The Benecaid Health Spending Account lets your employees choose the benefits
The Benecaid Health Spending Account is like a bank account that is established
exclusively to pay for health-care services, using pre-tax dollars.
HSAs can be used to augment or replace your group benefits plans. Unlike traditional
plans, which often include items that you or your employees don’t want or need,
a Benecaid Health Spending Account, lets you choose which healthcare services you
want. You decide how much you want to contribute for each of your employees, and
they choose the services on which they wish to spend their HSA. Your employees get
the choice and flexibility you want – and you have complete budget certainty for
your health benefits plan.
More choice, and tax savings – now that’s smart business.
How the Benecaid Health Spending Account Works
- The company (employer) makes deposits on behalf of the employee(s) into a Health
Spending Account to be used to pay for eligible health care expenses. (Sole proprietors
make deposits on their own behalf.)
- The employer decides how much it will contribute to each employee’s Health Spending
Account. Deposits can be made monthly, quarterly, semi-annually or annually.
- The deposits are a non-taxable benefit for the employee and a 100% business deduction
for the company.
- The Benecaid Health Spending Account holder uses the tax-free funds in their account
to pay for the eligible healthcare
expenses of their choice.