Health Spending Account
Also known as a Health Care Spending Account (HCSA), an HSA covers employees for Health and Dental Expenses. An employer sets the number amount of allotted funds for each employee. The provider reimburses the employee for Health and Dental services and or products. By maintaining a yearly amount, set by the employer, the costs to the employer are contained and manageable. The employee reimbursements remain tax-free.
Typically, the benefits offered are extensive. Usually, the expenses are for eyeglasses, prescriptions, paramedical and dental services.
Here is a comprehensive list of covered benefits:
Wellness Spending Account
Coverage from a Wellness Spending Account falls into these key areas:
- Additional health services
- Dental services and supplies
- Family (Child, day, elder care)
- Group-specific (Steel-toed boots, winter gloves, hardhats, standing desks)
- Services and safety (Legal, alternate transportation)
- Education and personal development (Proper designation, membership fees/dues, training/education)
- Equipment (Fitness, sports, heart-rate monitors)
- Hobby (Personal interest classes)
- Insurance Premium (Life, Disability, Health and Dental)
- Fitness (Gym/fitness annual membership, recreational programs, personal training, self-defence, kinesiology)
Like an HSA, the employer sets an amount to offer families, couples, and singles. The individual looks through the options and selects the best options for them. If they spend more on benefits than the amount offered, then they can have additional dollars taken off their paycheques. If they choose less costly benefits, then they may have leftover funds that they can use for an HSA.
Set amount for:
- Life, AD&D, Long Term/Short Term Disability
- Health benefits – 3 styles (Each style has three options.)
- Dental benefits – 3 styles (Each style has three options.)
This is a great option and renews every two years. A family can alter it in a new direction if there is a life-changing event in that family, such as:
- New baby
For more about HSAs, WSAs, and FSAs, check out this article by Collage Magazine:
Also, check our blog about Cookie-Cutter Vs. Customized Benefits, to learn more about how we can help you implement customized options for your business.
Have a question? Or need clarification?
Call to schedule an appointment with one of our advisors.