WE SPECIALIZE IN GROUP EMPLOYEE BENEFIT PLANS WE SPECIALIZE IN GROUP EMPLOYEE BENEFIT PLANS

HEALTH SPENDING ACCOUNT (HSA)

Also known as Health Care Spending Account (HCSA)

A Health Spending Account (HSA) works for you if:

  • You are an incorporated business owner looking to pay for your personal out-of-pocket health and dental expenses in a tax advantageous way
  • You are a small incorporated business owner waiting to provide your employees with health and dental coverage in an affordable way. The HSA has no premiums, flexible limits, and controls employee benefit costs.
  • You are a large incorporated business owner who wants to provide supplemental coverage to your employees in addition to their group benefits plan in order to attract and retain top talent and promote employee wellness.

The main advantages of an HSA

  • An Employer (or Small Business owner) pays no premiums
  • Claims adjudication administration fees are typically very low (10% to 14% of the dollar value of the claim)
  • Employees can use the HSA to pay for any health and dental expenses up to the limit set by the employer (which is a great way to control employee benefits costs)
  • Any claim reimbursements paid out by an HSA to an employee are 100% Tax-free
  • The Employer decides the plan design and how much is available on the HSA
  • Ease of use for employees as they can submit claims through the mobile app and Employers can download financial statements, monthly invoices and print usage reports any time. Everything is online at your fingertips!

Example

Are certain coverages costing a lot on your current benefits plan? (Vision is a common and expensive benefit option). Take it out of the benefits plan and offer to your employees through the HSA instead. Get cost control without sacrificing coverage!

What can be covered under an HSA?

Under an HSA there is a wide range of eligible expenses that can be covered such as:

Medical Practitioners

Acupuncturist, Audiologist, Chiropractor, Dentist, Massage Therapist, Naturopath, Ophthalmologist, Orthodontist, Physiotherapist, Psychiatrist, Psychologist, Registered Nurse, Speech Therapist.

Travel Medical Expenses

If incurred while travelling, may be eligible.

An HSA is also a great vehicle to pay for expenses such as deductibles, co-insurance and any amount that exceeds a benefit plan maximum.

Medical Devices and Equipment

Devices to assist individuals with a mobility impairment, electronic speech synthesizers, hearing aids, heart monitors, optical scanners, orthopaedic shoes, power operated lifts, specially trained animals to assist the blind, syringes.

Other Eligible Expenses

Ambulance charges, artificial eye or limbs, CAT Scans, crutches, dental Services, denture repairs, diabetic supplies, fertility treatments, home-maker service & home care (when a household member is physically incapable of home care), injections, insulin, Lasik eye surgery, MRI scans, nicotine patch, organ transplants, Rx birth control pills and devices, prescription drugs, prescription glasses/contact lenses, urine analysis, vaccines, vision care, wheelchair.

The above expenses are just some examples but for the most complete list, please go to the Canada Revenue Agency website.

How exactly is the plan affordable?

The HSA gives you cost assurance. Never go above your budgeted amount. Not only that but the reimbursements are provided as non-taxable benefits to the employee, and the payments are 100% tax deductible business expenses.

What about Taxable Wellness Accounts?

Use your existing HSA budget and create a “menu” of benefits to offer your employees. Pick from a list that includes popular options like: gym and recreational memberships, family leisure costs, transit passes, educational learning, spa relaxation and more.

This taxable wellness account is popular for providing tailored choice to employees. Daycare coverage is important to one employee, while getting fitness classes reimbursed is significant to another. Show your employees that you embrace the different health and wellness needs in your workplace. Allow them to choose how to allocate their yearly spending dollars between a variety of coverage choices.

For more information, please contact us directly to speak to an advisor.

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