September 8th, 2009
Using an HSA to Pay for Lasik
A Health Savings Account can be used to pay for the high cost of Lasik surgery in San Diego. A Health Savings Account (HSA) is like a Flex Savings Account because qualified medical expenses, like Lasik eye surgery, can be paid for with pre-tax dollars. HSA has advantages over a Flex Savings Account because the funds you deposit will rollover at the end of the year, instead of being lost like a Flex Spending Account. Another advantage is that funds deposited into an HSA are property of the policy-holder, and if the policy is ever cancels, the policy holder can no-longer contribute to it, but does not lose the existing moneys.
Setting up an HSA
Unfortunately, an HSA must be set up in combination with a High-deductible health plan. This means that if you have a traditional health care plan, or no health care plan, an HSA cannot be used. But if you do have a HDHP, money from your HSA can be used to pay for your Lasik eye surgery. If you are ineligible to set up an HSA, look into an FSA, or HRA.
Deposits
Deposits can be made through an employer, or by the employee directly. It is best to deposit funds through an employer if you can. The money will go into your HSA before taxes are withheld. If you change jobs, the money will remain in your account as well. If you deposit the money directly, money goes in after taxes are withheld. The employee can then file this with the IRS and reduce their taxable income for the year.
Withdrawing funds
HSAs usually have multiple methods to withdraw funds; debit cards, checks, or reimbursement. Be sure to contact your provider to find out what options you have.
There are some other limits and restrictions to using an HSA, be sure to investigate before relying on one.