Customization is an important part of building the perfect HSA for your client. With myHSA, advisors have the power to fine-tune HSA plans to meet their clients needs.
One of the customizations that can be made is to allow "Carryover" on the plan - but what exactly does that mean? In this article, we will explain the default setting on the plan design, and explore other options for carryover customization that might not be so obvious from the user perspective.
Balance Carryover: Within myHSA's plan settings, the "Carryover" setting allows advisors to turn on the ability for employees of their client to carryover unused funds. Opting for Carryover means that unused funds from the previous benefit year are not lost. This feature enables the user to combine leftover funds from last year with new funds and apply them towards new year claims. However, it's essential to note that funds carryover is limited to a one-year span; unused funds cannot carry over for more than one year.
Expense (Claims) Carryover: Unlike Balance Carryover, Expense Carryover is not a default system option but becomes relevant when a company opts to turn off Balance Carryover in their plan design. This back end customization allows employees to apply new funds from the renewal to settle unpaid claims from the previous year. Implementing Expense Carryover involves coordination with myHSA's support team to record and facilitate the process for adjudicators and support staff. Special instructions are provided by myHSA to clients who choose claims carryover to explain how to submit claims in this scenario, since it's not recognized by the system yet.
An important caveat to consider is that both Expense Carryover and Balance Carryover cannot be simultaneously applied in a plan. This exclusivity is intentional, as the CRA does not allow both to apply. The strategic choice between these options lies with the client, who must weigh the advantages and implications of each to align with the specific needs of their employees. It cannot be switched back and forth year after year to suit the needs of that year either, as that would eliminate the "Element of Risk' which must exist in all HSA plans.
Whether it's extending the life of unused funds or allowing for claims settlement across benefit years, myHSA's customization options empower advisors to create tailored plans that meet the client where they are at. If you have questions about the above options, please reach out to support@getmyhsa.com for guidance.
*Please note that our live chat agents are not typically trained on exceptional customizations such as expense carryforward, so it's best to reach out to the support email for assistance*