Ragoo said:

---

Thisguy1 said:

---

But it has to be for medical expenses right? And it's a process where you have to get reimbursed?

---

I have a debit card. I pay all my medical expenses right away with it. I don't want to worry about saving receipts and all that jazz.

---

I'm pretty sure you'd still need to save receipts to prove the debit card was used for medical expenses, if ever audited.

https://www.hrmorning.com/articles/hsa-requirements-receipts-recordkeeping/

Quote:

---

HSA reimbursements need matching receipts. When using an HSA debit card, retain receipts for each transaction as those expenses will be reported to the IRS, and you could be audited.

---

Thanks for the info! Ill be looking go increase my HSA contributions, not to worried about what my non existent social security will look like in 40 years as a recent grad lol

Definitely Not A Cop said:

---

permabull said:

---

I also agree it will be hard for most to take advantage of this. Saving 17k in an HSA when your annual income is under $150k is an above average savings rate, if you are also saving 3-6% in your 401k to get the company match and trying to take care of short term savings goals we are talking 20%+ savings rates which is getting into FIRE territory.

---

I think it's a perfect opportunity for the 20-40 male who never go to the doctor anyways to amass major contributions.

---

Correct. It's stupid for a healthy young person to not use a HDHP and HSA if they have the opportunity to do so. Just like with 401k matching, you are leaving money on the table by not doing it.

txaggie_08 said:

---

Ragoo said:

---

Thisguy1 said:

---

But it has to be for medical expenses right? And it's a process where you have to get reimbursed?

---

I have a debit card. I pay all my medical expenses right away with it. I don't want to worry about saving receipts and all that jazz.

---

I'm pretty sure you'd still need to save receipts to prove the debit card was used for medical expenses, if ever audited.

https://www.hrmorning.com/articles/hsa-requirements-receipts-recordkeeping/

Quote:

---

HSA reimbursements need matching receipts. When using an HSA debit card, retain receipts for each transaction as those expenses will be reported to the IRS, and you could be audited.

---

---

I've always assumed that the HSA debit card wouldn't be approved for a transaction if I tried to use it for something not medical related. I've certainly been wrong before. No way am I going to the trouble of holding on to receipts, regardless.

I'm a type 1 diabetic and we've been on a HDHP for years. You can either pay a guaranteed out of pocket $3500 - $4800 per year on premiums or you can pay a $3000 deductible before insurance pays anything in my case. We chose the HDHP primarily for the HSA. If you're reasonably healthy, the HDHP is the way to go.

Definitely Not A Cop said:

---

permabull said:

---

I also agree it will be hard for most to take advantage of this. Saving 17k in an HSA when your annual income is under $150k is an above average savings rate, if you are also saving 3-6% in your 401k to get the company match and trying to take care of short term savings goals we are talking 20%+ savings rates which is getting into FIRE territory.

---

I think it's a perfect opportunity for the 20-40 male who never go to the doctor anyways to amass major contributions.

---

this is exactly right. In your 20-30s you can stack cash and when you get older not worry about the bigger things that pop up. Kid breaks a bone? No worries. Etc

Petrino1 said:

---

Thisguy1 said:

---

I knew nothing about HSAs before I started frequenting this board. Why are they such an amazing thing? My mom worked in healthcare all her life and never recommended an HSA over the normal insurance.

---

To my knowledge it's the only account that offers a triple tax advantage: money is put in pre tax, the investments grow tax free, and no tax paid when you use it for medical expenses.

---

Correct.

For savers I would say it should be the the highest priority to max, and only after 401k (up to employer match) on the list.

We need to add HSAs to the Backdoor Roth thread pin that the admins won't let us have.

double aught said:

---

txaggie_08 said:

---

Ragoo said:

---

Thisguy1 said:

---

But it has to be for medical expenses right? And it's a process where you have to get reimbursed?

---

I have a debit card. I pay all my medical expenses right away with it. I don't want to worry about saving receipts and all that jazz.

---

I'm pretty sure you'd still need to save receipts to prove the debit card was used for medical expenses, if ever audited.

https://www.hrmorning.com/articles/hsa-requirements-receipts-recordkeeping/

Quote:

---

HSA reimbursements need matching receipts. When using an HSA debit card, retain receipts for each transaction as those expenses will be reported to the IRS, and you could be audited.

---

---

I've always assumed that the HSA debit card wouldn't be approved for a transaction if I tried to use it for something not medical related. I've certainly been wrong before. No way am I going to the trouble of holding on to receipts, regardless.

---

You think every credit card terminal knows exactly what you're buying at every swipe, and has the ability to decipher need?

Yeah, maybe.

Some people do not know how much money they're going to make in a year, how will they know their contribution limit beforehand?

If a family makes >$200,000 their allowed contribution goes back to the original amount allowed? Maybe I am missing something.

lobopride said:

---

Some people do not know how much money they're going to make in a year, how will they know their contribution limit beforehand?

If a family makes >$200,000 their allowed contribution goes back to the original amount allowed? Maybe I am missing something.

---

You can always back it out if you go over the limit in a year. I actually did that for 2024. I went $400 over the HSA contribution by accident because our plan changed midstream. I simply had Fidelity push the $400 into 2025s contribution.

My investment options are pretty crappy through the HSA provider at work. If I am understanding what people are saying correctly I can open an HSA account at Fidelity and transfer from my employer account to the Fidelity account to have better investment options? And I can do this as a current employee?

jamey said:

---

Ragoo said:

---

Why do you think the HDHP is a hard sell?

---

Because most people just look at how much it cost to go to a Dr, not the fact that they pay that upfront in their paychecks and it's garunteed to come out with a low deductible plan

---

And some people are just dumb and think someone is always trying to scam them.

I have a coworker that I'm pretty close with. He said he won't do the hdhp because they always max out the ppo plan. Showed him if you hit max out of pocket the hdhp is significantly better. Same max oop, lower premium, and company contributes $1,750 for a family for HSA. He still said nah, don't want to deal with that.

At our company, hdhp is the better option if you have no medical issues or if you hit max out of pocket. Ppo is better when you are between the deductible and max out of pocket.

No brainer for me. And with doing it as long as we have we have multiple years of max out of pocket in our accounts.

htxag09 said:

---

jamey said:

---

Ragoo said:

---

Why do you think the HDHP is a hard sell?

---

Because most people just look at how much it cost to go to a Dr, not the fact that they pay that upfront in their paychecks and it's garunteed to come out with a low deductible plan

---

And some people are just dumb and think someone is always trying to scam them.

I have a coworker that I'm pretty close with. He said he won't do the hdhp because they always max out the ppo plan. Showed him if you hit max out of pocket the hdhp is significantly better. Same max oop, lower premium, and company contributes $1,750 for a family for HSA. He still said nah, don't want to deal with that.

At our company, hdhp is the better option if you have no medical issues or if you hit max out of pocket. Ppo is better when you are between the deductible and max out of pocket.

No brainer for me. And with doing it as long as we have we have multiple years of max out of pocket in our accounts.

---

Even when you hit max out of pocket, high deductible is a wash

We hit the max out of pocket each year. Low deductible just spreads out over your weekly/.monthly paycheck premiums. Its basically only good for people who can't budget themselves

I will say, if you are on an HDHP, you do sort of by default have to pay closer attention to your bills and charges and be much more diligent.

A lot of medical billing is just sloppy. I questioned a bill from a doctors office once (I was being overcharged), and the woman at the clinic said "but you haven't met your deductible!" Like I would/should be willing to pay more just so I could hit that number. I told her I didn't want to hit it, and I think she thought I was the stupid one.

I think it's been good for me, but as others have said, a lot of people just want to have that payroll deduction taken out and not have to think about it.

If someone is dealing with a chronic medical condition, like cancer, I could see where this would be the case. They are overwhelmed enough by their diagnosis and just don't want to try and understand how the HDHP might be beneficial.

Google tells me that over 30% of HSAs are owned by millennials, so that's a good sign. But it also tells me only 10% of people are even eligible for HSAs because they don't have access to qualifying insurance plans.

Glad I read this thread, first I have heard of limits potentially being increased next year. We are in a HDHP with a HSA and max out every year, we live in UT so we also save on the 4.5% state income tax as well. If the "big beautiful plan" gets signed into law is this a sure thing to be included in it?

Yes, unlike 401ks, employers can't force you to keep the HSA money in their provider while you work there. When I was at Boeing they always suggested leaving a hundred dollars or so when your rolled it out periodically bc sometimes they assume you are closing the account if you roll then entire amount.

If you are interested in moving your money reach out the bank you want to move the money to and let them contact your current HSA provider to set up the transfer.

double aught said:

---

txaggie_08 said:

---

Ragoo said:

---

Thisguy1 said:

---

But it has to be for medical expenses right? And it's a process where you have to get reimbursed?

---

I have a debit card. I pay all my medical expenses right away with it. I don't want to worry about saving receipts and all that jazz.

---

I'm pretty sure you'd still need to save receipts to prove the debit card was used for medical expenses, if ever audited.

https://www.hrmorning.com/articles/hsa-requirements-receipts-recordkeeping/

Quote:

---

HSA reimbursements need matching receipts. When using an HSA debit card, retain receipts for each transaction as those expenses will be reported to the IRS, and you could be audited.

---

---

I've always assumed that the HSA debit card wouldn't be approved for a transaction if I tried to use it for something not medical related. I've certainly been wrong before. No way am I going to the trouble of holding on to receipts, regardless.

---

I have never heard of the IRS requesting receipts except in cases where people pull 20k+ from their HSA in a single year and in that case they just sent a letter asking for an explanation and they accepted the written explaniation without without much documentation needed so I think the average $50 Walgreens swipe will be fine.

Thisguy1 said:

---

But it has to be for medical expenses right? And it's a process where you have to get reimbursed?

---

The process is you claim it was an eligible expense when you file your taxes at the end of the year and that's all you have to do unless the IRS asks more questions

Once you are 65 and on Medicare part b your premium will be taken from your social security check. This amount will be shown on your ssa-1099 and that portion is hsa reimbursable so even if you are super healthy you will eventually have plenty of eligible expensives down the line.

permabull said:

---

The new tax bill makes some interesting changes to HSAs doubling how much you can put into them each year, but there are two catches.

1) the extra contributions must come from a payroll deduction
2) They phase out for high income

Households making 150k and saving into an HSA family plan will be able to contribute a little over $17k to an HSA.

The kicker is at these income levels, these contributions if made with payroll deduction also avoid payroll tax which is split between you and your employer, so you save by not paying 7.65% and your employer saves the same dollar amount. This is not true for 401k where you (and your company) have to pay this payroll tax.

The fact that this bonus fades away for high income (where payroll tax is already capped so no savings for the employer or employee) and the fact it only applied to people who can make payroll contributions to an HSA leads me to believe it was companies looking to save on taxes that pushed this change.

I wouldn't be surprised to see employers pushing more education about how HSA can be used just like 401ks after age 65 to their employees and also start to shift the 401k match into the HSA side of the house rather than 401k to encourage more people to save there instead.

---

I'm guessing that means that health care costs aren't coming down anytime soon.

Ha. No, they won't.

TXTransplant said:

---

Anecdotal with coworkers. Our HDHP was initially free (it's not any more), and even then participation was low. Now it has a cost (although it's significantly cheaper than the next cheapest option).

People like the safety blanket of paying premiums rather than large medical bills and having fixed copays. This may be a generational thing. Most of the coworkers that aren't interested are older than I am (I'm 46). Not sure what younger generations think of it. But the way people of all generations gripe about medical costs, I'm not sure they'd like having to pay OOP for basically everything but preventative care.

Also our HDHP has very limited prescription drug coverage, so if you take expensive prescription drugs, it's not always a great option. Not sure what how much this varies on other HDHPs.

---

is there a defined amount for 'high deductible'?

My wife's current plan is $280/mo for her + kids, the regular is $631. She get s $100/mo from employer into HSA.

So HDHP is $3360 per year in premium, $1200 back from employer, $3300 deductible
Regular is $7572 plus co pays.
OOP max is $4k vs $5k.

I have no idea how someone could make sense of the PPO plan as a better choice financially speaking. The premium alone is more than premium+deductible, let alone the employer contribution credit.

Google tells me that for 2025 the IRS defines an HDHP as a plan having a deductible of at least $1650 for individuals/$3300 for family and max OOP of $8300 for individuals/$16600 for family.

Those minimum deductibles aren't too bad, but I think those max OOP numbers prob scare a lot of people. And they vary from plan to plan. My max OOP isn't that high ($4500 per person/$9000 total).

Also, some HDHPs (mine included) only cover basic prescriptions. So if you are on something expensive, that also scares people.

When I was switching to the HDHP and trying to compare, BCBS could not/refused to tell me what prescription costs would be (for a recurring medication). That was VERY frustrating.

TXTransplant said:

---

When I was switching to the HDHP and trying to compare, BCBS could not/refused to tell me what prescription costs would be (for a recurring medication). That was VERY frustrating.

---

My recurring meds are a different price every time I refill them. I feel like cvs and uhc just have a random number generator for Rx prices on my plan. Some months its $10 some its $44 and sometimes its free. Makes no sense.

I absolutely despise the CVS prescription service tied to my plan. We are highly incentivized to use it. Problem is, CVS pharmacies are freaking terrible, and if you have a question/problem related to your prescription benefits, the CVS employees shrug their shoulders and say "Can't help you because that's a different company".

With healthcare costs continuing to rise, I wouldn't be surprised if most employers start to only offer an HDHP to offset some of their costs.

put money in HDHP (tax free)
pay for expenses out of pocket
save receipts
let HDHP grow (tax free)
whenever you need some extra cash, compile receipts and make claim from your HDHP (tax free)

TXTransplant said:

---

I absolutely despise the CVS prescription service tied to my plan. We are highly incentivized to use it. Problem is, CVS pharmacies are freaking terrible, and if you have a question/problem related to your prescription benefits, the CVS employees shrug their shoulders and say "Can't help you because that's a different company".

---

Following is happening to me live at Walgreens right now:

Getting my second shingles shot. Complete the health questionnaire on the Walgreens app in order to schedule the appointment.

Get to Walgreens and have to complete the same f'ing form on paper again.

Just did all of this with the lady at the counter. And now the pharmacist is running me through the same **** the lady did. So three f'ing times now I've answered the same questions.

Nothing makes me more insane than this ***** Just quit making me do **** in the app as if you are saving me time and planning ahead when you really aren't. And why am I doing this twice in person back to back?

And I've now been here 30 minutes with no one in front of me and still no shot happening.

Yeah CVS is terrible now in my area. They closed a third of the store and just pushed all the work on the ones that stayed open and it's just a chaotic mess when you go in there.