Can I prepay my 2009 delivery expenses with my HSA now?

Question

I have an Health Savings account and will be using that to pay the deductible on my health insurance with our child being born. I am due in January and the OBGYN office would like us to start paying towards it now. They can't tell me for sure and I haven't been able to figure out so far if that is going to cause me any problems tax-wise paying expenses that have not been billed yet using my HSA. Can anyone help?

Answer 1

You can use the HSA for any medical expenses you pay this year regardless of when the services are provided unless the services were provided prior to setting up the HSA account. You can visit the IRS website and publications 969 and 502 for more information.

Answer 2

Nope, you can only use 2008 money for services rendered in 2008.

Answer 3

You can not pay for future medical expenses from your HSA. It is not an allowable expediture. You can verify that with YOUR HSA.

IRS Publication #502-page 15

http://www.irs.gov/pub/irs-pdf/p502.pdf

Answer 4

To break the tie, the first responder points out page 15 of the publication and it states "substantially beyond the end of the year."  So, January would not be substantially beyond.

BUT, I would never pay them now ahead of time.  What would be the purpose?  Tell the office that you've been advised that you should not pay your bill until after the delivery and after the insurance company has been billed and the bill has been repriced.

Tell them 'no.'  I've often had a hospital call explaining that they needed payment prior to a surgery.  I've told them 'no' and that's the end of it.  That money is in that account earning you money and if you wrote them a check for $5000 now then that money isn't in your account earning YOU interest.

The other issue is if you overpay them then you have to call and bother them to write you a check back.  Then it becomes your hassle.  

Don't do it...but to answer your question yes you can, it's just not good business to do so.

Hope that helps,

jeff