Health Spending Account Funding

Companies pay for only the actual Health Spending Account (HSA) claims that are approved, plus a 12% administration fee (+ GST). If there are no expenses submitted for a particular month (or year), then there are no administration fees charged to the company. All of the claims paid plus the administration fee are itemized in monthly statements that are available on line and qualify as tax receipts.

The Western Life - Health Spending Account offers two options for providing funding or payments of the claims submitted.

1. Claim-by-claim funding where funding requests are generated by the HSA administration system whenever an employee claim is submitted (the Plan Administrator will receive a “Funding Needed” email). The company then mails in a cheque to cover the claim plus an administration fee.

2. Pre-funding where a block of money (any amount) can be mailed in to create a funding pool that is automatically drawn against once a claim has been deemed to be proper. If the funding pool balance reaches zero, an email is automatically sent to the company Plan Administrator requesting another pre-fund cheque.

In both modes of operation, the money submitted by the company is held in an account and can be viewed through the web site under “Financials”. In the case where a claim-by-claim cheque is received, and has an “overpayment” amount from a claim submission error (or other things), the money is held in an account and will be applied automatically to any further claim submissions. There is no interest paid on a positive account balance. Both modes of operation are subject to the same claim adjudication and processing fee.