When is an HSA expense “incurred”?










10














Starting next year (2019), my family will be covered by an HSA plan. A member of my family is undergoing a medical treatment, starting on 12/27/2018, which will continue into March 2019. There is a flat fee for this service, which will be billed on 12/27. Which, of any of this, could be paid for using the HSA?



  • None?

  • Only services provided on or after 1/1/2019?

  • Only services provided after the date the HSA is "established", which might be a week or two into the New Year?









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    10














    Starting next year (2019), my family will be covered by an HSA plan. A member of my family is undergoing a medical treatment, starting on 12/27/2018, which will continue into March 2019. There is a flat fee for this service, which will be billed on 12/27. Which, of any of this, could be paid for using the HSA?



    • None?

    • Only services provided on or after 1/1/2019?

    • Only services provided after the date the HSA is "established", which might be a week or two into the New Year?









    share|improve this question









    New contributor




    Chad is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
    Check out our Code of Conduct.






















      10












      10








      10







      Starting next year (2019), my family will be covered by an HSA plan. A member of my family is undergoing a medical treatment, starting on 12/27/2018, which will continue into March 2019. There is a flat fee for this service, which will be billed on 12/27. Which, of any of this, could be paid for using the HSA?



      • None?

      • Only services provided on or after 1/1/2019?

      • Only services provided after the date the HSA is "established", which might be a week or two into the New Year?









      share|improve this question









      New contributor




      Chad is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
      Check out our Code of Conduct.











      Starting next year (2019), my family will be covered by an HSA plan. A member of my family is undergoing a medical treatment, starting on 12/27/2018, which will continue into March 2019. There is a flat fee for this service, which will be billed on 12/27. Which, of any of this, could be paid for using the HSA?



      • None?

      • Only services provided on or after 1/1/2019?

      • Only services provided after the date the HSA is "established", which might be a week or two into the New Year?






      united-states hsa medical-bill






      share|improve this question









      New contributor




      Chad is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
      Check out our Code of Conduct.











      share|improve this question









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      share|improve this question




      share|improve this question








      edited yesterday









      Ben Miller

      76.7k19207275




      76.7k19207275






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      asked yesterday









      Chad

      512




      512




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          3 Answers
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          active

          oldest

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          13














          There are a couple of specific criteria in the HDHP / HSA relationship.



          • You must be enrolled in an HDHP in order to contribute funds to an HSA on a tax preferred basis. You do not need to be enrolled in an HDHP to spend the HSA funds on qualified medical expenses on a tax preferred basis.



          • One of the qualifiers for an HSA eligible medical expense is the date of service, not the payment date or the billed date. The date of service must be after the HSA is established.



            • Along with a host of other qualifiers, I am assuming you have already determined that this treatment is a qualified medical expense and the only outstanding issue is the future dates of service relative to your prepayment date


          If this treatment is taking place on 12/27/2018 then you can not pay for it with funds in an HSA established on 1/1/2019. If, however, there will be 2019 treatments paid for by this prepayment, you should be able to reimburse the treatments with dates of service taking place after your HSA is established.



          Typically provider offices are aware of navigating these kinds of issues; particularly out-of-network providers that you pay directly. If you tell them what you're doing they can typically arrange things in a manner that's acceptable for HSA reimbursement. One viable solution is that as each specific treatment is rendered the the provider can issue an invoice indicating a billed amount for the specific treatment being applied against your prepayment.






          share|improve this answer


















          • 1




            I think your last sentence is the best solution if the provider is willing to do it.
            – TTT
            yesterday










          • Read this answer, re-read OP questions, this is a very good response.
            – CKM
            yesterday


















          0














          I assume that this HSA is being set up for payroll deductions or employer contributions. In this context it might be important to understand when the plan is established, and when it is funded. You can possibly open an HSA account with a small contribution, and then begin to add to it with payroll deductions. If you can establish the plan (open the account with a small contribution) before 12/27/18, then the expense could be paid with contributions made in 2019. I was required to open or establish my HSA account well before I could actually contribute to it. This was for administrative purposes by my employer. In that case I was not even required to make a contribution to open the account. See if you can get it set up before December 27.






          share|improve this answer








          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.

















          • What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
            – TTT
            8 hours ago


















          -1














          HSA qualified medical expenses are incurred on the date that the procedure/appointment/etc. occurs. In this case, 12/27/18 will be that date and will show up as the "date of service" or something similar on your insurance.



          When you fill out your insurance + HSA paperwork, it should have an "effective beginning date", which is usually January 1st but can also be something else. In that case, any expenses that occurred on or after January 1st (or the date specified) can be reimbursed to you or paid directly to the doctor.



          If your HSA becomes effective after 12/27/18 then any medical procedures done on that day will not count as reimbursable/payable from the HSA.






          share|improve this answer




















          • This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
            – Joe
            yesterday










          Your Answer








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          3 Answers
          3






          active

          oldest

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          3 Answers
          3






          active

          oldest

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          active

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          active

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          13














          There are a couple of specific criteria in the HDHP / HSA relationship.



          • You must be enrolled in an HDHP in order to contribute funds to an HSA on a tax preferred basis. You do not need to be enrolled in an HDHP to spend the HSA funds on qualified medical expenses on a tax preferred basis.



          • One of the qualifiers for an HSA eligible medical expense is the date of service, not the payment date or the billed date. The date of service must be after the HSA is established.



            • Along with a host of other qualifiers, I am assuming you have already determined that this treatment is a qualified medical expense and the only outstanding issue is the future dates of service relative to your prepayment date


          If this treatment is taking place on 12/27/2018 then you can not pay for it with funds in an HSA established on 1/1/2019. If, however, there will be 2019 treatments paid for by this prepayment, you should be able to reimburse the treatments with dates of service taking place after your HSA is established.



          Typically provider offices are aware of navigating these kinds of issues; particularly out-of-network providers that you pay directly. If you tell them what you're doing they can typically arrange things in a manner that's acceptable for HSA reimbursement. One viable solution is that as each specific treatment is rendered the the provider can issue an invoice indicating a billed amount for the specific treatment being applied against your prepayment.






          share|improve this answer


















          • 1




            I think your last sentence is the best solution if the provider is willing to do it.
            – TTT
            yesterday










          • Read this answer, re-read OP questions, this is a very good response.
            – CKM
            yesterday















          13














          There are a couple of specific criteria in the HDHP / HSA relationship.



          • You must be enrolled in an HDHP in order to contribute funds to an HSA on a tax preferred basis. You do not need to be enrolled in an HDHP to spend the HSA funds on qualified medical expenses on a tax preferred basis.



          • One of the qualifiers for an HSA eligible medical expense is the date of service, not the payment date or the billed date. The date of service must be after the HSA is established.



            • Along with a host of other qualifiers, I am assuming you have already determined that this treatment is a qualified medical expense and the only outstanding issue is the future dates of service relative to your prepayment date


          If this treatment is taking place on 12/27/2018 then you can not pay for it with funds in an HSA established on 1/1/2019. If, however, there will be 2019 treatments paid for by this prepayment, you should be able to reimburse the treatments with dates of service taking place after your HSA is established.



          Typically provider offices are aware of navigating these kinds of issues; particularly out-of-network providers that you pay directly. If you tell them what you're doing they can typically arrange things in a manner that's acceptable for HSA reimbursement. One viable solution is that as each specific treatment is rendered the the provider can issue an invoice indicating a billed amount for the specific treatment being applied against your prepayment.






          share|improve this answer


















          • 1




            I think your last sentence is the best solution if the provider is willing to do it.
            – TTT
            yesterday










          • Read this answer, re-read OP questions, this is a very good response.
            – CKM
            yesterday













          13












          13








          13






          There are a couple of specific criteria in the HDHP / HSA relationship.



          • You must be enrolled in an HDHP in order to contribute funds to an HSA on a tax preferred basis. You do not need to be enrolled in an HDHP to spend the HSA funds on qualified medical expenses on a tax preferred basis.



          • One of the qualifiers for an HSA eligible medical expense is the date of service, not the payment date or the billed date. The date of service must be after the HSA is established.



            • Along with a host of other qualifiers, I am assuming you have already determined that this treatment is a qualified medical expense and the only outstanding issue is the future dates of service relative to your prepayment date


          If this treatment is taking place on 12/27/2018 then you can not pay for it with funds in an HSA established on 1/1/2019. If, however, there will be 2019 treatments paid for by this prepayment, you should be able to reimburse the treatments with dates of service taking place after your HSA is established.



          Typically provider offices are aware of navigating these kinds of issues; particularly out-of-network providers that you pay directly. If you tell them what you're doing they can typically arrange things in a manner that's acceptable for HSA reimbursement. One viable solution is that as each specific treatment is rendered the the provider can issue an invoice indicating a billed amount for the specific treatment being applied against your prepayment.






          share|improve this answer














          There are a couple of specific criteria in the HDHP / HSA relationship.



          • You must be enrolled in an HDHP in order to contribute funds to an HSA on a tax preferred basis. You do not need to be enrolled in an HDHP to spend the HSA funds on qualified medical expenses on a tax preferred basis.



          • One of the qualifiers for an HSA eligible medical expense is the date of service, not the payment date or the billed date. The date of service must be after the HSA is established.



            • Along with a host of other qualifiers, I am assuming you have already determined that this treatment is a qualified medical expense and the only outstanding issue is the future dates of service relative to your prepayment date


          If this treatment is taking place on 12/27/2018 then you can not pay for it with funds in an HSA established on 1/1/2019. If, however, there will be 2019 treatments paid for by this prepayment, you should be able to reimburse the treatments with dates of service taking place after your HSA is established.



          Typically provider offices are aware of navigating these kinds of issues; particularly out-of-network providers that you pay directly. If you tell them what you're doing they can typically arrange things in a manner that's acceptable for HSA reimbursement. One viable solution is that as each specific treatment is rendered the the provider can issue an invoice indicating a billed amount for the specific treatment being applied against your prepayment.







          share|improve this answer














          share|improve this answer



          share|improve this answer








          edited yesterday

























          answered yesterday









          quid

          34.4k565117




          34.4k565117







          • 1




            I think your last sentence is the best solution if the provider is willing to do it.
            – TTT
            yesterday










          • Read this answer, re-read OP questions, this is a very good response.
            – CKM
            yesterday












          • 1




            I think your last sentence is the best solution if the provider is willing to do it.
            – TTT
            yesterday










          • Read this answer, re-read OP questions, this is a very good response.
            – CKM
            yesterday







          1




          1




          I think your last sentence is the best solution if the provider is willing to do it.
          – TTT
          yesterday




          I think your last sentence is the best solution if the provider is willing to do it.
          – TTT
          yesterday












          Read this answer, re-read OP questions, this is a very good response.
          – CKM
          yesterday




          Read this answer, re-read OP questions, this is a very good response.
          – CKM
          yesterday













          0














          I assume that this HSA is being set up for payroll deductions or employer contributions. In this context it might be important to understand when the plan is established, and when it is funded. You can possibly open an HSA account with a small contribution, and then begin to add to it with payroll deductions. If you can establish the plan (open the account with a small contribution) before 12/27/18, then the expense could be paid with contributions made in 2019. I was required to open or establish my HSA account well before I could actually contribute to it. This was for administrative purposes by my employer. In that case I was not even required to make a contribution to open the account. See if you can get it set up before December 27.






          share|improve this answer








          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.

















          • What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
            – TTT
            8 hours ago















          0














          I assume that this HSA is being set up for payroll deductions or employer contributions. In this context it might be important to understand when the plan is established, and when it is funded. You can possibly open an HSA account with a small contribution, and then begin to add to it with payroll deductions. If you can establish the plan (open the account with a small contribution) before 12/27/18, then the expense could be paid with contributions made in 2019. I was required to open or establish my HSA account well before I could actually contribute to it. This was for administrative purposes by my employer. In that case I was not even required to make a contribution to open the account. See if you can get it set up before December 27.






          share|improve this answer








          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.

















          • What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
            – TTT
            8 hours ago













          0












          0








          0






          I assume that this HSA is being set up for payroll deductions or employer contributions. In this context it might be important to understand when the plan is established, and when it is funded. You can possibly open an HSA account with a small contribution, and then begin to add to it with payroll deductions. If you can establish the plan (open the account with a small contribution) before 12/27/18, then the expense could be paid with contributions made in 2019. I was required to open or establish my HSA account well before I could actually contribute to it. This was for administrative purposes by my employer. In that case I was not even required to make a contribution to open the account. See if you can get it set up before December 27.






          share|improve this answer








          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.









          I assume that this HSA is being set up for payroll deductions or employer contributions. In this context it might be important to understand when the plan is established, and when it is funded. You can possibly open an HSA account with a small contribution, and then begin to add to it with payroll deductions. If you can establish the plan (open the account with a small contribution) before 12/27/18, then the expense could be paid with contributions made in 2019. I was required to open or establish my HSA account well before I could actually contribute to it. This was for administrative purposes by my employer. In that case I was not even required to make a contribution to open the account. See if you can get it set up before December 27.







          share|improve this answer








          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.









          share|improve this answer



          share|improve this answer






          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.









          answered 19 hours ago









          Jill

          1




          1




          New contributor




          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.





          New contributor





          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.






          Jill is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.











          • What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
            – TTT
            8 hours ago
















          • What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
            – TTT
            8 hours ago















          What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
          – TTT
          8 hours ago




          What state are you in? The rules for when an HSA is established are determined by the states, and AFAIK most states consider an HSA established on the date it is first funded, and that would mean you cannot establish an HSA before you are allowed to contribute to it. Apparently you were able to, which is interesting, and either your state allows it, or your employer bent the rules.
          – TTT
          8 hours ago











          -1














          HSA qualified medical expenses are incurred on the date that the procedure/appointment/etc. occurs. In this case, 12/27/18 will be that date and will show up as the "date of service" or something similar on your insurance.



          When you fill out your insurance + HSA paperwork, it should have an "effective beginning date", which is usually January 1st but can also be something else. In that case, any expenses that occurred on or after January 1st (or the date specified) can be reimbursed to you or paid directly to the doctor.



          If your HSA becomes effective after 12/27/18 then any medical procedures done on that day will not count as reimbursable/payable from the HSA.






          share|improve this answer




















          • This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
            – Joe
            yesterday















          -1














          HSA qualified medical expenses are incurred on the date that the procedure/appointment/etc. occurs. In this case, 12/27/18 will be that date and will show up as the "date of service" or something similar on your insurance.



          When you fill out your insurance + HSA paperwork, it should have an "effective beginning date", which is usually January 1st but can also be something else. In that case, any expenses that occurred on or after January 1st (or the date specified) can be reimbursed to you or paid directly to the doctor.



          If your HSA becomes effective after 12/27/18 then any medical procedures done on that day will not count as reimbursable/payable from the HSA.






          share|improve this answer




















          • This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
            – Joe
            yesterday













          -1












          -1








          -1






          HSA qualified medical expenses are incurred on the date that the procedure/appointment/etc. occurs. In this case, 12/27/18 will be that date and will show up as the "date of service" or something similar on your insurance.



          When you fill out your insurance + HSA paperwork, it should have an "effective beginning date", which is usually January 1st but can also be something else. In that case, any expenses that occurred on or after January 1st (or the date specified) can be reimbursed to you or paid directly to the doctor.



          If your HSA becomes effective after 12/27/18 then any medical procedures done on that day will not count as reimbursable/payable from the HSA.






          share|improve this answer












          HSA qualified medical expenses are incurred on the date that the procedure/appointment/etc. occurs. In this case, 12/27/18 will be that date and will show up as the "date of service" or something similar on your insurance.



          When you fill out your insurance + HSA paperwork, it should have an "effective beginning date", which is usually January 1st but can also be something else. In that case, any expenses that occurred on or after January 1st (or the date specified) can be reimbursed to you or paid directly to the doctor.



          If your HSA becomes effective after 12/27/18 then any medical procedures done on that day will not count as reimbursable/payable from the HSA.







          share|improve this answer












          share|improve this answer



          share|improve this answer










          answered yesterday









          Nosjack

          69314




          69314











          • This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
            – Joe
            yesterday
















          • This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
            – Joe
            yesterday















          This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
          – Joe
          yesterday




          This seems to reiterate what the OP already knows, and doesn't address the root of the issue, namely whether a procedure that takes place partially during the period the HSA applies to will qualify if billed in full beforehand.
          – Joe
          yesterday










          Chad is a new contributor. Be nice, and check out our Code of Conduct.









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