Some of the several advantages of an HSA over extended health insurance are the flexibility and control it offers you, the business owner. You may be wondering, though, how exactly does it all work from your end?
What you need to set up the HSA
The first thing you need to set up an HSA is a registered business number. You can then apply quickly for an HSA through Bounc3 here. The entire process, from application to set up, is entirely paperless. After your application has been processed, you’ll get access to an online dashboard that will act as your one-stop benefits control center.
Adding or removing employees
To get started, head to the ‘Employees’ tab where you can add your employees. First, you’ll need to complete the employee profile and ensure their banking information is inputted correctly. Then, you can attach the plan by hitting ‘Add Plan’. This will allow you to select a plan type, which you can pre-determine yourself for different types of employees; full-time and part-time, for example. Then select the eligibility date for each employee, which determines the date from which your employees can file claims. You can also choose whether to apply a wait period for new employees, or to waive it.
If you need to remove an employee, hit the ‘Employees’ tab and click ‘edit’ for the employee. Once on their profile, scroll down to the ‘Other Actions’ tab and click ‘Terminate Employee’. You will be asked to set the termination date and grace period during which the employee can submit any outstanding claims.
Setting up the balance
While adding employees, you can set up the balance amount of how much your employees will be able to claim over the year. You can decide to allocate the full amount of your HSA yearly, or more frequently. Some business owners choose to allocate more frequently, such as quarterly, to avoid large health expenses being withdrawn from their account.
Monitor employee claims
Once set up, your employees will be able to make claims online or through the myHSA app. Your employees will pay out-of-pocket initially, and then submit the claim for reimbursement. To see all of the claims processed, head to the ‘Claims’ tab on the dashboard. All claims will be listed by their status – pending, approved, paid, denied or reversed.
When your employee makes a claim, the amount claimed will be withdrawn from your corporate bank account. Bank files will run on Wednesday and Friday mornings. You’ll receive an e-mail notification about any withdrawals being made that week to ensure that you have the adequate balance for that claim to be processed. Your employees will get their deposit shortly after the claim is made.
That’s all there is to it! HSAs provide flexible health benefits for your employees that you, as a business owner, control through a personal dashboard.