What to do with Medical Refund Checks

Follow these steps to make sure your refunded medical bill ends up in the right place, back in your HSA Central account.

Success! You’ve paid your medical bills and you can cross that to-do item off your list. But wait, a few months later you receive a check in the mail saying you overpaid, or even better, your insurance company covered more than you originally thought. So what do you do now?

Your first instinct may be to deposit that check into your personal checking account. Doing that could result in unexpected tax penalties. The best place to deposit your medical refund check is right back where it came from, directly into your Health Savings Account. But how exactly do you do that?

Here are 3 ways that you can easily add your refunded medical funds back into your HSA Central account:

  1. Central Bank Locations – You can easily deposit your medical refund check back into your HSA Central account at any Central Bank location. Just tell the person helping you that the check is for a refund to your HSA. This is the quickest and easiest way to deposit your check because it’s just like you would deposit a normal check at your bank.
  2. HSA Contribution Form – Locate the Contribution Form when you log into HSA Central’s Consumer Portal. The form is found under the Tools & Support section, where you can print it and fill out the required details. An important box to check on the form is the one for Mistaken Distribution. Checking this box ensures your refund isn’t included in your annual contribution amount for the year. Once you have everything complete, just mail the form and your medical refund check to the address found on the form. Just keep in mind that it may take several days for your funds to reappear in your account due to the mail process.
  3. HSA Central Online Access – If you were able to deposit your medical refund check into your personal checking account then you can make a transaction directly into your HSA Central account. All you have to do is log into the HSA Consumer Portal and under the I Want To section, select Contribute to HSA. From there, if you’ve already added your bank account, you can select it to transfer your funds from. To connect your bank account with your HSA Central account just click Add Bank Account under the Create Transaction section and follow the prompted steps.

Refunds can be a little tricky. In order to have the refund excluded from counting toward the IRS contribution limits, the refund transaction may need to be adjusted to offset your original transaction. An HSA Central representative can help you with this. Call us at 833.232.4676 or email HSACentral@HealthAccountServices.com for assistance.

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.
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