A Health Spending Account (HSA) offers more coverage than employees might realize. While its primary function is to pay for medical expenses not covered by your Provincial plan, there are other services that qualify for coverage outside of the doctor’s office.
Also, an HSA may be used in addition to traditional health insurance or as a replacement. They are ideal for those who are self-employed or run a small business and want to have coverage without the high premiums.
An HSA Offers More Flexibility in Coverage
With an HSA, an employee will put money aside each paycheck, pre-tax, into an account that they can then use throughout the year for medical expenses. These are an ideal option for those with a high deductible on their insurance plan, or for those that do not want a traditional insurance plan.
An HSA is extremely flexible when it comes to coverage. In fact, they are arguably more flexible than the average insurance plan. US News considered them a useful tool to help with copayments, deductibles, and uncovered medical expenses.
There are also multiple tax advantages that make them more flexible than regular insurance. After all, an insurance company could not be charged for a purchase at a regular drug store, unless it was for a prescription medication.
Benefit of Offering HSAs for Employees
An HSA is ideal for any employer, and it could be what attracts the best talent to a company over the competition.
Employers need to offer more flexibility when it comes to health insurance, but they also need more options that suit every employee’s concern. After all, one employee may have a child with special needs, while another is caring for an aging parent.
An HSA can also be offered to high-level executives to offset additional medical costs. For co-insurance and employee cost sharing, the HSA may offset the costs too.
Most importantly, it puts the company in control of the expenditures for their health and insurance offerings to their staff. It can help employers with the paramedical expenses, vision costs, and dental insurance benefits that they cannot afford to provide their employees. Also, it ensures employees still have access to the medical care they need, without the high cost of paying out-of-pocket.
Work with a Trusted HSA Expert
It is important that employers know where to turn when they need to use an HSA to supplement their employees’ high deductible insurance plans. A third-party HSA administrator with several years of experience is ideal to ensure the company obtains an HSA that works best for their business.