What’s the Benefit Stack? How are Benefit Stack updates applied? We’ll answer those questions and more in this article.
How to set the default Benefit Stack settings
Select Settings from the navigation menu.
Select the Benefits tab.
Under Benefit Stacking, drag and drop the benefits in the desired order.
Partner Administrator Feature
This feature is only available for partner administrators. It is not available for employer administrators. If you're an employer who wants to adjust your organization’s Benefit Stack settings, please contact your administrator.
Wait. What’s a “benefit stack”?
Depletion order of funds
The sequence in which different health spending benefits (like a FSA, HRA, or HSA) are used to cover expenses, withdrawals, or distributions.
The Benefit Stack is our platform feature that allows you to set the payment order for when a member's expense is eligible for multiple benefits. The eligible benefit template located highest on the stack is debited first. When applicable, the Benefit Stack order impacts both claims adjudication and card swipes.
Wait. What’s a benefit template?
Benefit Template
A benefit template is a pre-set framework that serves as a starting point for partner administrators to launch benefit plans. Benefit templates contain the core rules, parameters, and configurations of a benefit plan that can be easily customized and then issued (assigned) to all employer clients simultaneously.
The benefit stack under platform settings shows all benefit templates available in the Benefit Builder.
What’s a benefit plan?
Benefit Plan
A benefit plan is a fully configured offering issued (assigned) to specific organizations from a benefit template. It contains all the finalized rules, parameters, and configurations that determine how the benefit functions for the organization's employees (members).
The benefit stack under Organization Settings shows all benefit plans issued to that organization.
Can you give me an example?
Sure! Let's say the table below showcases the platform settings.
Benefit Stack Order |
FSA LP-FSA HSA |
Jane used her Health Wallet card to pay for a year's supply of contact lenses, an eligible expense for her HSA and LP-FSA. Jane's LP-FSA funds will first be used to pay for the contact lenses. If her LP-FSA funds are insufficient for the expense, her HSA funds will be prioritized next.
How are updates applied?
Benefit Stack updates are applied to:
New organizations: Newly issued benefit plans reflect the default platform settings. For this reason, benefit plans issued to organizations created in the future will reflect confirmed updates.
New benefit plans issued to existing organizations. Updates will not immediately apply to existing organizations. However, newly issued benefit plans will reflect the updated Benefit Stack order when they are issued to existing organizations.
Another way of saying this
Benefit plans reflect the platform’s default benefit-stack settings when issued to an organization.
Example
Specific Motors offers its employees the opportunity to enroll in an FSA, LP-FSA, and HSA. Later in the year, Specific Motors issued a remote work LSA to their employees. Reflecting the platform’s default settings, the newly issued remote work LSA is ranked second above LP-FSA and HSA.
Specific Motors Benefit Stack | Platform Benefit Stack Default Settings | Updated Specific Motors Benefit Stack |
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If preferred, you can update an organization's benefits stack after issuing a new benefit plan. Learn more by reading "Customize an organization's Benefit Stack settings."
Note on Top-Ranked Templates
If the default top-ranked template is updated, newly issued benefit plans based on the updated top-ranked template will not supersede existing benefit plans based on the previously top-ranked template. For this scenario, customize an organization’s benefits stack after issuing the new benefit plan.
When do expired benefits “disappear” from the Benefit Stack?
When removed from the Benefit Builder, benefit templates will disappear from the Benefit Stack under platform settings. (This can only be done by contacting Support.)
Will platform setting updates impact custom organization settings?
Any custom organization settings will not be impacted immediately. However, in the future, any new benefit plans issued for that organization will follow the default stacking order. This follows the principle shared in the above answer to "New benefit plans issued to existing organizations."
How do I customize the Benefit Stack order for a specific organization?
To learn more about custom configurations, read " Customize an organization's Benefit Stack settings.”
What happens when a new benefit plan is issued?
When new benefit plans are issued, they will reflect the default Benefit Stack settings. If the default order is not preferred, update the organization's Benefit Stack settings after issuing new benefit plans to that organization.
How do I update the order of existing benefit plans?
If preferred, you can update the order of existing benefit plans by leveraging the Benefit Stack feature available for each organization.
What are some benefit stacking protocols?
Glad you asked. Here are some rules that you should follow.
Prioritize benefits with time-sensitive funds
Stack benefits with funds that will soon be inaccessible for members (e.g., plan year, run-out period, or grace period) at the top. This strategy helps ensure members can use time-sensitive funds and protects funds that can be used later.
Update plan documents
The IRS advises plan sponsors to amend HRA plan documents if General Health FSA or Dental & Vision LP-FSA funds are withdrawn before HRA funds. For this reason, plan sponsors should update plan documents for any benefit stacking changes. Refer to IRS Notice 2002-45, Part V, for more details.
Compliance Note
Communicate benefit-stacking order updates to impacted organizations. As the plan sponsors, they may need to review plan documents.
Preserve HSA funds
Members own their HSA funds -- they cannot be lost due to a plan year expiration or an employment change. For this reason, we consider it a member-first practice to debit HSA funds last.