With the HSA Classic, funds contributed to a member account become the asset of the individual and cannot revert to the plan sponsor or be withdrawn from the account for any purpose by the member. Funds are held in a legal trust and can only be used for the reimbursement of eligible medical expenses for the member and any qualifying dependents.
At the end of an annual benefit period, unused funds carry forward to the following year. If an employee is terminated, or the contributions cease for any other reason, the funds remain in trust for their use until exhausted.
Funds confer for use by dependents if a member passes away. If there are no dependents, they are donated to a charity of choice by the estate or the plan sponsor.
A simple admin fee is applied when funds are contributed to member accounts.
Benefits
- Flexibility for the plan members
- Plan members can save up in order to cover known future expenses
- Complete cost control for plan sponsors
- Simple administration
- 100% tax-deductible contributions
How it fits in today's market
- Attracting and retaining talent? Maximizing value? Controlling costs? An HSA Classic does it all. It also provides:
- True equity
- Flexibility
- Cost control
The selling opportunities:
We love to position it as being able to equitably cover your team while controlling costs
Businesses looking to compete in a tighter labour market
Clients you already manage financially
Clients fed up with the vicious cycle of premium-based benefits
Details
Minimum Group Size
5
Minimum Contributions
$75/member/month
Fees
- 10% on contributions
Advisor Compensation
Recommended: 4% but variable (fee will change accordingly based on our 6% fee)
Eligible Expenses
CRA defined health expenses
Unused funds at end of Benefit Period
Carried forward for future claims
Unused funds when member leaves
Can continue to use until exhausted
Eligible Dependants
Related by blood, marriage, or law who are financially dependent on member