Managing your myHSA account effectively involves understanding the different types of balances and how they can be applied. One area that can be particularly confusing is the Reserve Balance. Let’s break down what each balance means and how you can use your Reserve Balance specifically.
Understanding Your Balances
Current Balance:
Definition: The Current Balance represents the primary funds you receive during your most recent myHSA renewal. These funds are designated for the current benefit year and are meant to cover your immediate expenses.
Usage: These funds should be used for any eligible expenses you incur during the current year.
Carryover Balance:
Definition: If your plan includes a "Carryover" option, any unused credits from your account can be carried forward to the next benefit year, creating a Carryover Balance.
Usage: The Carryover Balance can be used to settle outstanding claims from the previous year during the grace period or for new expenses in the current benefit year. When you make new claims, these funds are utilized first, followed by the Current Balance.
Reserve Balance:
Definition: The Reserve Balance is specifically reserved for submitting claims from the previous benefit year during the grace period.
Usage: These funds are intended to address any outstanding claims from the prior benefit year. However, once the grace period ends, these funds expire and cannot be used for new claims in the following benefit year.
How to Use Your Reserve Balance
Identify Outstanding Claims: Review any outstanding claims from the previous benefit year that need to be addressed.
Submit Claims During the Grace Period: Ensure that all outstanding claims are submitted during the grace period, which typically follows the end of the benefit year. The Reserve Balance can be used to cover these claims.
Monitor Expiry: Be aware of the expiration date for your Reserve Balance. Once the grace period ends, any remaining Reserve funds will expire and cannot be used for new claims.
Example Scenario
End of Benefit Year: Your benefit year ends on December 31st, and you have some outstanding medical bills from December.
Grace Period: You have a grace period to submit these claims.
Using Reserve Balance: Submit your outstanding claims in January using the Reserve Balance. Any prior year claims submitted after the grace period ends will not be eligible.
Maximize Your myHSA Balances
Understanding how to use your myHSA balances, including the Reserve Balance, ensures you maximize your health spending and avoid losing funds. Here’s a quick recap:
Current Balance: Use for current year expenses.
Carryover Balance: Use for previous year's claims during the grace period or new year expenses.
Reserve Balance: Use exclusively for previous year's claims during the grace period.
Need Help?
If you have any questions or need assistance navigating your balances, our team is here to help. Start a chat in the bottom right-hand corner, or email us at support@getmyhsa.com.
Ensuring you understand and effectively use your myHSA balances will help you get the most out of your health spending account.