Why Did I Receive a Health Equity Visa Card?

Ever found a mysterious piece of plastic in your mailbox that isn’t a credit card? You’re looking at a HealthEquity Visa card, and while it might seem like just another piece of plastic, it could be your ticket to serious tax savings (or trouble with the IRS if you use it wrong).

If you’re reading this, you probably know it’s connected to some kind of health account. But between HSAs, FSAs, and all the other healthcare acronyms, it’s easy to get lost in the details.

Let’s talk about why this card showed up in your mail, what you can actually do with it, and most importantly, how to use it without getting sideways with the IRS.

What’s This Card?

A HealthEquity Visa card is basically your hall pass to your healthcare money.

But there’s a catch (there’s always a catch):

• Only works for medical expenses
• Can’t get cash from ATMs
• Won’t work at regular stores
• Might be linked to different types of accounts

Why You Got One

Most people get these cards for one of four reasons:

1. HSA Time: You signed up for a high-deductible health plan and got an HSA. This card lets you actually use that money.
2. FSA Fun: Your employer gave you a Flexible Spending Account. Unlike HSAs, these are use-it-or-lose-it accounts. (Yes, really – if you don’t spend it, it disappears)
3. Old Card, New Tricks: Your previous card expired or HealthEquity upgraded their tech.
4. Account Marriage: They consolidated multiple accounts onto one card.

Here’s what most people miss – which account type your card links to REALLY matters.

Using It Right

This is where things get interesting (and where people often mess up).

What Works:

• Doctors
• Hospitals
• Pharmacies
• Vision centers
• Dental offices
• Medical supplies
• Some Amazon purchases (if marked as HSA/FSA eligible)

What Doesn’t:

• Anything else. Seriously.

Even if something seems health-related, like gym memberships or vitamins, check first. The IRS has very specific ideas about what counts as a medical expense.

The Investment Angle

Here’s where it gets cool (if you’re into optimizing your money).

If your card is linked to an HSA, you’re sitting on a triple-tax-advantaged account:

1. Money goes in tax-free
2. Grows tax-free
3. Comes out tax-free (for medical expenses)

That’s better than your 401(k) or Roth IRA.

The Clever Hack:

• Pay medical expenses out of pocket now
• Keep your receipts
• Let your HSA money grow through investments
• Reimburse yourself years later

It’s totally legal, and it’s how some people are building serious retirement savings.

Common Mistakes

After researching this article, I’ve seen some painful (and expensive) mistakes:

The “I’ll Remember” Trap: People thinking they’ll remember what each purchase was for. Narrator: They didn’t.

The “It’s Kind of Medical” Rationalization: That massage might feel medicinal, but unless you have a prescription, the IRS disagrees.

The “I Don’t Need Records” Mistake: Until audit time comes, and you’re trying to explain three years of withdrawals.

What I’m Doing With Mine

After learning what I have while writing this article, I am:

• Keeping every receipt (digitally – it’s 2024, people)
• Investing most of my HSA money
• Only using the card for big medical expenses
• Paying small stuff out of pocket

In summary Your HealthEquity card isn’t just another piece of plastic – it’s a tool that can either save you thousands or cause major headaches with the IRS.

What We Know:

• It’s only for medical expenses
• Different rules apply for HSAs vs FSAs
• You need to keep receipts

What We Don’t Know:

• How the rules might change
• Whether Congress will expand what counts as “medical”
• If the investment strategy will always work

My advice? Learn the rules, save your receipts, and maybe consider the investment strategy if you can afford it.

Just don’t try to buy pizza with it. The IRS has no sense of humor about that stuff. 😉