HSAs, HRAs, FSAs in Vermont
Due to no regulation of massage therapy in VT and thus inability to bill insurance, we would like to remind that we can take Health savings account payments with a referral from your doctor stating that massage is beneficial to your treatment/wellness plan.
Health Savings Accounts (HSA), Health Reimbursement Accounts (HRA) and Flexible Spending Accounts (FSA) are accounts where you put aside money to use on health care expenses.
Some workplaces automatically offer these plans to their employees.
An HSA is tax-favored savings account that is used in conjunction with a high-deductible HSA-compatible health insurance plan to make healthcare more affordable and to save for retirement.
Vermont residents can pay for qualified medical expenses with pre-tax dollars and save for retirement on a tax-deferred basis.
Here is a link to an IRS publication on these accounts.
It’s important to know:
- HSAs only work with high-deductible health plans. Vermont Health Connect offers several of these plans and will be able to tell you which plans work with an HSA. You can also call your insurance carrier to find out which plans work with an HSA.
- The money you put into an HSA is tax-deductible.
- There is a limit to how much you can contribute to an HSA each year. For 2018, it is $3,450 for individuals and $6,850 for families.
- If you are on Medicare, you cannot contribute to an HSA. But, you can use your money in your HSA. This handout answers questions about HSAs and Medicare.
You can use your HSA money whenever you want for medical and dental expenses that the IRS lists in Publication 502. Talk to a tax preparer if you have questions about HSAs and your tax return.
What Expenses can be covered by Health Savings Account?
- You are eligible to receive tax-free reimbursement for qualified health expenses not covered by your insurance as defined by Section 213(d) of the Tax Code. A list of these expenses is available on the IRS website, www.irs.gov. HSA distributions used for any purpose other than the qualified medical expenses listed will be taxable, and the appropriate tax rules will apply.
- What Are Quantified Medical Expenses?
- A qualified medical expense is one for medical care as defined by Internal Revenue Code Section 213(d). The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including dental and vision. Most expenses for medical care will fall under IRC Section 213(d).
- However, some expenses do not qualify.
A few examples are:
- Surgery for purely cosmetic reasons
- Health club dues
- Illegal operations or treatment
- Maternity clothes
- Toothpaste, toiletries, and cosmetics
HSA money cannot generally be used to pay your insurance premiums. You can see exceptions above under “Can my HSA be used to pay premiums?”.
*See IRS Publications 502 (“Medical and Dental Expenses”) and 969 (“Health Savings Accounts and Other Tax-Favored Health Plans”) for more information.
Other health insurance does not include coverage for the following: accidents, dental care, disability, long-term care, and vision care. Workers’ compensation, specified disease, and fixed indemnity coverage is permitted.
More answers here: http://www.hsacenter.com/how-does-an-hsa-work/frequently-asked-questions/
We we also offer 10% discount for packages of 5 massages and more.
Brilliant Massage Therapy