A benefit period is a length of time that a Member has to submit claims for reimbursement. For an HSA, this is typically a one-year time period.
Understanding how date parameters affect the eligibility of claims can be tricky, so let’s break that down.
The basic rules
According to CRA guidelines, Benefit Period funds can only be used for the period in which the receipts are dated. In other words, you can’t carry forward claimable expenses from this Benefit Period for reimbursement from the next period’s funds.
Health care expenses with service dates on or after the Benefit Period Start Date (or the Member Start Date, if different) and on or before the Benefit Period End Date are eligible for reimbursement from funds contributed in the current Benefit Period.
Here’s an example
Let's explain with an example, based on a Benefit Period start of 2024-09-01, with a Benefit Period end of 2025-08-31.
Any receipts dated in the Benefit Period can only be reimbursed from funds contributed within the Benefit Period. You can't use funds contributed in the next Benefit Period (2025-09-01 to 2026-08-31) to reimburse receipts dated from 2024-09-01 to 2025-08-31.
So, let's say you receive $500.00 in contributions in your 2024-09-01 to 2025-8-31 Benefit Period, and have $600.00 worth of receipts dated within that time.
Since you only have $500.00 available, you'll be reimbursed $500.00 and will exhaust your funds.
If you receive a contribution as of 2025-09, you can't use that contribution towards the $100 not reimbursed in the previous Benefit Period.
Contributions in the new Benefit Period can only be used for receipts dated 2025-09-01 and onward.
If you've exhausted your Benefit Period funds on an expense, you'll see a message that you've exhausted funds for the Benefit Period.
Unused Contributions
Since you have an HSA classic any unused contributions from previous Benefit Periods may carry forward and be used for future claims.
Keep your claims up to date - remember, for our HSA Classic feature, claims in any Benefit Period must be submitted no later than 90 days after the Benefit Period End!
Check out these helpful articles for more information: