myFlexplan is taking the spotlight as our fastest-growing plan type (because it's amazing), but with the myFlexplan comes a term that might be new to employees: "Allocation."
myFlexplan provides employees with the power to choose where they want their funds to be made available for the year, and the word "Allocation" refers to the process of employees exercising that power. In most cases, the options are HSA and WSA, but in many cases, there are other allocation options too, like RRSP, TFSA, or other initiatives that the company provides.
The "Allocation Window" refers to the timeframe in which the employee has to execute this decision. The default allocation window is 30 days, which gives the employees time to plan their year and forecast their expenses. Now, the question pops up: "Why decide now? How can I predict my year ahead?"
Well, it's not us being tough – it's a CRA rule (check paragraphs 5-6 of this CRA bulletin)
Think of it like this: just like you can't buy insurance after an event, allocating your benefits has to be done before expenses are incurred.
Having 30 days to make this decision for the year might feel like a lot of pressure, so here are some tips I have put together to ease the stress. Feel free to pass this along to any users of myFlexplan that are in your network!
Understand Your Needs and Priorities: Consider your current health status, medical needs, and wellness goals. Are you generally healthy? Do you have chronic conditions that require regular medical attention? Do you want access to preventative care and wellness activities? Understanding your needs will help you determine how much coverage you require for both HSA and WSA.
Carefully Review All Options: Familiarize yourself with the details of the allocation options available to you. Understand what services and treatments are covered by each plan, their respective costs, and any limitations or restrictions. Have questions about your options? Reach out to myHSA's support team. They are the best.
Factor in the full scope of your coverage: Do you have any other health insurance or spousal insurance available to you? Remember that Insurance is always used prior to your HSA, so if you have insurance, find out what limits exist on that plan so that you can plan out your allocation to stretch out all of your coverage!
Project Potential Expenses: Estimate your potential healthcare expenses for the year based on your family unit, their medical history, and any planned services. Once you have your forecasted expenses worked out, decide where you think the funds would go the furthest.
Make Your Decision: After considering all the relevant factors, allocate your funds between HSA and WSA (and others if applicable) based on what aligns best with your needs, priorities, and budget.
Download our complete myFlexplan Allocation Guide below