Balance Booster™ for health savings accounts (HSAs)

With HealthEquity’s Balance Booster program, employees gain early access to planned HSA payroll contributions. Balance Booster funds are made available to employees beginning on ‘Day One’, without having to fully fund the accounts. Mid-year enrollees also have access to the funds. As contributions are made, the available Balance Booster funds are reduced, keeping the available account balance the same until the contributed funds exceed the amount of balance booster.

How Balance Booster works

Beginning on the first day of the plan year (or the first day of eligibility), all HSA participants may access 100% of the predetermined Balance Booster amount for qualified medical expenses. Fortunately, you only need to provide a portion of these funds up-front to HealthEquity. An initial reserve of funds is established with HealthEquity to cover Balance Booster advances. As advances are accessed, this reserve is replenished when needed. Because it isn’t a loan or line of credit, all employees can have access to Balance Booster funds based on your program’s design. Periodic reporting is provided to you, outlining the employees with outstanding advances.

Advantages of using Balance Booster

For employers:

• Boosts employee participation in lower cost HDHPs
• Drives more FICA savings via higher average HSA contributions
• Increases benefit plan savings via greater participation and higher FICA savings
• Enables more cash-efficient just-in-time employer funding of HSAs
• Automates recovery of advanced funds through future employee contributions
• Limits your liability by giving you control over how much funding you advance to employees

For employees:

• Improves ability to cover medical expenses early in the plan year
• Makes employee and employer funds available from day one of the plan year
• Free; no additional cost or interest charges
• Convenient; pay back of advanced funds through future contributions
• Hassle-free; no credit checks required to access advanced HSA funds because the Balance Booster program is not a loan

Repayment of Balance Booster funds

Balance Booster is easy and convenient for employers, with little additional management or paperwork required. For employees who access Balance Booster funds, future contributions to their HSAs made through payroll deduction are used to offset the advance. If an employee terminates before the advance is repaid, your company’s policy dictates how the advance is recouped.

Balance Booster example

Meet Thomas:

• New to HSAs and high-deductible health plans
• Is concerned by his plan’s $2,000 deductible
• His employer contributes $1,500 to an HSA during the year
• Thomas elects to contribute $1,500 annually through payroll deductions

During his first month with an HSA-qualified plan:

• Thomas incurs $500 in out-of-pocket medical and pharmaceutical expenses
• His HSA contributions are only $250

Thomas thrives with Balance Booster:

• With Balance Booster, Thomas’ employer has made available a balance of $1,000 in his HSA, beginning ‘Day One’
• Out-of-pocket expenses are paid without hassle or concern
• Future contributions made by Thomas and/or his employer offset previously used Balance Booster funds