HSA Real Life Stories

We have dedicated this page for those of you out in the HSA trenches.  We all have great stories that involve somebody benefiting from their HSA plan. There are lots of HSA owners who were correctly educated on how to use their Health Savings Account. Those that benefited have learned how flexible a Health Savings Account can be if leveraged the right way.

If you have a story that you would like to share, please contact us.


Family is on an HSA plan at work and Little Mary needs braces costing $4000: The family first checked to see if their employer dental plan offered a discount, and it did not. They then went out and purchased a dental discount plan online with the orthodontist in network and got 20%, bringing the cost down to $3200. They finally set up their HSA bank account online before starting braces. The ortho said an extra 5% discount if paid in full bringing the cost down to $3040. They funded the HSA account with the $3040 and will get the tax deduction at the end of the year. They were in a 20% tax bracket, so the real costs was reduced to $2432. They paid the orthodontist out of the HSA income tax free. They kept the receipts for the next 7 years. Congrats! that’s how you get a $4000 expense down to $2432. A different family instead worked out a $200/month payment plan with the orthodontist, and they were sure that they funded the Health Savings Account each month before paying the orthodontist to ensure the tax deduction. As long as the HSA is open, this family can post fund the HSA, and then reimburse themselves tax free for those out of pocket expenses. Keep good records!
Mom can only afford to have herself on the HSA plan at work. The company funds her HSA account with $100 every month. The spouse and kids have no health coverage and one of the kids got sick: Luckily Mom did some research and found out that even though the HSA bank account and money is in her name, she is able to spend those dollars tax free on any of her dependents including the spouse and kids. She took the child to the doctor and asked for the cash price, and then asked if there was a generic version of the medication being prescribed. She used her HSA debit card to gain access to tax free money and paid the $65 cash price for the doctor visit, and $6 at the pharmacy. She kept the receipts in case the IRS asks about the tax free withdrawal down the road.

John is a 56 yr old single male, and needs dental work done that will cost $8000 after discounts. He just started an HSA plan last month: John knew that he was going to keep his HDHP high deductible health insurance plan for the next 24 months, but also knew that he can only contribute $3000/year into an HSA + an extra $1000/year for being over age 55. So he opened up an HSA account before the dental visit. He then paid the $8000 in full on his Visa credit card that gets air miles. He then put $4000 into his HSA for the current tax year deduction. When the credit card bill came in, he used the $4000 from the HSA tax free, and used regular funds to pay off the other $4000 to avoid interest. But, John knew his HSA plan well. He knew that as long as the expense was after the HSA was opened at the bank, and he planned on owning the HSA for at least 24 months, and he was keeping the receipts in a safe place; that he could reimburse himself NEXT year tax free for the expense that occurred this year. 12 months later, John funds another $4000 into his HSA, and then reimburses himself tax free for prior year expenses. He eventually got to tax deduct the whole amount, but IRS maximum HSA limits caused him to do it over 2 years.

Steve and Joan are 60 yrs old retirees, and they are getting concerned about long term care coverage. They own an HSA plan now until Medicare: Just so happens Steve was playing golf with his agent who mentioned that long term care insurance premiums are an eligible HSA medical expense up to a certain age based amount each year. They have saved in their HSA for the past few years, and were planning on using the HSA funds to self-insure their long term care, but realized $10,000 would not go very far. So they purchased a long term care policy, and used their HSA money tax free to pay for it. They will plan on funding the HSA the maximum $8000 per year with catch up contributions each year for the next 5 years.