What happens if there is insufficient funds in my HSA to pay for a medical expense?
Over drawing your HSA is prohibited by the Internal Revenue Code. This means if you create a negative balance for your HSA, it is no longer treated as an HSA. To prevent you from being disqualified; if, your HSA does not have sufficient funds available for a payment transaction, TRCB will deny payment and return the item to you. If your accounts balance falls below $0.00, for 30 days, your Health Savings Account ceases to be a Health Savings Account and will be closed by TRCB. Reference IRC Sec. 4975.
