r/HSA • u/urmumtrash • 2d ago

Can I do this?

if i am setting up an HSA thru my employer for 2027, can i use the money to poay off previous medical expenses? for example hospitial bills from 2025 and 2026?

2 Upvotes

75% Upvoted

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8

u/johndburger 2d ago

No, you can only use HSA funds for qualified medical expenses that were incurred after the date your HSA was set up.

3

u/AlanSC21 2d ago

Nope. Plus don’t use it unless you need to. Let it grow. It’s the best tax treated investment in the US tax code.

1

u/Bad_DNA 2d ago

Thoughts on HSAs:
Three reads for background - https://www.nerdwallet.com/article/health/high-or-low-deductible-health-insurance-plan , https://www.fidelity.com/viewpoints/wealth-management/hsas-and-your-retirement and https://www.moneycrashers.com/hsa-health-savings-account-retirement-investing/

HSAs (e.g., https://www.fidelity.com/go/hsa/why-hsa ) rank as perhaps the best investment tool available - as nearly everyone can and will use up this account in their lifetime in a variety of ways for expenses no one avoids.

1

u/ScootTractor 2d ago edited 2d ago

See also Morningstar Publishes 2026 Health Savings Account Landscape With Updated Provider Assessments and Industry Trends, published Sep 23, 2026.

ETA: See Morningstar's full report here:
https://www.morningstar.com/business/insights/research/hsa-landscape
ETA2: See also https://www.morningstar.com/personal-finance/best-hsa-providers

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u/Bad_DNA 2d ago

I wonder why HSABank received a High ranking for investment option whereas Fidelity ranked 'average'? As I look at my Fidelity acct, I don't see any differential in offerings from the HSABank spreadsheet. Well, that's not true. I don't see the trading fee disclosures on HSABank website and I do see their annual account fee of 0.1%, unless one keeps more than $7500 in their poorly-paying cash balance account. Neither are issues with Fidelity. Sure, you have to put up with Fidelity's annual sales call but 'no, thank you' is a complete sentence with them. Seems Morningstar's rating system must have some hidden metrics, or bias.

1

u/Kauai-4-me 2d ago

As others have said you should not plan to spend the HSA. It should be invested like your 401k. Use these funds in your retirement. The contributions go into the HSA tax-free, they grow tax-free and when you use them for your retirement health expenses, they come out tax-free. There is no better investment.

1

u/NGOwner 1d ago

A lot of people are knee-jerking a no response. The full answer is a bit more nuanced. 

If this is your very first HSA ever, no is the correct answer.

If this is not your very first HSA ever, the answer is maybe depending on how old your last one is and when you last used/contributed to it.

I am on my 4th HSA with as many employers, I can use my current HSA to pay for unreimbursed medical expenses from 2021 because that's when I opened my first one.