How auto-reimbursement timing works: a guide for agents
This article explains how auto-reimbursement (AR) timing works on StretchDollar, so you can set expectations with your clients and their employees and answer "when will I get paid?" questions.
The short version
- First month: paid when the employer's admin approves the employee's AR setup, as long as the admin approves before the plan start month ends. The employee doesn't wait for the monthly run.
- Every month after: paid by the run on the 25th, which collects next month's reimbursement from the employer. The September 25 run pays October.
- Approved after the 25th: next month is paid right away as a catch-up, so the employee doesn't miss a month.
- Timing: payments made at approval usually reach the employee 3–5 business days after processing. Monthly payments arrive around the 1st.
How the system works, step by step
- The employee sets up auto-reimbursement after buying their plan. They enter their premium, upload proof of coverage, and choose when coverage for the plan begins (the plan start month).
- The employer's admin approves it in the Company Portal. The approval window shows exactly what will be debited and when.
- At approval, StretchDollar can pay up to two months immediately from the employer's connected bank account:
- the first month of the plan, if the plan start month is the current month or later, and
- next month, if this month's 25th run has already happened.
- On the 25th of every month after that, the scheduled run collects next month's reimbursement, and it arrives around the 1st.
Timeline examples
| Scenario | Paid at approval | Next payment |
|---|---|---|
| October plan, admin approves Oct 10 | October | November, from the Oct 25 run (around Nov 1) |
| October plan, admin approves Oct 27 | October and November (catch-up) | December, from the Nov 25 run (around Dec 1) |
| November plan, admin approves Oct 28 | November | December, from the Nov 25 run (around Dec 1) |
| August plan, admin approves Sep 3 | Nothing for August | The employee submits a One-Time Reimbursement for August |
When a month isn't paid automatically
- The admin approved after the plan start month ended. Months before approval aren't paid retroactively, so the employee submits a One-Time Reimbursement.
- The month was already reimbursed, for example through a One-Time Reimbursement. There's no double payment.
- The plan starts before the employee's ICHRA benefit begins. Months before the benefit starts aren't paid.
- The employee's allowance for that month is already used.
- The employer's bank account doesn't have enough funds when the payment is pulled. The transfer fails, and support follows up with the employer.
What to tell your clients
- Admins: approve new AR setups promptly, ideally before the employee's plan start month ends and before the 25th. Keep enough funds in the connected bank account, because first-month and catch-up payments are pulled at approval, not on the 25th.
- Employees: set up AR as soon as you've bought your plan, choose the correct plan start month, and nudge your admin to approve. If any month is ever missing, submit a One-Time Reimbursement.