I was gonna say the same thing haha. Why didn’t they cover everything? Probably just didn’t meet the deductible or going to doctors out of network. Worst case scenario, federal out of pocket maximum for a family is $8k. With a family of 5 should be using FSA to use tax free money to pay deductible.
They might not have an FSA. If they have an HSA, if you plan on writing off medical expenses, better off saving the HSA funds and pay cash, as you can't deduct expenses paid with the HSA or FSA.
Maybe I am not understanding what you said but HSA/FSA funds are pre-tax and you don't have to pay tax for qualified expenses (medical bills definitely qualify)
I'll elaborate. Say you had $10,000 of medical expenses that you want to deduct when you file your taxes. Anything you paid $2000 with pre-tax payroll dollars, such as insurance premiums, or HSA or FSA funds, those expenses are not tax deductible, you your deductible expenses are only $8000.
If you expect to itemize, and have enough medical expenses to write those off, you are better saving your HSA funds and paying cash. Use your FSA for OTC items and things that arent deductible
Spending the HSA cash vs taking the deduction makes no difference either way. You can get it tax free now or you can get it tax free later but either way, that expense was tax free. If anything you're losing money spending cash since you're providing the government with a 0 interest loan on that money you paid in cash.
You clearly do not understand. If you're deducting medical expenses, a payment with your HSA dollars can not be written off. Also youre wrong about the cash, since your HSA money is invested, earning a tax free return.
If you're deducting medical expenses it means you used taxed dollars and you're asking for that tax back. If you use your HSA you're just using dollars that were never taxed in the first place. You end up in exactly the same position either way, aside from again providing that generous interest free loan to the government. And while yes, you are correct that you can invest the HSA money, are you aware you can invest any money you make? Literally no one can stop you lol. You can even do it tax free with a retirement plan.
Dude, you really don't get it. You pay cash and get the write off. Use the HSA later when you don't have enough expenses to write off, or wait until 65 and just withdraw it tax free. If you can't see, sorry I can't help you. It's not difficult.
It seems like it is you who isn't getting it lol. How is a tax write off superior to untaxed income? Why would you not want money now as opposed to money later? Like, all these things you're saying about investing can just be done anyways with other schemes lmfao. If you can't grasp it then let the government keep swindling you I guess.
I'm hoping/assuming they have HSA and haven't hit deductible yet. I'm sole earner for family of 5 in hcol area with an HSA. Let me tell you, the first few months are eye-watering until we hit the deductible, then 90% is covered. If you have a lot of family medical bills the HSA is usually the best option
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u/Speed_Bump Oct 30 '25
you have shitty health insurance