myHSA (Health Spending Account)
Health Spending Accounts are used by employers to provide Health and/or Dental plans for employees, in conjunction with insured plans or as standalone plans. All qualifying medical expenses under the Income Tax Act are eligible, which is different from traditional group insurance plans (insured PHSP’s) which offer restricted benefits and dollar maximums.
Health Spending Accounts offer substantial reductions in actuarial, administration, adjudication and marketing expenses compared to insured PHSP, maximizing employee benefits and reducing Employer cost. This type of plan allows the employer to manage their health benefits “spend risk” by defining the annual allowance and removing the risk of annual claims experience based renewals.
In summary, Health Spending Accounts offer employers a mechanism for managing health benefit costs while providing employees flexibility in their health benefits allowance spending.