A Wellness Enhanced is our version of a pay-as-you-go Wellness Spending Account. Instead of making regular contributions to the Spending Account, the Plan Sponsor starts by providing Blendable with a reserve (generally an estimate of two months’ worth of claims, or ¼ of the annual contribution). Each month, we then bill the Plan Sponsor based on the actual claims reimbursed.
The Wellness Enhanced reimburses lifestyle expenses such as gym memberships, smoking cessation programs, fitness equipment etc. as taxable benefits. It's generally used in combination with another feature to proactively demonstrate the organization's investment in Plan Member wellbeing.
Any amounts reimbursed are reported back to the Plan Sponsor to be accounted for on a taxable benefit basis.
The Plan Sponsor has complete control over what is eligible for reimbursement. Some choose to reimburse anything and everything, while some are more selective to align the Spending Account with their goals. Check out our sample designs for examples.
Benefits
- Flexibility for Plan Members
- Ability to use funds for a wider variety of health and wellness expenses
- Cost control for Plan Sponsors
- Plan Sponsors only pay for what gets used
- Highly braggable benefit
- Aligning the additional funds directly with something the Plan Member chooses highlights the value
How it fits in today's market
- Plan Sponsors who 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
- Be aware that monthly billing is variable, so the business needs to be prepared for higher costs some months (such as near renewal when Plan Members are keen to use up their balance)
Details
Minimum Group Size
5
Fees
12% on contributions
Blendable's fee is 8%. Advisor Compensation is typically 4% but can be adjusted.
Advisor Compensation
Recommended: 4% but variable as noted above.
Eligible Expenses
Wellness expenses as defined by the Plan Sponsor only.
Unused funds at end of Benefit Period
Spending Account balances are reset. Blendable continues to maintain a reserve to reimburse claims and bill the Plan Sponsor as claims are reimbursed.
When a Plan Member leaves
Plan Members have 30 days to submit eligible expenses.
Eligible Dependants
At the discretion of the Plan Sponsor. Typically matches the HSA definition - individuals related by blood, marriage, or law who are financially dependent on the Plan Member.