Health Spending Account
Flexibility in Health Care Choices
Health Spending Accounts (HSA) have become a part of many group benefit plans. They
are a practical, affordable and cost-effective way to meet the changing needs of
today’s employers and employees.
Pacific Blue Cross Health Spending Accounts complement a group plan, reimbursing
employees for a wide range of health-related expenses outside of their standard
benefits. Health Spending Accounts are funded with pre-tax dollars through employer
contributions and are administered by Pacific Blue Cross according to Canada Customs
Revenue Agency (CCRA) guidelines. They provide the perfect mix of flexibility and
cost containment, adding value to group plans without adding costs.
Added flexibility
With Health Spending accounts, clients 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 clients significant costs. Employees appreciate the individuality of coverage
that Health Spending Accounts allow.
Cost containment
Health Spending Accounts help group clients contain costs. Employees become more
aware of health care costs as responsible plan consumers managing their own benefit
dollars.
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.
Getting Started
To better understand how Pacific Blue Cross can administer your Health Spending
Account, please contact your Plan Advisor or
Pacific Blue Cross.