This article only applies if you have a Blendable HSA Select. Consult your Advisor if you have questions about what type of Blendable HSA you have, or the other features on your Blendable benefits plan.
The Blendable HSA Select is a unique feature to provide amazing HSA cost control and flexibility for incorporated individuals. This article describes what sets it apart, including:
- The business owner's role as Plan Sponsor vs Plan Member;
- What it means for you as the Plan Sponsor and you as the Plan Member; and
- How the HSA Select works.
Plan Member vs Plan Sponsor
As an incorporated business owner, who is also the only person receiving contributions to their Health Spending Account you have two roles that you need to differentiate between:
Plan Member
This is you as the employee. You are actively at work in your business and the company is providing a benefits plan for you. You receive contributions to your HSA and make claims.
The benefits you receive are tax-free.
Your Member Centre (use your custom URL, or head to https://login.blendable.ca if you can't remember it), is where you manage your personal information and make claims.
Plan Sponsor
This is you the business owner. You're making decisions on behalf of the company and are providing a benefits plan.
The cost of the benefits is a tax-deductible expense for your business.
Your Plan Centre (use your custom URL, or head to https://login.blendable.ca if you can't remember it), is where you manage your business information and review how your plan is set up.
How the HSA Select works for you as a Plan Member
Contributions
The HSA Select provides tax-free funds to you as the Plan Member to use for your eligible medical expenses. There are no copays or limits on service types and providers.
Contributions are made either annually or monthly. They accumulate in your HSA over the Benefit Period and can be used to reimburse your eligible expenses.
At the end of the Benefit Period, any funds remaining in the HSA will be reset and credited to the Plan Sponsor Company. The HSA balance will be $0.
Claims Carry Forward
We always recommend funding your HSA close to your expected needs — but life happens, and that’s exactly where your HSA Select plan really shines. This plan includes a claims carry-forward feature, meaning that if you run out of funds in a given plan year, you can simply hold onto those receipts and submit them the following year once new funds are added.
It’s a uniquely helpful option within HSA Select and one that can make a real difference when unexpected expenses pop up.
Learn more about how HSA dates affect claim reimbursements.
Just in case - Excess Medical Coverage
Included with your HSA Select is Excess Medical coverage for you and your family. Excess Medical is designed to provide support for unanticipated expenses. It goes above and beyond what your HSA would be expected to cover for things such as a catastrophic accident, a chronic medical condition, or a critical illness.
How the HSA works for you as the Plan Sponsor
Contributions
When you set up your HSA Select you chose either annual contributions or monthly contributions. We'll take payment based on that selection through direct deposit and deposit funds in the HSA.
At the end of the Benefit Period, any funds remaining in the HSA will be reset. The HSA balance will be $0 and the unused funds will be used as a credit on future bills. Learn more about how funds are handled at renewal.
We always recommend funding your HSA close to your expected needs, but with the claims carry-forward feature you can be conservative in your contributions. Any expenses that don't get reimbursed in the current Benefit Period can be carried forward and reimbursed when new contributions are made.
If you need to make changes to your contributions, like going from annual to monthly or increasing your contributions, you can do that at renewal. Our Growth team will be happy to review with you.
Excess Medical
One of the unique features of the HSA Select is that it includes an insurance component - Excess Medical. The Excess Medical coverage ensures the HSA Select operates "in the nature of insurance" as the the CRA would say, so that it's a tax deductible business expense to you as the Plan Sponsor and tax-free benefit to you as the Plan Member.
Excess Medical premiums are billed monthly, whether you're making monthly or annual contributions to the HSA Select.
Still have questions?
If you've got questions, we've got answers! Say hello@blendable.ca and we'll help you out.