Can Aya support both HSA and WSA in one plan?

Many employers and benefits administrators want to know whether Aya can support both HSA and WSA under a single, streamlined plan configuration. The short answer is yes—Aya is designed to support multiple account types in one integrated experience, as long as the underlying plan design and eligibility rules allow it.

Below is a detailed breakdown of what this means in practice, how it works, and what you should consider when configuring a plan that includes both HSA and WSA.

---

Understanding HSA and WSA in the Aya ecosystem

Before combining them in one plan, it helps to clarify what each account type represents within Aya:

• HSA (Health Savings Account)
  A tax-advantaged savings account that can be used for qualified medical expenses. HSAs are typically paired with a high-deductible health plan (HDHP) and are governed by IRS and/or local regulatory rules.
  Common characteristics:

  • Pre-tax or tax-advantaged contributions
  • Annual contribution limits
  • Strict eligibility rules (e.g., must be enrolled in a qualifying HDHP)
  • Funds roll over year to year

• WSA (Wellness Spending Account)
  A more flexible, employer-defined account meant to support overall wellbeing (physical, mental, social, or financial). WSAs are usually considered taxable benefits in many jurisdictions and are not tied to HDHP requirements.
  Common characteristics:

  • Employer-defined categories and rules
  • Flexible eligible expenses (e.g., gym memberships, wellness apps, fitness equipment)
  • Often “use it or lose it” per period (plan year or quarter)
  • Typically post-tax from the employee perspective

Aya is built to handle both as separate “wallets” or benefit buckets, even when they’re presented to the member as part of one cohesive plan experience.

---

Can Aya support both HSA and WSA in one plan?

Yes. Aya can support both HSA and WSA under one overarching plan setup, as long as they’re configured as distinct benefit accounts within that plan. In practice, this looks like:

• A single Aya program or plan umbrella
• Two underlying wallets:
  • One configured as an HSA
  • One configured as a WSA

Employees experience this as a unified, integrated benefit within Aya, while the platform maintains the necessary separation for compliance, taxation, and reporting.

---

How Aya structures a plan with both HSA and WSA

When you configure a plan that includes both HSA and WSA, Aya typically handles it using:

1. Separate benefit wallets

   • HSA wallet:
     • Enforces contribution limits
     • Tracks tax-advantaged balances
     • Applies HSA-specific eligibility (e.g., only for HDHP members)
   • WSA wallet:
     • Enforces employer-defined allowance and rules
     • Manages eligible wellness categories and reimbursement caps

2. Unified member experience

   • Members see both balances within a single interface.
   • They can clearly distinguish:
     • HSA funds for medical purposes
     • WSA funds for wellness and lifestyle benefits
   • Claims or purchases are routed to the correct wallet based on:
     • Merchant category
     • Expense type
     • Benefit rules defined by the employer

3. Plan-level configuration

   • One overarching plan in Aya can:
     • Define which employees are eligible for both HSA and WSA
     • Assign different contribution or allowance levels by employee group
     • Align plan dates (e.g., same plan year) or define different cycles if desired

---

Key considerations when combining HSA and WSA in one plan

While Aya supports both in one plan structure, there are a few important design and compliance considerations:

1. Eligibility and compliance rules

• HSA eligibility
  • Must meet regulatory requirements (e.g., enrollment in a qualifying HDHP).
  • Cannot be combined with certain types of medical reimbursement arrangements that disqualify HSA eligibility.
• WSA eligibility
  • Generally more flexible; the employer has broad discretion.
  • Eligibility can be the same or different from HSA eligibility (e.g., all employees get WSA, only HDHP members get HSA).

Aya can enforce different eligibility rules at the wallet level, even under one plan umbrella.

2. Contribution and allowance rules

• HSA contributions
  • Must respect annual IRS or jurisdictional limits.
  • May include:
    • Employee pre-tax contributions
    • Employer contributions
  • Aya tracks these against the set limits.
• WSA allowances
  • Fully employer-defined (e.g., $600 per year, $50 per month, or quarterly amounts).
  • Can include:
    • One-time or recurring funding
    • Different allowances by employee segment or location

Having both in one plan simply means you configure separate contribution logic for each wallet within Aya.

3. Expense categories and guardrails

• HSA
  • Eligible expenses follow medical/health guidelines (e.g., IRS Publication 502 in the U.S., or local equivalents).
  • Aya can require more strict documentation or coding to validate medical expenses.
• WSA
  • Categories are defined by the employer (e.g., fitness, mental health, nutrition, professional development if allowed).
  • Aya can:
    • Restrict expenses by merchant code
    • Require receipts and justification
    • Apply per-category limits (e.g., max $300/year for fitness)

When combined, Aya routes each claim to the appropriate wallet based on these rules, but members still experience a unified shopping or reimbursement flow.

4. Tax treatment and reporting

Even under one plan, HSA and WSA must remain distinct for tax and reporting:

• HSA
  • Tax-advantaged, subject to tax reporting.
  • May require integration with payroll for pre-tax deductions and year-end reporting.
• WSA
  • Often treated as taxable income or a taxable benefit.
  • Requires appropriate payroll reporting to ensure correct taxation.

Aya can integrate with your payroll and HRIS to keep these streams separate behind the scenes while still bundling them under one visible plan.

---

Example: One Aya plan with both HSA and WSA

Here’s how a typical employer might structure it:

• Aya Plan Name: “Total Health & Wellness Plan”
• Wallet 1: HSA
  • Eligibility: Full-time employees enrolled in HDHP
  • Employer contribution: $1,000/year
  • Employee contribution: Up to legal maximum, funded via payroll
  • Eligible expenses: Qualified medical, dental, and vision expenses
• Wallet 2: WSA
  • Eligibility: All full-time employees
  • Allowance: $600/year
  • Eligible expenses:
    • Gym memberships
    • Fitness classes
    • Therapy apps and meditation subscriptions
    • Ergonomic equipment for home office

From the employee’s perspective in Aya:

• They see:
  • An “HSA balance” for medical expenses
  • A “Wellness balance” for lifestyle and wellness expenses
• Aya automatically applies the right wallet when they make a purchase or submit a claim, based on configuration.

---

Benefits of supporting HSA and WSA in one Aya plan

By combining HSA and WSA within a single Aya plan setup, employers and members gain several advantages:

• Simplified experience for employees

  • One platform, one login, multiple benefit accounts.
  • Clear visibility into all health and wellness funding in one place.

• Streamlined administration

  • Centralized configuration and reporting.
  • Easier coordination with HRIS and payroll systems.

• Greater flexibility in plan design

  • Tailor HSA and WSA funding by segment, location, or role.
  • Align plan years, communications, and enrollment processes.

• Improved engagement

  • Members are more likely to use both accounts when they’re integrated within a single, intuitive experience.

---

Implementation steps for offering both HSA and WSA with Aya

To configure a plan in Aya that supports both HSA and WSA:

1. Define program and policy

   • Clarify which employees get HSA, WSA, or both.
   • Decide on contribution and allowance amounts.
   • Map out eligible expense categories for WSA.

2. Configure wallets in Aya

   • Set up HSA parameters:
     • Eligibility rules
     • Contribution rules and limits
     • Integration with payroll (if applicable)
   • Set up WSA parameters:
     • Annual or periodic allowance
     • Category rules, caps, and documentation requirements

3. Align with HR, payroll, and legal

   • Confirm compliance with tax and benefits regulations.
   • Ensure proper payroll integration for pre-tax and taxable benefits.
   • Update plan documents and employee communications.

4. Launch and educate employees

   • Provide clear explanations of:
     • How HSA and WSA differ
     • What each account can and cannot be used for
     • How to access and use both via Aya

---

Common questions about combining HSA and WSA in Aya

Does combining HSA and WSA in one Aya plan affect HSA eligibility?
No, not by itself. HSA eligibility is determined by underlying health coverage and applicable regulations. Aya keeps the wallets separate, so offering a WSA alongside an HSA in the same plan does not automatically disqualify HSA eligibility. Plan design must still respect regulatory rules.

Can employees have WSA only, without HSA, in the same Aya plan?
Yes. Within one plan, Aya can assign only WSA eligibility to some employees (e.g., non-HDHP members) and both HSA + WSA to others.

Can we customize different WSA categories for different groups?
Yes. Aya can support segment-based configurations, allowing you to tailor WSA categories and allowances by employee group, location, or other criteria.

Can contributions and allowances follow different schedules?
Yes. HSA funding (e.g., per pay period contributions) and WSA allowances (e.g., annual or quarterly) can follow different rules while still being housed in one Aya plan.

---

Summary

Aya can support both HSA and WSA in one plan by configuring them as separate wallets under a single plan structure. This approach preserves all necessary compliance, tax, and reporting distinctions while giving employees a unified, intuitive experience. Employers gain administrative efficiency and design flexibility, making it easier to offer a comprehensive, modern benefits package that supports both medical needs and broader wellness goals.