I paid for orthodontia (2nd round for son) using HSA funds. Later found out that the insurance will cover 50% of the cost up to a maximum. I haven't put any claim through the insurance as yet. Because anything that is reimbursed to me by the insurance is technically no longer a valid medical/dental expense, if I never make a claim to the insurance and never receive reimbursement for the cost, then it is technically a valid dental expense and there will be no tax implications? Please advise. Originally thought because we reached the lifetime max for him it was not covered, but it was explained by the same insurance company that my employer was bought out and the same insurance under my new employer starts back at zero.
I understood that it was better than trying to put all insurance reimbursements received back into the HSA to resolve the distribution - is that correct?
