When an employee passes away, providing their survivors with continued access to Health Spending Accounts (HSAs) can offer significant financial relief during a challenging time. This article outlines how companies can extend myHSA as survivor benefits.
Extending HSA Benefits: A Company Decision
The duration for which HSA benefits can be extended to survivors is determined by the company. This period can be customized based on the company’s policies and the needs of the survivors. Here are some common considerations for determining this period:
Standard Duration: Many companies choose a standard period, such as 12 months, for extending benefits.
Customized Duration: Depending on individual circumstances, some companies may opt for a longer or shorter period.
Policy Documentation: Clearly document the chosen policy between your Plan Administrator and your Employee so that if questions arise, it can be referred to.
To streamline the process, the administration of the HSA benefits is easy to access by the Plan Administrator. This approach minimizes the need for extensive documentation or having to reach out to us (unless you would like to). Key points include:
No Documentation Required from Survivors: Survivors are not required to provide any additional documentation to myHSA in order to access the HSA funds.
System Administration: The Plan Administrator will handle all necessary adjustments within the system to ensure the continuation of benefits.
Clear Communication: Ensure that the Plan Administrator communicates the process and any timelines clearly to the survivors to avoid confusion. If questions arise, myHSA Support will direct the Survivors to reach out to the company Plan Administrator.
Extending HSAs as survivor benefits is a compassionate and flexible way to support the families of deceased employees. By allowing the Plan Administrator to manage the process and setting clear policies and procedures, companies can provide meaningful assistance without the administrative complexity. This approach not only helps survivors during a difficult time but also reflects positively on the company’s commitment to employee welfare.
If you have questions or require support, please reach out to support@getmyhsa.com or start a live chat with us, we are here to help.