Article provided by: Money Walk
While the health care system in Canada is far more generous than our neighbors to the south, there are still out-of-pocket expenses that arise. Don’t be unprepared when those come around. Contact Money Walks today and learn more about our health spending account in Calgary.
What is a health spending account?
A health spending account is an account established so an individual can cover out-of-pocket medical expenses. Health care coverage in Canada is more generous than in other countries. However, there are still expenses not covered by provincial plans. Below are some examples of items not covered by provincial plans.
- Prescription drugs
- Dental care
- Long term care
Care also varies from province to province. A health spending account allows individuals flexibility to pay for these expenses.
Benefits to a health spending account
These plans provide enormous benefits to both employers and employees. Instead of an employer offering a supplemental insurance policy to their workers, they can fund an HSA instead. The tax relief to a small business is tremendous. Also, they know exactly how much their expenses are with HSA’s as they know how much they paid into and reimburse each account holder for. Amounts vary with supplemental insurance plans. With HSA’s, you also can write off 100% of the expenses on your taxes as a business owner.
Employees also like them since the benefits they receive are straightforward. Even with supplemental plans, there were still out-of-pocket medical expenses. With an HSA, that is no longer the case. Unless they spend more than what is in their account, they do not pay any money to select expenses out-of-pocket. For people who do not take large amounts of prescription drugs, this is a great option. These are also great for anyone with a pre-existing health condition. Those individuals can not always get coverage under supplemental plans. HSA’s cover everyone equally.
Setting up a health spending account
Third-party administrators run health spending accounts. The business providing these to their employees is not involved in the setup or maintenance of the accounts. The companies who set up and run these for companies make their profits on setup and maintenance fees. They also handle all the paperwork and mailing of reimbursement checks to employees for eligible expenses. We can help you set up your health spending account in Calgary.
There are a few types of HSA plans that businesses can set up. A business can create a well-defined HSA, a wellness plan account, or a flex plan. Each one affects what types of expenses an employee can claim, so it is a decision that requires thought on the part of the employer.
A drawback to HSA’s
The biggest drawback of an HSA is that it does not cover emergencies. That is where a supplemental insurance plan would be a better investment for your employees. However, an HSA is cost-effective, especially for small businesses, and are very popular with employees.
Give Money Walk a call today and let us help you find the best health spending account in Calgary for your staff.