Full-coverage coverage benefits for employees typically refer to plans that cover a variety of healthcare services such as doctor visits, hospital visits and emergency room visits. However, certain plans cover more than just basic medical expenses. Not fully understanding what’s covered in your healthcare plan can be stressful and even frustrating when it comes time to decide on medical procedures or pay for medical expenses. Below, we discuss the true meaning of “Full” coverage benefits for employees and what expenses qualify for coverage through a health savings account (HSA).
What are qualified expenses vs unqualified expenses?
Fully understanding what’s covered by a healthcare plan can help participants get the most out of their employee benefits. With an HSA specifically, plan participants can use funds to cover costs for eligible or qualified services. An eligible expense is a health care service, treatment or item that HSA participants can purchase without taxes according to the Internal Revenue Service (IRS). Below is a list of some typical eligible expenses that are reimbursable through an HSA:
- Copays, deductible payments and coinsurance
- Hospital charges
- Prescription drugs
- Dental exams, x-rays, fillings, crowns and orthodontia
- Vision exams, frames, contact lenses, contact lens solution and laser vision correction
- Physical therapy
- Chiropractic care
- Medical supplies and first aid kits
- Prescribed over-the-counter medications
- COBRA premiums
While it may seem like a majority of health services and items can be purchased with funds from an HSA, there are some expenses that do not qualify for coverage under an HSA. These typically include:
- Cosmetic procedures or surgery
- Dental products for general health
- Personal hygiene products
If you are ever confused about what is HSA-eligible vs. what isn’t, you can review your Explanation of Benefits (EOB), which is a statement from your health insurance plan describing what costs your employee benefits will cover for medical care you have received or health products you have purchased. You can also visit the online HSA Store for a complete list of HSA eligible items and services
Lastly, it’s also important to keep a record of the expenses you purchase with funds from your HSA. Sometimes insurance companies or the IRS will ask you to prove that an expense was eligible for reimbursement from your account. Some general examples of records to keep include:
- Receipts
- Explanation of Benefits (EOB)
- Medical diagnosis letters
- Physician diagnosis letters
- Prescriptions
Exceed Employee Expectations with a Simply Smarter HSA
A Clarity HSA gives your employees the tax savings they would expect -- plus a simple, stress-free experience
The Clarity HSA offers on-demand, interest-free payroll advances to cover unexpected healthcare costs. This ensures your employees are covered and confident that they can keep healthcare expenses under control.
We make it easy for your employees to use their HSA and get the best value from each dollar spent. Items purchased through the HSA Store are auto-substantiated and comply with even the most recent healthcare reform provisions. Our health savings account store makes it fun and easy for your employees to use their HSA and save even more money!
Additionally, our HSA takes savings a step further with a new approach to HSA investing personalized to fit your employee’s needs and experience level. With our investment solution, employees can choose from three different investment models (Managed, Self-Directed and a first-of-its-kind Brokerage option) all of which are designed to help them work toward their long-term investing goals. Best of all, it’s fully integrated with the Clarity Benefit Solutions HSA solution which means employees can manage everything from a single portal.
Contact us today to start discovering the secrets to saving with a Clarity HSA.
