Overview
An over-reimbursement happens when a Member is reimbursed more than they should’ve been from their Plan.
This can happen for a variety of reasons, like an administrative error or an error during claim submission.
When an over-reimbursement happens, the extra funds must be paid back to keep things tidy and in line with those pesky CRA rules and regulations.
The details
How over-reimbursements can happen
Over-reimbursements are rare, but they can occur when:
- A claim is submitted twice for the same expense, either to Blendable or to Blendable and another provider
- The receipt amount was entered incorrectly ($800 instead of $80)
- A plan change (like a Member being farewelled) takes effect after a reimbursement was issued
- A reversal or adjustment is missed after a correction
- An error during adjudication of a claim
- An eligible device is purchased, reimbursed and then returned
What happens next
If we discover an over-reimbursement, our Customer Experience team will reach out to explain what happened and confirm the amount that needs to be returned.
Alternatively, if you notice an over-reimbursement to your account, or find that you’ve been reimbursed from another provider, please reach out to our team so we can get a repayment organized.
That extra amount of money needs to be paid back so the Plan and balances stay accurate.
Once the repayment lands back on our side, we’ll do a clean up on our side so everything’s right where it should be.
Why the amount must be paid back
Health Spending Accounts (HSA) are regulated by the CRA. Reimbursements stay tax-free only when they’re for eligible medical expenses.
With Enhanced Health Blend plans, the funds belong to the Plan Sponsor. If an over-reimbursement happens, we’ll need to collect the extra amount to keep the Plan’s records tidy and everything in balance.
If a Member gets more than they should have, that overpayment is considered a personal benefit rather than a legitimate medical reimbursement.
This means that the extra amount could be viewed as taxable income if not repaid.
Paying the amount back makes sure:
- The Plan remains in line with CRA requirements
- The Member’s reimbursement record stays accurate and tax-exempt
- Contributions and balances are correctly reflected for future claims
How repayment works
We make repayment easy with the following options:
- Etransfer: Send payment to admin@blendable.ca (we’ll provide instructions).
- Pre-authorized payment: We can process repayment directly from a bank account once an agreement is provided by the Member.
While both options are available, etransfer is quicker and easier!
Anything else?
Over-reimbursements are uncommon, and we’ll always make sure Members understand what happened and what’s needed next.
Spot a potential overpayment on your account or have questions about a repayment request? Reach out to our Customer Experience Team for help.