I've been using Quicken for a double entry record of my finances since forever. I've figured out ways to amortize my insurance so it charges it monthly, and track everything real well.

Well, today I'm stumped.

When I see a medical provider, I write a check and split it: my copayment goes into medical expenses, the amount the insurance reimburses goes into a liability account. When I get reimbursed from the insurance company, it goes from liability to my checking account.

But this year I have a health care savings account. So part of my paycheck goes into that account. When I see a provider, I had that transaction go from checking to liability. But now is where I don't know what to do. How do I make it go from my health savings account, to relinquish the liability, to end up in my checking account? I've been banging my head over this for about 1.5 hours and it's time to ask someone.

I don't use quicken but will try to answer your question.

Before the health savings account, you split the check into expense and liability account. I don't understand why you put it into liability instead of a receivable while waiting for the reimbursement? Is this something that quicken required this to be processed?

Now you are using the health savings account, when part of your paycheck goes into the saving account, it still belongs to you, just for a restricted usage. So you should make another asset account, separate from your checking. When you deposit the money into the account, they should go into expense, since you are not able to get the cash back. When you see the doctor, pay the co-pay, charge the money you paid to a receivable, waiting to be reimbursed. When you get the check from the savings account, take the amount out from the receivable.

It sounds confusing trying to use descriptions instead of journals. I can write you the debits and credits if you need them.

I think I understand what you are saying but I would appreciate if you could write it as credit and debits. Here's what I think it is:

When I get paid:
Credit to Salary Income
Debit to Checking Account
Debit to Health Care Savings Account

When I pay provider
Credit Checking Account
Debit Co-Pay to Health Care Expenses
Debit to Health Care Receivable

When I get reimbursed
Debit Checking Account
Credit Health Care EXpenses
Credit Health Care Receivable
Debit Health Care Savings

Did I get that right?

Now you have the health saving account, say you go see the doctor, your co-pay is $20, and the cost at the doctor is $300. Do you need to pay $320 upfront? If you do, do you pay cash for $320, or you have a debit card for your health saving and you use that card for $20 and pay cash for $300?

I need to know the exact transaction in order to give you the entry.

Quote:

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Originally Posted by MaggieMouse

Now you have the health saving account, say you go see the doctor, your co-pay is $20, and the cost at the doctor is $300. Do you need to pay $320 upfront? If you do, do you pay cash for $320, or you have a debit card for your health saving and you use that card for $20 and pay cash for $300?

I need to know the exact transaction in order to give you the entry.

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Say it is $300. My copay is $60. I write a check for $300 to the provider. I then file with the insurance and they send me a check for $240 later, which came out of the health savings account.

1. Dr. checking Cr. Income
2. Dr. Receivable 240 Dr. expense 60 Cr. Checking 300
3. Dr. checking 240 Cr. Receivable 240

This is the entries for your health saving account
1. Dr. saving Cr. Income
2. Dr. expense Cr. Payable
3. Dr. Payable Cr. Saving