never use the HSA to pay directly. Just take the money out from you HSA account. Be sure to keep all the receipts.

Same here. We pay for office visits, Rx, hospital, pathologist, anesthesiologist, etc, with rewards card. I have a checkbook for the HSA account and deposit a check to my local credit union to cover the credit card if needed.

Most years I don't take reimbursement if the bills have been small, I just let them add up.

Taking the reimbursement generates another tax form to deal with.

L4MC

Interesting - I wasn't aware that a reimbursement made a tax consequence at all.

ankitgu said:   Looking4morecents said:   t0s9476 said:   Yes, that's how I do it. So far I never use the HSA to pay directly. Just take the money out from you HSA account. Be sure to keep all the receipts.

Same here. We pay for office visits, Rx, hospital, pathologist, anesthesiologist, etc, with rewards card. I have a checkbook for the HSA account and deposit a check to my local credit union to cover the credit card if needed.

Most years I don't take reimbursement if the bills have been small, I just let them add up.

Taking the reimbursement generates another tax form to deal with.

L4MC

Interesting - I wasn't aware that a reimbursement made a tax consequence at all.


Actually, I worded that wrong. If you contribute to a Health Savings Account you have to complete IRS Form 8889 Part I, if you take a distribution you complete Part II.

L4MC

edit to add link http://www.irs.gov/pub/irs-pdf/f8889.pdf

with my FSA, i have a kind of credit card to use. is anyone familiar with this setup and if i could use my other cc, yet somehow get the funds from my FSA card to fund the charges that would go onto my other cc? thanks,

matthewk said:   with my FSA, i have a kind of credit card to use. is anyone familiar with this setup and if i could use my other cc, yet somehow get the funds from my FSA card to fund the charges that would go onto my other cc? thanks,

My HSA allows me online transfers to my checking account from which my cc is paid.

matthewk said:   with my FSA, i have a kind of credit card to use. is anyone familiar with this setup and if i could use my other cc, yet somehow get the funds from my FSA card to fund the charges that would go onto my other cc? thanks,Check your plan on how to do a submission when the card is not used

ellory said:   matthewk said:   with my FSA, i have a kind of credit card to use. is anyone familiar with this setup and if i could use my other cc, yet somehow get the funds from my FSA card to fund the charges that would go onto my other cc? thanks,Check your plan on how to do a submission when the card is not used

Yes. With ours (e-flex now, and ceridian before), they send you a credit card, but you dont have to use it. Just pay with your rewards card, ask for a detailed bill, or wait for the EOB, and then send the EOB. I can scan it and do all the submissions online. I just accumulate them towards the end of the year, but payoff the reward card every month.

I suspect the included cards are debit cards, not credit.

EradicateSpam said:   I suspect the included cards are debit cards, not credit.

Yes, mine is a mastercard debit.

I use the debit card they give me for my HSA.
I don't have to submit the receipts if I use it, and the credit card rewards for me aren't worth the hassle of doing the forms and scanning the receipts.



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