Generally, the recommended approach is to implement plan limit changes during the renewal period. However, there are scenarios that might allow mid-year adjustments. Understanding the guidelines can help advisors facilitate these changes effectively and fairly.
Considerations for Mid-Year Plan Limit Adjustments:
1. Is it fair?
It's important to note that any increase in plan limits must be uniform across all employees in a particular class. Individual adjustments for a single employee are not permissible within an HSA - it has to be fair to all employees of the class.
2. Is it Onside?
Increasing plan limits mid-year due to an employee incurring expenses exceeding the preset limit could raise concerns with the CRA, because the plan has to work like insurance. Just like you can't buy insurance after an unexpected event, you can't increase the plan amount just to cover unexpected expenses.
Once you know it's a-ok given the above implications, here is how to implement the increase:
Access Client InformationNavigate to the "clients" tab in your advisor portal and click "Edit" next to the client.
Modify the PlanSelect the "plans" tab and click "edit" next to the specific plan requiring changes.
Adjusting Plan AmountModify the plan amount, check twice to make sure it looks correct!
Setting EffectivenessWhen you submit, the system will ask you when the change will take effect: Immediately, Next Renewal, or at a different Future Date?
Changing BalancesIf the current balances that employees have should be affected by the increase, enable "affect employee balances" for the new plan amount to reflect in employee accounts.
Full, or Prorated?Decide whether employees will receive the full increase or a prorated amount based on the effective date of the plan change. (Changes can be made after the selection is submitted, so don't stress)
Remember, if you are unsure about making any plan changes, we are here to help! Just reach out to support@getmyhsa.com or start a live chat with us and we'll walk you through the process.