Health Spending Accounts
A Health Spending Account is a plan that provides the flexibility to meet the unique and differing needs of employees.
At the beginning of each plan year an account is established for each employee with an amount determined by the employer. Throughout the year, the employee can use their funds to pay for Health, Vision and Dental expenses for themselves or their dependents that are not covered under their health insurance or Group Benefits Plan. Health spending accounts can also be used to top up payment for services not fully covered under their benefit plan or a spouse’s benefit plan.
An HSA controls costs for the employer as employees cannot claim more than their designated amount. It also provides flexibility for the employee as each employee has the choice of how to spend their allocated amount. Unused contributions revert back to the employer if they are not used by the employee within a specific timeframe.
The cost of an HSA is tax deductible to the employer and benefits received by employees are tax-free.