April Advisor Newsletter
Inflation and Health Spending Accounts
The insurer doesn’t forget to apply inflation to traditional benefits, are you forgetting to apply it to spending accounts?
In a nutshell, spending accounts are a fixed allowance of dollars set aside for employees to use on eligible expenses; if said expenses are suddenly more expensive, the allowance won’t go as far.
Important Notices for April
If your client has a 120 day grace period, and their plan renewed on January 1, the grace period will be over at the end of April. The grace period is the time after renewal for employees to submit any outstanding claims from the previous benefit year. myHSA allows for a grace period of either 0, 30, 60, 90 or 120 days and is customizable in the plan design.
In case you missed it:
Clearing up the 10% rule
We want to talk about the 10% rule and why it is confusing and made things worse - not better.
A few years ago, CRA made an update to HSAs and what can be claimed. The update said:
A self-insured plan meets the “all or substantially all” (generally 90% or more) requirement for a calendar year if all or substantially all of the benefits paid to all employees that year are for medical expenses that are eligible for the METC.
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To share with your clients
Exclusively for our valued Advisor network. Look here in each newsletter for featured content from myHSA and our other trusted sources that you can send to your clients who may not quite "get" HSA's, WSA's or flex plans just yet.
We even have a new "Employer Resources" section where we will be publishing new content to help educate businesses on the benefits of different plans.