Wellness Spending Accounts are a variation on the Rollback benefit feature. The funds must be used within 24 months or be reset to the plan sponsor.
Unlike the other spending accounts, members can use wellness funds to claim lifestyle expenses such as gym memberships, smoking cessation programs, fitness equipment etc. Those purchases are not eligible medical expenses so cannot be reimbursed on a tax-free basis. Any amounts used for lifestyle expenses are reported back to the plan sponsor to be accounted for on a taxable benefit basis.
The Wellness Rollback only reimburses lifestyle expenses as taxable benefits. It's generally used in combination with another feature to proactively demonstrate the organization's investment in member wellbeing.
Some plans restrict the expenses that can be reimbursed. Check the plan-specific design to be certain.
Benefits
- Flexibility for plan members
- Ability to use funds for a wider variety of health and wellness expenses
- Complete cost control for plan sponsors
- Plan sponsors keep ownership of funds
How it fits in today's market
- If you want to go the extra mile and provide braggable benefits - this is for you. It also provides:
- Extended coverage
- Flexibility
The selling opportunities:
- Companies looking to stand out in the job market
- Businesses looking to provide an extra incentive for their teams. No more, no less.
- Clients you already manage financially
Details
Minimum Group Size
5
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
Wellness expenses as defined by the plan sponsor only.
Unused funds at end of Benefit Period
Returned to plan sponsor
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