The benefits of Health Care Spending Accounts (HCSAs)
Health Care Spending Accounts will soon be available for purchase with our Group Advantage and Custom Group Plans. So, we wanted to give you the scoop on how they can enhance your clients' group benefit plan and some detail on how they’ll work.
Why introduce one?
- Employer Benefits
- Covers expenses outside of plan benefits
- Attract and retain top talent
- Addresses the diverse needs of employees
- Covers out-of-pocket expenses not covered by a benefit package
- Personalize coverage by choosing how to use their HCSA
- HCSA can cover deductibles and additional expenses when a benefit maximum has been reached
How does it work?
An HCSA covers medical expenses approved by the Canada Revenue Agency and is an option that can be added to a Group Advantage or Custom Group Health plan. Clients with an existing GMS group plan will be able to add an HCSA when their plan renews.
- Minimum allotment of $250 per employee to maximum of $15,000 total
- Minimum allotment of $50 per employee to maximum of $15,000 total
There is no premium for a HCSA. Since claims are invoiced to the employer, there is only a 10% administration fee. Any taxes are additional and a minimum annual administration fee of $100 per policy year will apply.
We're happy to say HCSAs are coming late this fall. Stay tuned for more on a launch date.