OptumHealthBank.com - Josh's Story

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If you want to use funds from your investment account to pay for qualified medical expenses, you'll have to transfer them to your HSA deposit account first.

Josh's Story

Meet Josh to find out how you can use your HSA investments to pay for an unplanned medical expense.

Josh's Story*
Josh is a divorced man in his early 40s. Active in sports, he plays softball every week from April to November, and he's quite competitive. Last summer, Josh slid into second to avoid a double play and hurt his knee, requiring a trip to the emergency room.

X-rays revealed that Josh tore his ACL and required surgery. The ER visit and the surgery would cost approximately $10,000 combined.

Josh's Health Plan and HSA
When Josh got divorced five years ago and had the opportunity to change his health care benefits, he decided to go with a high-deductible health plan and an HSA. With his high-deductible plan, he has a deductible of $1,150 and an out-of-pocket maximum of $5,800 per year.

Josh doesn't typically spend much on health care each year, but he thought it wise to put the maximum amount into his HSA each year to help pay for health care costs when he got older. He also decided to set up an automatic investment sweep to put funds that exceeded his investment threshold into an investment account, hoping that over the long term, these funds would grow substantially.

Paying for Surgery
When he hurt his knee, Josh had approximately $13,000 in his HSA investment account and $2,000 in his HSA deposit account. Josh's portion of emergency room and surgery costs was $5,800, which is the amount of his annual out-of-pocket maximum.

Because he didn't have enough in his HSA deposit account to pay for his portion, Josh transferred $5,000 from his investment account. After paying for the surgery, he still had approximately $1,200 in his HSA deposit account and $8,000 in his investment account.

*Hypothetical example is for illustrative purposes only. All events, persons and results described herein are entirely fictitious and amounts will vary depending on your unique circumstances. Any resemblance to real events or persons, living or dead, is purely coincidental. Current rates are variable and may change at any time.
Consult a qualified legal, tax or financial advisor for your specific situation.

Investments are not FDIC-insured, are not guaranteed by OptumHealth Bank, and may lose value.

OptumHealth Bank is not a broker-dealer or registered investment advisor, and does not provide investment advice or research concerning securities, make recommendations concerning securities or otherwise solicit securities transactions. Orders are accepted to effect transactions in securities only as an accommodation to HSA owner. All available mutual funds are offered by prospectus only, in accordance with the Custodial and Deposit Agreement. Prospectuses are available through the investment website, or by contacting the fund directly. Investments are self-directed and HSA owners should read the prospectus carefully and consider the fund’s investment objectives, risks, charges, expenses, and fees before investing.

All funds may be purchased at net asset value (NAV). While mutual funds may charge load fees pursuant to the prospectus, such fees may not be charged to HSA owners. Some mutual funds impose surrender or redemption fees for withdrawals made within a certain period of time following an investment. OptumHealth Bank and its affiliates receive compensation for providing various services to the funds, including distribution (12b-1) and sub-transfer agent fees but fees do not vary based on whether the bank accepted the order for the transaction or the quantity or price of the securities. See the Custodial and Deposit Agreement for more information.

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