Healthcare Spending Accounts
A Healthcare Spending Account (HSA) is a uniquely designed account established exclusively to pay for health care expenses. It is like a bank account that is established exclusively to pay for health-care services, using pre-tax dollars.
An HSA can be established by a self-employed individual or by an employer to complement an existing group benefits plan. An HSA can also be set up as a stand alone health benefit. Unlike traditional benefits plans that could include items that employees may or may not need. An HSA lets employees choose from a very broad list of eligible healthcare services, as defined by CRA. All that is required is to decide on the amount of contribution for each of your employees. Employees get the choice and flexibility that they want. Another significant advantage of an HSA for employers is that the funding costs are pre-determined at inception of the plan, which adds an element of predictability to health care costs.
Contributions to an HSA, administration fees and premium taxes are all tax deductible expenses to the plan sponsor while the benefit to the employee is tax-free.
Best of all, an HSA can be established for any company size, from a sole proprietor to a large corporation.
Ask our professional benefits consultants on how we can help structure the best plan for your organization, save you money on and contain your group benefits cost.