The minimum HSA Select contribution of $3,000/year can be daunting to some folks. "What if I don't use it all?" they ask us. That's a big expense for my business each year.

The good news? You don't have to make that contribution each year. A Blendable HSA Select is a Health Spending Account (HSA) where the funds available for you as the Plan Member are reset each year and unused funds are credited to the Plan Sponsor Company. This credit is applied against future billing.

It means that you won't have to pay the full $3,000 each year, just the difference between $3,000 and what was remaining in your HSA, plus the Admin Fee and Excess Medical premiums.

Take a look at the table below to understand how we handle contributions, fees, claims, and credits for an HSA Select.

HSA Contribution $ 3,000 $ 3,000 $ 3,000
10% Admin Fee $ 300 $ 300 $ 300
Excess Medical Premium $ 240 $ 240 $ 240
Total Cost $ 3,540 $ 3,540 $ 3,540
Less: Credit from unused funds $ - $ (1,500) $ (1,250)
Total Payable $ 3,540 $ 2,040 $ 2,290
Claims Reimbursed $ 1,500 $ 1,750 $ 3,000
HSA Balance Remaining $ 1,500 $ 1,250 $ -

Work through this chart with your own predicted medical expenses and you'll see how an HSA Select will impact your cash flow.

While many clients are initially concerned about making contributions each year, the biggest complaint we ever get is from clients who don't fund enough and want to make extra contributions mid-year!

Talk to our Growth Team to learn more and set up your HSA Select.

How should you pay for medical expenses?

What is the right amount to contribute?