Health Care Spending Accounts
Benefit Choice and Self-Service
Health Care Spending Accounts (HCSA) have become a more popular feature of employee benefits programs. They can be a great way for employers to meet the needs of a diverse workforce and for employees to achieve tax savings on their health care costs. Here’s how they work:
- You allocate HCSA credits into each employees account every year.
- Your employee may use the allocated credits as needed for eligible health-related expenses not covered by the provincial health plans or by your organization’s regular benefits plan such as deductibles or co-insurance payments for health and dental expenses and health or dental expenses in excess of maximum coverage amounts.
The funds drawn from the HCSA to cover medical expenses are not taxed, and the employee is motivated to make careful spending decisions.
Stevenson & Hunt’s Group Benefit Teams can provide the expert assistance you need to set up an HCSA for your employees.