How to access your benefit dollars to help with your initial (binder) payment

A binder payment is an employee's first premium payment to their insurance company. Their plan isn't active until it's paid. Employees can use their StretchDollar benefit for it with auto-reimbursement, either right after they pay or before they pay.

How it works

When an employee sets up auto-reimbursement, they enter their plan start month. When you approve the setup, that first month is reimbursed right away: it's debited from your business bank account at approval, not on the 25th (or the 16th for employees who live in Massachusetts or Rhode Island). The money usually reaches the employee 3–5 business days later.

• Employees who have already paid upload their invoice or payment confirmation.
• Employees who need the money before they pay upload the page or invoice showing the amount due, then pay their insurance company once the reimbursement arrives.

Approve setups as soon as they arrive

There's no need to wait until the first of the month. If an employee already received a One-Time Reimbursement for their first month, auto-reimbursement won't pay that month again. Waiting can cost the employee their first month: if you approve after the plan start month has ended, that month isn't paid automatically.

Make sure your business bank account has funds when you approve, since the first month is debited right away.

When the first month isn't paid automatically

• The admin approves after the plan start month has ended. For example, the plan starts in August and the admin approves on September 3. The employee should submit a One-Time Reimbursement for August.
• The first month was already reimbursed, for example through a One-Time Reimbursement. Nobody is paid twice.
• The plan starts before the ICHRA benefit does. For example, the plan starts in August but the company's benefit starts in September. August isn't paid automatically. The employee can still submit a One-Time Reimbursement for August, and the employer decides whether to approve it.

For the full timing, see What happens when I approve an auto-reimbursement? Timing for admins.