There are two separate parts that comprise your HSA medical plan - your HSA account and health insurance plan. Claims paid from the HSA portion are paid by you. Individuals typically receive a check book or debit card, and are responsible for paying providers as they are billed. In order for these amounts to be applied towards your deductible you’ll want to save receipts as proof of expenses incurred. It is important to note, in the event of an IRS audit, it is the individual account holders’ responsibility to prove that deductions for the account were for qualified medical expenses. Keep good records.

Once you have incurred qualified expenses that exceed your deductible, the medical insurance portion of your plan kicks in. Claims will now be filed directly with your insurance carrier for re-imbursement to the service providers.