21 of 39 Before You Go How You Pay for Care Special Programs and Services Learn More Your HSA in Action: How It Works (continued) SALENA ASKS: How do I use my HSA for a visit to my doctor for strep throat? • S alena gives her medical ID card to the office personnel to make sure they know she is enrolled in the HSA Plan. • T he doctor determines that Salena has strep throat and prescribes a generic antibiotic. • S alena takes the prescription to her pharmacy and shows her MedImpact card to the pharmacist. • S he pays a $10 copay for the generic antibiotic using her HSA debit card. • A fter her appointment, the doctor’s office submits the claim to Blue Cross of Idaho to find out the amount Salena will need to pay. Blue Cross of Idaho will pay the doctor according to negotiated rates. • B lue Cross of Idaho sends Salena a statement or Explanation of Benefits (EOB) indicating the amount due to her doctor and detailing her deductible and other information. • S alena can use funds in her HSA to pay the bill, or she can choose to pay another way and save her HSA funds for future qualified expenses. • S alena decides to use her HSA funds. She uses Fidelity online bill pay to pay her doctor. SALENA ASKS: What happens if I do not have funds available in my HSA to pay for my claims? • I f her HSA is open, Salena can pay for her claims out-of-pocket now and reimburse herself later when there are adequate funds in the account. • S alena can increase her HSA contributions or make a lump-sum deposit with her next paycheck or directly through Fidelity to cover the cost of the claim. HECTOR ASKS: How does funding an HSA save on taxes? • Hector has family coverage with the HSA Plan. • H is total HSA pre-tax contribution for the year is $5,550. Every weekly paycheck, he contributes $106.73 to his HSA. • H ector’s federal tax bracket is 32%. Hector lives in California, where HSA contributions are taxed, so he does not save on state personal income tax.** • H is income tax savings on contributions this year are $5,550 x 0.32 = $1,554. ** Would you like to see how much you can save? Go to www.irs.gov or Bankrate to determine your federal tax bracket. Then, go to an online HSA Savings Calculator to determine how much you can save. Potential savings on state personal income tax can be difficult to determine. State tax brackets vary greatly, and some states have chosen to tax HSA contributions. Talk to your financial advisor or consult your state department of revenue for more information.
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