Crediting HSA deductibles from a prior carrier
Many health plans run their HDHP deductible on a calendar year, even if the employer's plan renews mid-year. When you choose PriorityHSA at your mid-year renewal, we will credit an employee's deductible back to Jan. 1 if you agree to re-renew PriorityHSA on Jan. 1 of the following year.
Note: This applies only to groups who make a mid-year switch from another carrier's HSA-qualified HDHP to PriorityHSA.
Example: If you start PriorityHSA on Mar. 1, 2020, switching from a HDHP plan with a deductible that started Jan. 1, 2020 and you're willing to change your plan year to Jan. 1, 2021, then we can allow deductible credit back to Jan. 1, 2020.
The full plan year deductible will look like this:
- Jan. 1, 2020 - Feb. 29, 2020 = HSA plan deductible with prior carrier
- March 1, 2020 - Dec. 31, 2020 = HSA plan deductible with Priority Health
- Group re-renews on PriorityHSA effective Jan. 1, 2021
The IRS mandates that the minimum HDHP deductible can't last longer than 12 months. In this scenario, the sum of the plan year is 12 months, which means that we can take the deductible credit from the prior carrier without disqualifying the HDHP.
If you want to renew early and offer the credit:
You must indicate your decision at the time of enrollment on the New Group Application. Retroactive requests aren't honored.
To receive the credit, members must submit the most recent explanation of benefits (EOB) from the prior carrier showing how much of the deductible they met for each family member.
The request for deductible credit can be submitted directly to customer service:
ATTN: Claims Dept.
PO Box 232
Grand Rapids, MI 49501-0232