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 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.