Thursday, October 11, 2007

What's not covered in an SMB HSA

HSAs can make employee paychecks go further, but what are some of the downsides to HSA?
HSA stands for Health Savings Account. For more information on HSA's visit the Wiki page on HSA

One downside is that many things are not covered. The following expenses are not eligible for reimbursement under a Health FSA, HRA or HSA:

Annual medical contract fees for exclusive provider care Arch supports, knee wrist braces (unless prescribed for a specific medical condition) Breast pumps (unless medically required to care for a premature infant) Blood pressure machines (unless prescribed by a physician as medically required for constant monitoring of blood pressure due to a
medical condition) Cosmetic surgery Dental bleaching or any other teeth whitening Domestic help fees (for services of a non-medical nature) Electric toothbrushes replacement brushes Electrolysis or hair removal Hair transplant Health club dues/memberships (unless part of a medically prescribed regimen to treat a specific condition) Humidifiers (unless prescribed by a physician to treat a specific medical condition) Insurance premiums of any kind (see below exceptions for HRA and HSA) Laetrile, even if prescribed by a doctor, is not reimbursable. Lens replacement insurance Marijuana, even if prescribed for medicinal purposes, is not reimbursable. Massage therapy (unless prescribed by a physician to treat an injury or trauma, or for rehabilitative purposes) Over the counter items which are items not categorized as a medicine or drug and may include, but are not limited to, hot pads, support
pillows, bandages, ACE wraps, nail clippers, pumice stones, feminine hygiene products, etc. are not reimbursable (unless used to treat
a specific medical condition). Over-the-counter toiletries or personal hygiene items which may include, but are not limited to shampoo,
toothpaste, conditioners, hand creams, deodorant, shaving cream, razors, dental floss, body powders, hair gels/sprays, make-up, nail
polish accessories, soap, mouthwash, etc. are not reimbursable. Physical therapy treatments for general well-being Supplements - The cost of supplements taken for general well-being are not reimbursable. However, the cost of supplements taken to
alleviate a specific medical condition is reimbursable. A physician should substantiate the diagnosis of a specific medical condition
and acknowledge that the supplement being used alleviates the medical condition diagnosed. Tuition for special schools (unless it is a special school to treat a specific condition such as blindness, speech, etc.) Union dues Vitamins - Daily multi-vitamins taken for general well-being are not reimbursable. Vitamins taken to treat a specific medical condition
are reimbursable. A diagnosis of the medical condition should accompany the vitamin claim. Prenatal vitamins obtained by prescription
are reimbursable. Weight loss machines
Source: Cigna

Here are some SMB employee and employer concerns we will review:
What are the excluded HSA Expenses?
What are the HSA Contribution Limits?
Is an HSA Taxable to the Employee or Employer?

What are some HSA things I should know?

Part 1 in 10 Year Case Study on an SMB

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