What Is a Healthcare Spending Account? [Video]

Karen Taylor Smith is the Senior Manager, Group Benefits at The Benefits Trust. She has worked with The Benefits Trust since 1997, using her deep knowledge of employee benefit plans to customize the right solutions for businesses. Karen speaks, blogs, and contributes regularly to various media outlets on group benefits and compensation topics.

What Is a Healthcare Spending Account? [Video]

A healthcare spending account (HCSA) is a benefits solution that can be used either as a complement to a core health and dental plan, or as a standalone option.

HCSA video imageWhat Is It?

Essentially, an HCSA is a pool of money available to employees and their families, which an employer funds monthly throughout the year.

It’s great for employers because they can:

  1. 1. Control how much they would like to spend on the HCSA
  2. 2. Define “groups within their group” to customize how much funding each group of employees receives (can be based on seniority, position, etc.)
  3. 3. Count it as a 100% tax-deductible business expense

It’s great for employees because they can:

  1. 1. Spend their funds on any Canada Revenue Agency (CRA) approved expenses (encompassing much more than is covered by conventional benefits plans)
  2.  2. Receive tax-free benefits dollars

If you want to learn more about how HCSAs work and how they can help your business, watch our brief video:

Whether you are looking for creative ways to control your health and dental expenditures or a new strategy for rewarding your key employees, a healthcare spending account can be an ideal solution.

>> The Benefits Trust can help you integrate an HCSA into your current plan, or build a new customized benefits solution unique to your business. Contact us today!

Check out our FREE eBook for a comprehensive look at HCSAs: “The Smart Business Owner’s Guide to Healthcare Spending Accounts.

More on HCSAs from The Benefits Trust:

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