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New HSA Feature: Introducing HSA Advance

HSA Advance is a new feature Surency Flex is offering its HSA clients. An employer can choose whether or not to offer HSA Advance to its employees. Switching to an HSA-eligible high deductible health plan (HDHP) can be an intimidating decision for some employees. HDHPs typically come with higher out-of-pocket health care expenses than other plans, but can be very valuable for saving long term. Employers can help boost enrollment in HSA-eligible plans and provide a worry-free transition for their employees with HSA Advance.

What is HSA Advance?

Normally with an HSA, employees can only use their HSA funds as they are contributed. HSA Advance is a special feature of Health Savings Accounts (HSA) that allows employees access to a certain amount of their elected HSA funds before they have contributed them to their HSA. This allows employees to pay for eligible expenses that are greater than the balance of their HSA Account (including investment account funds). The amount available for HSA Advance is determined based on their annual contribution amount and the employer’s policy. HSA Advance funds are then automatically repaid through payroll deduction and/or employer contributions.

How does HSA Advance work?

If an employee has recently opened an HSA and/or has a low account balance, this is what happens when they request reimbursement, either using their Surency Flex Benefits Card, Mobile App, or Member Account:

  1. Money from the HSA that has already been contributed will be used first to pay for the expense.
  2. If there is any money in the HSA investment account, that money will automatically be used next.
  3. Then, money from HSA Advance will be used to pay for the remainder of the expense - as long as the employee has elected to contribute that much or more for that Plan Year, and the employer’s policy allows HSA Advance to cover that much.
  4. The employee will then have an HSA Advance balance, which will automatically be repaid through payroll deductions and employer contributions (if applicable) until the HSA Advance balance is paid in full.

Here is an example of when an employee might need to take advantage of the HSA Advance feature:

 

Employees can view their total available balance, including their available HSA Advance funds, within their Member Account. Their Member Account will also show how much is left to repay once HSA Advance funds have been used.

Want to offer HSA Advance to your employees? No problem! HSA Advance can be set up at any time during your Plan Year. Contact us to get this feature set up for your employees at 800-264-9462.

Have more questions about HSA Advance? Check out our Frequently Asked Questions by clicking here for more details.

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