HSA Rollback

  • Updated

With our HSA Rollback feature, funds are contributed to member accounts for time- limited use on a cost-plus basis.

Unlike the HSA Classic, unused funds remain the asset of the plan sponsor and revert back to the organization after a pre-determined length of time, to a maximum of 2 years.

The plan sponsor can decide if unused funds should be reset each year or if the first year should be carried forward into the second and reset on a rolling annual basis going forward. This is a popular option because it allows families to accumulate funds and budget for expected costs, such as orthodontics, in the second year.

If employees are terminated, after a claim submission period of 30 days funds are returned to the plan sponsor.

The cost-plus nature of the benefit feature means that an admin fee is applied to pre- funded contributions and not returned on reset.

Benefits

  • Flexibility for plan members
  • Ability to reset funds on a rolling basis and allow plan members to budget for future expenses
  • Complete cost control for plan sponsors
  • Plan sponsors retain ownership of funds
  • Simple administration

How it fits in today's market

  • If your balance sheet isn't balancing, an HSA Rollback may be just what you need. It also provides:
  • Potential equity
  • Flexibility
  • Ultimate cost control

The selling opportunities:

  • We love to position it as being able to cover your team and provide flexibility 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

2

Minimum Contribution

$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

Resetting Benefit Period Funds Logistics

There are 3 options for resetting unused funds:

  1. After each Benefit Period;
  2. After two Benefit Periods; or
  3. On a rolling basis, so only funds from the previous Benefit Period are reset.
    • After year 1, no funds are reset.
    • After year 2, unused funds from year 1 are reset.
    • After year 3, unused funds from year 2 are reset, and so on.

Handling of Unused funds at end of Benefit Period

Returned to Plan Sponsor as a credit.

Unused funds when member leaves

Members have 30 days to submit claims, then funds are returned to Plan Sponsor.

Eligible Dependants

Related by blood, marriage, or law who are financially dependent on member.​