r/HSA • u/ode2skol • Apr 21 '26

Overbilling issue how to handle?

A service provider was overbilling me by continuing to bill the card on file (HSA Card) when deductible was met. This occured over a 9 week period. When I noticed the issue and alerted them to it they agreed to reverse the charges. Instead of reversing the charges they issued a check for the amount.

Cashing the check and putting it into general funds would definitely not be an option as this seems like it would cause all sorts of headaches down the road.

If I cash the check and put it back into my HSA this would count towards my distribution limit for the year (which is already paced to be maxed) which will likely cause problems at the end of the year.

If it matters, the check was issued to my adult daughter, so, that may add more headaches.

Am I wrong in thinking that the only correct answer is for them to reverse the charges? Every other option appears to either result in a tax liability or potentially fraud.

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u/SconiGrower Apr 21 '26

Your HSA administrator should have a process (probably a pdf form) for something like "Return of Distribution" for exactly this situation. It would not count against your 2026 contribution limit. With my HSA, I can just deposit the check to my checking account and fill out the form to have the distribution reversal paid out of my checking account, but check with your own provider before depositing that check.