Common Terms

We know the world of Health Spending Accounts can be daunting so here is a list of common terms that you will see around:

Amount Claimed

The claimed amount is the total of all eligible expenses you are claiming.

Amount Paid

The amount paid is the amount you paid for a particular transaction that may or may not have eligible claims.

Benefit Coordinator

This is the person from your business that has administrator permissions for the benefit plan. We only provide plan information to the Benefit Coordinator.

Benefit Limit

The fixed dollar amount an employee receives each plan year.

Claim Deadline

The fixed dollar amount an employee receives each plan year.

Classifications

These are the categories that each of your employees are placed in which designate what their benefit limit will be.

Dependents

Dependents are defined as your legal spouse and unmarried, unemployed dependent children including natural, adopted or step-children. Children of a common-law spouse may be covered if they are living with the employee.

A spouse of an eligible Employee who is either:

legally married to the Employee; or

a person who is living with the Employee and who is publicly represented as the Employee’s spouse or partner; and

Any financially dependent member of the Employee’s household with whom the Employee is connected by blood relationship, marriage or adoption

Dependent children are eligible for benefits to a maximum of 25 years of age if the child is a full-time student or is mentally and/or physically disabled.

Effective Date

The effective date is when the Plan is to commence or when the employee is eligible for the Plan.

HSA

Health Spending Account

PAD

Pre-Authorized Debit. This is the fixed amount that will be pulled from your business account on the first business day of the month . The Benefit Coordinator can adjust this amount by contacting support@novahsa.com to meet the group’s claiming needs.

Plan Year

Your Plan either runs with the calendar year or on a unique 12-month period that was set up when your plan was created. As the Benefit Coordinator can view your plan year dates within your HSA account.

Approved

This status means that you claim has completed the processing stage and payment will be issued shortly.

Submitted

This status means the claim has been received and has now begun processing. Once all the items you are claiming have been entered into the system, the status of your claim will change again.

Reset (Benefits)

Under this option, the benefit limit must be used within a given plan year or the benefit is forfeited. HSA does not receive or keep the forfeited amount.

Rollover (Benefits)

This is the unused portion of the benefit limit that will be carried forward into the next plan year. The amount carried forward must be used within 12 months.

Service Date

This is the date when the procedure, service or prescription occurred.

Healthcare is stressful enough. Paying for it shouldn’t be.