Making Payments with your HSA

Paying for those new eyeglasses, a prescription medication or an office visit with your physician is easy with your First Interstate HSA. Since you control the account, it is your responsibility to ensure you have the necessary funds in your HSA before making any payments from the account.

First Interstate offers you two options when you use your HSA to pay your medical expenses
First Interstate’s HSA VISA® Debit Card can be used anywhere VISA® debit cards are accepted to pay qualified medical expenses. So, as long as you have the necessary funds in your account, you can make quick and easy payments at your doctor’s office or at the pharmacy when you pick up your prescription. If you are paying bills from home or your physician or pharmacy does not accept VISA® debit cards, simply use our convenient HSA checks to make your payments.

What are Qualified Medical Expenses?
HSA funds can pay for any qualified medical expense, even if the expense is not covered by your HDHP.

For example, most health insurance does not cover the cost of over-the-counter medicines, but HSAs can.

To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness. Your health plan administrator or insurance company should be able to provide you with a list of qualified medical expenses covered under your health plan. In addition, the Federal Government provides information on “qualified medical expenses” in IRS Pub 502. This publication is available at your local IRS office or at the IRS.gov website.

Who decides whether the money I’m spending from my HSA is for a “qualified medical expense?”
Your HSA account belongs to you, not to your employer or your insurance company. Therefore, you are responsible for deciding whether the money you are spending is for a qualified medical expense. You should familiarize yourself with what qualifies as a medical expense and keep your receipts in case you need to support your expenditures or decisions during an IRS audit.

What if I don’t use my HSA for medical expenses?
If the money is used for purposes other than qualified medical expense, the expenditure will be taxable as income*. Individuals who are not disabled or over age 65 will also be subject to a 10% penalty. If you are over 65, the amount withdrawn will be taxable as income*, but will not be subject to any other penalties.

How can I track my expenditures?
You will receive a quarterly statement detailing all of your transactions. You can also view your transactions 24 hours a day, seven days a week on I-Bank, First Interstate’s internet banking program, at www.firstinterstatebank.com

Back to Account Information

 

Find out more information:

• What is a Health Savings Account?
• Who is eligible for an HSA?
• What are the tax benefits and regulations?
• HSA Contributions
• Making Payments with your HSA
• Contribution Guidelines