Author Topic: Getting reimbursed for things you paid for pre-tax  (Read 932 times)

sheepstache

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Getting reimbursed for things you paid for pre-tax
« on: September 28, 2015, 12:32:04 PM »
Another ethics question:

Through my employer, I have access to a health savings account so I can pay for things with pre-tax money. Through my union, I get up to $750 reimbursement for any uncovered medical expenses, like co-pays, etc.

You see where I'm going with this.

What if I pay for something with pre-tax dollars but then get reimbursed the full price on the receipt? On the one hand it feels like playing the system but on the other hand I did genuinely pay that amount listed on the receipt.

Related question: If you wouldn't do this, would you use the HSA at all? I'm thinking I can use it to pay the premiums for the union health plan but other than that I'm not likely to need more than $750 a year. Perhaps I'm overlooking a benefit?

terran

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Re: Getting reimbursed for things you paid for pre-tax
« Reply #1 on: September 28, 2015, 12:50:09 PM »
I'm not sure how this situation compares to being reimbursed by insurance, but an HSA is intended to pay for unreimbursed medical expenses, so you might not be making eligible HSA withdrawals anyway.

MDM

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Re: Getting reimbursed for things you paid for pre-tax
« Reply #2 on: September 28, 2015, 12:50:48 PM »
I'm thinking I can use it to pay the premiums for the union health plan....

Unfortunately, that's not allowed.  See http://www.irs.gov/publications/p969/ar02.html#en_US_2014_publink1000204081 and note "You cannot treat insurance premiums as qualified medical expenses unless [a few exceptions that don't seem to apply here]...."