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 two options for Carryover on the plan design, Balance Carryover and Expense Carryover.
Balance Carryover: Selecting Balance Carryover on the plan design means that at each renewal unused balances will roll over for use in the next benefit year. Employees can combine leftover funds from the previous year with their new funds and apply them to new claims. Balance Carryover is limited to a one-year span and unused funds cannot carry over for more than one year. Balance carryover is the default option on the plan design page.
Expense (Claims) Carryover: The Expense Carryover option allows employees to apply new funds from the renewal to settle unpaid claims from the previous year. For example, an employee can submit a 2024 dated claim at any time during the 2025 year and have it applied against their current balance.
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.