Wondering what happens to a company's unused balance when leaving myHSA? Here's a breakdown of what to expect:
Understanding the myHSA Model
Pay-As-You-Go: Most companies using myHSA operate on a pay-as-you-go model. This means myHSA doesn't hold your company's funds. Instead, funds are only pulled from your company account when employee claims are approved and need to be reimbursed.
Withdrawal Process: When an employee's claim is approved, myHSA pulls the claim amount, along with any applicable administrative fees and taxes. This withdrawal typically happens the following Wednesday or Friday after the claim approval. This method ensures that funds are used directly to cover the specific claims of employees. We don't carry a float from your company, unless you are on a "Pre-funded Account".
Prefunded Accounts: While the majority of accounts are pay-as-you-go, there are instances where a company might have a pre-funded account. This is a special setup arranged through myHSA's accounting team. If your company has a pre-funded account, specific arrangements regarding the handling of these funds upon termination will apply, usually involving reconciliation. For more help with this, it's best to reach out to support@getmyhsa.com so that we can assist with your particular set-up.
The "balance" you see in your myHSA Plan Administrator account isn't a typical balance of funds. Instead, it serves as a tracking tool that shows your company's potential exposure if employees were to submit claims. It helps you understand the amount your employees have left to spend, but it doesn't represent actual held funds.
Withdrawal Statements: Every time a withdrawal is made due to an approved claim, the plan administrator for your company receives a detailed withdrawal statement. This transparency ensures you are always aware of how much is being withdrawn and for which claims.
If a company decides to leave myHSA, the transition is designed to be seamless. Since myHSA typically doesn't hold your funds, there's no complex retrieval process involved. Here’s what happens:
Final Withdrawals: Any outstanding claims approved before the termination will be processed as usual. myHSA will pull the necessary funds from your company account on the next scheduled withdrawal day (Wednesday or Friday).
Prefunded Accounts: If you have a pre-funded account, myHSA's accounting team will work with you to reconcile the account.
Termination of Services: Once all claims are settled, and you are ready for the account access to be closed, the myHSA services for your company will be terminated. You will no longer see any withdrawals related to myHSA, and the account tracking tools will be deactivated.
We never want to see our clients leave myHSA, but it is important to us to provide transparency using regular withdrawal statements and the tracking balance tool ensures that you are always in control and aware of your company's financial commitments.
For specific details about your company's plan or if you have any additional questions, always refer to your plan administrator or contact myHSA support at support@getmyhsa.com.