Health are Spending Accounts

With Health Spending accounts, employers can offer the flexibility in health care choices that their employees want, while holding plan costs at a level that they can afford. Health Spending Accounts reimburse employees for many health-related expenses not covered by the provincial health coverage or by a typical group plan. Best of all, Health Spending Accounts give employees significant benefits without giving employers significant costs. Employees appreciate the individuality of coverage that Health Spending Accounts allow. Applied in conjunction with an existing group benefits plan, a health care spending account can be used to "top up" core benefits and pay for expenses not completely reimbursed by the plan. These include amounts exceeding the plan's maximums, deductibles, coinsurances or any other portion of a claim that isn't paid under the plan.

Tax Advantages

Health Spending Accounts provide a way for clients to deliver tax-effective compensation to their employees, using pre-tax dollars. At the beginning of the year, the client decides on the amount to be available in the Health Spending Account. Because these dollars are directed to the account before income tax is deducted, compensation provided through these accounts goes much further than if employees were to pay for health-related expenses themselves.

Expanded Eligibility

CCRA’s broad definition of a dependent permits employees to cover expenses for extended family members – a perfect solution for employees wanting to cover expenses for family who would not otherwise be eligible under their benefit plan (ex. Parent, Grandparent etc…).