My partner just changed jobs to an employer that only offers a high deductible health plan. This is not an ideal situation for our finances as we both have chronic health conditions, his being high risk, and we expect to hit our out of pocket max ($6000). We also recently discovered that even though coverage began on March 1, because of his pay schedule, there are no funds in the HSA yet because funds won't be taken out until his next paycheck mid-month. (not sure how we have coverage since they also haven't taken out any premiums).
These factors have resulted in a situation where, even though we maximized our HSA contribution, the funds available in our HSA are going to be lagging behind the amount we owe on medical expenses for at least the next several months.
Which strategy will minimize our losses the most? Should we: 1. Charge every expense and reimburse ourselves as the money becomes available in the HSA so we can at least be making 2% on a cash back credit card? (We would not be taking on debt as we have enough in savings to cover the credit card payments.) 2. Make all the payments we can using the HSA primarily, charge the rest, and reimburse ourselves as funds become available later?
Are there any potential risks to either of these plans? And am I losing the tax benefit of the HSA when I reimburse myself?