Can I use my HSA to pay for over-the-counter (OTC) drugs?
In order to be eligible for reimbursement under your HSA, an OTC remedy would have to be prescribed by your doctor. Take the prescription to the pharmacy counter of a participating retail store when you buy the item. A prescription number must be assigned to the purchase. This way, your original purchase and refills (if any) will be eligible for payment for the item with no further need for substantiation.
What happens if I use my HSA to pay for an item or service that was already covered by another source?
This practice, known as “double-dipping,” could have serious tax implications and/or result in the revocation of your health funding arrangement. By using your HSA, you are agreeing that you have not been and will not be reimbursed from any other source for those expenses. If you are covered by another form of insurance in addition to CDPHP, please let us know by completing a coordination of benefits form.
What happens to HSA funds that I don’t spend during the plan year?
There are no “use it or lose it” rules and no time limit on spending. HSA funds are portable (i.e., you can take them with you if you leave your job). The account earns interest tax-free, and expenditures are never taxed as long as they are for qualified medical expenses for the employee or a dependent.
Where can I learn more?
Your employer will choose a banking partner to administer your HSA. Talk to your benefits administrator about how use your HSA and track your qualified medical spending. Get the answers to more frequently asked questions here or learn more at mybenefitwallet.com.