Health Spending Account
Workforces are becoming increasingly diverse and individual health needs can vary widely. As such it is becoming more critical for clients to offer benefit packages that satisfy ranges of employee needs. Health Spending Accounts are a flexible way to provide a solution for today's challenges.
How Health Spending Accounts Work
The client assigns a benefit amount called credits into the account. The employees then use these credits to pay for health care services and expenses considered eligible by CRA. A sample of expenses that can be covered includes:
- on-screen television dialogue decoders for the hard of hearing
- electronic speech synthesizers
- walkers
- wheelchairs
- deductible on services covered by a health or dental group benefits plan
Health Spending Accounts can be effectively combined with a group plan or it can be purchased on its own as a flexible benefits plan.
Advantages for Employees
With Health Spending Accounts, the employee has the flexibility in health care choices. Health Spending Accounts reimburse employees for many health-related expenses not covered by the provincial health coverage or by a typical group plan. Employees appreciate the individuality of coverage that Health Spending Accounts allow.
Advantages for the Employer
Cost Containment — With Health Spending Accounts you know the cost of the benefit program in advance, because you decide the level of credits to give employees each year.
Customized — Knowledge gained through detailed reports can help you identify changing trends and tailor your benefit plans to best manage needs and costs. The Health Spending Account can be made available to all employees or only specific individuals or groups.
Non Taxable — Health Spending Accounts provide a way for clients to deliver tax-effective compensation to employees using pre-tax dollars. All benefits relating to a Health Spending Account are non taxable.
Request Benefit Information