Health Saving Account

I am using Quicken Deluxe Version 5.9.2 (Build 59.25153.100) on my MacBook Pro
This is more of a book keeping Question.
I have a health savings account which reimburses me for medical premiums and expenses and have set it up as a "Property" Account  named HSA in  Quicken.
I also have a Medical Insurance account.
I enter all premiums I pay into the Medical Insurance account.
When I get reimbursed i enter the payment in my checking account to category HSA so I can track my balance in the HSA account.  However I would also like to enter it into my Medical Insurance  category so I can see my actual out of pocket insurance expenses.  Same for the Medical Expense category.  Cant figure out how to do this.  Wondering if someone can give me some help.  
thank you so much,  jac

Comments

  • John_in_NCJohn_in_NC SuperUser ✭✭✭✭
    edited January 22
    I sense you are confusing categories with accounts. They are not the same.

    Moreover, I believe you will need to start splitting out your paycheck for the various items (gross income less taxes, insurance, transfer of $ to retirement, HSA accounts, etc.) You can advise if you are not familiar with splitting a paycheck.

    How you classify your HSA account (cash, asset, or investment) depends on both your personal choice and whether or not it will allow investing activities. If the latter, then it must be setup as an investment account assuming you are going to track your holdings. The only reason I keep my HSA setup as an Asset is so that I don't see the money commingled in my Cash & Credit accounts.

    In any case, you will want to show your/employer contributions transfers to this HSA. (Your transfers will likely be from the split paycheck above.)

    All transactions related to it (copays, medicine, etc.) are recorded in that account and not in your checking account. You can categorize them appropriately (Copays, Medicine, etc.) there. (The financial institution handling your HSA might not allow you to download transaction activity. If you have to manually enter things, that isn't hard at all.)

    If you have your paycheck split, then it shouldn't be hard at all to see how much you are paying out for your Medical Insurance. Various reports or even the Category Explorer will allow you to see this.
  • jaccjacc Member
    edited January 24
    OK.  I don't think I explained this too well.  
    I do understand the difference between Categories and accounts.
    The problem is recording the same transaction as a deposit to my checking account and catorigizing  it as an expense.  Let me try to explain it better.
    I get a lump sum from former employer into my HSA Jan 1 every year for the entire year.
    I pay my copay, insurance, etc from my checking account and use the proper category.
    The HSA automatically deposits that same amount into my checking account.
    I would like to categorize that deposit into my checking account as an expense so I can see how much out of pocket I am paying for healthcare.
    The problem is that when entering the deposit from HSA account to my Checking account I cant figure out how to categorize that as an expense  to off set the actual expense.
    In other words.  I pay the Dr a $50 copay from checking account.  
    Now I show a $50 out of pocket cost for healthcare.
    Next I File a claim.  HSA Deposits $50 into my checking account.  
    In quicken, I enter that $50 from HSA to Checking.  
    So my HSA balance decreases, reflecting how much I have spent. 
    But I still show a $50 out of pocket healthcare expense.

    So I cant figure out how to make the $50 deposit offset the $50 medical copay charge because I have to apply it to my checking account.
    Sorry if this is not explained well.  Maybe it just cant be done the way I want to do it.
    Thank you again for trying.
    Jac

  • John_in_NCJohn_in_NC SuperUser ✭✭✭✭
    edited January 23
    jacc said:

    OK.  I don't think I explained this too well.  
    I do understand the difference between Categories and accounts.
    The problem is recording the same transaction as a deposit to my checking account and catorigizing  it as an expense.  Let me try to explain it better.
    I get a lump sum from former employer into my HSA Jan 1 every year for the entire year.
    I pay my copay, insurance, etc from my checking account and use the proper category.
    The HSA automatically deposits that same amount into my checking account.
    I would like to categorize that deposit into my checking account as an expense so I can see how much out of pocket I am paying for healthcare.
    The problem is that when entering the deposit from HSA account to my Checking account I cant figure out how to categorize that as an expense  to off set the actual expense.
    In other words.  I pay the Dr a $50 copay from checking account.  
    Now I show a $50 out of pocket cost for healthcare.
    Next I File a claim.  HSA Deposits $50 into my checking account.  
    In quicken, I enter that $50 from HSA to Checking.  
    So my HSA balance decreases, reflecting how much I have spent. 
    But I still show a $50 out of pocket healthcare expense.

    So I cant figure out how to make the $50 deposit offset the $50 medical copay charge because I have to apply it to my checking account.
    Sorry if this is not explained well.  Maybe it just cant be done the way I want to do it.
    Thank you again for trying.
    Jac

    Thanks for clarifying things, Jac.

    If I do follow you correctly, then I don't think you have to do anything special other than make sure that the reimbursement you get from you claim is represented as a Transfer from your HSA in Quicken over to checking. (If you download transactions, then you will "match" the downloaded checking account reimbursement to the checking side of the transfer.)

    Because it is a transfer, both sides are equal and opposite and will cancel each other out for reporting purposes. Thus, it doesn't really matter what category you use for the transfer-you are simply moving $ from one pocket to the other. 

    It sounds like you are correctly categorizing your transactions for when service is rendered. (In your example, it would be the hospital copay.) Those transactions themselves would capture your true healthcare costs, and not the reimbursement from your HSA provider. 

    Does this answer your question?
This discussion has been closed.