If you administer an ICHRA or QSEHRA on Salusion you may notice:
a) reimbursements exceed the employee’s monthly amount;
b) an expense reimbursed in pieces instead of all at once.
Here is why
- When you create the HRA, you set a monthly amount for each employee.
- That monthly amount accrues throughout the plan year.
- The available allowance is the total of all monthly amounts that have accrued minus any reimbursements already paid.
- Salusion processes approved expenses on a first-in, first-out basis.
- Each night Salusion compares unpaid approved expenses against the available allowance and reimburses the expense up to the available allowance or remaining unpaid expense amount — whichever is less.
Example
