10. Your employer contributions are prorated or you have not yet received the full year’s funds.
Some employer offer to fund part or all of their employee’s HSA accounts each year. Based on this funding, employees sometimes expect that so long as they contribute enough at the beginning of the year to make up the difference between their employer contribution to their HSA and their deductible, they will have met their deductible as soon as their HSA funds have been depleted. However, some employers prorate their HSA contributions or contribute it in equal installments throughout the year creating discrepancies.
For instance, let’s say that an employee is hired July 1st and their benefits go into effect on their date of hire. They have an HDHP with a calendar year deductible of $3000. Their employer contributes $3000 per year to each employee’s HSA account, but this amount is prorated based on the date of hire. This employee would then receive $1500 to their HSA, but they would still be responsible for an additional $1500 out-of pocket in order to meet their deductible. That member would then receive the full $3000 the next year.
Should the employer make their contributions in equal installments throughout the year, employees might also find discrepancies in their HSA. For instance, let’s say that an employee has a HDHP with a calendar year deductible of $3000 and their employer contributes $1200 in equal monthly installments throughout the year. At the beginning of the year, that employee contributes $1800 to their HSA so that they will have $3000 in their HSA by the end of the year. However, should the employer meet their deductible by June, they will be short $600 from their HSA to pay their bills since their employer has only contributed $600 year to date. Although their employer will contribute the additional $600 to their account by the end of the year, they will not have the remaining $600 in their account until December.
Want to know to rest of the top 10 reasons your HSA does not match your deductible? Check out the McGohan Brabender checklist and look for upcoming and previous articles explaining the other reasons!
