Many people are surprised at the wide range of eligible expenses that can be paid for with an HSA. Areas of eligible care include preventative care, special care services, dental and vision, and more. Funds withdrawn from Health Spending Accounts are tax-free as long as they are used for qualified medical expenses. Read on to learn more.
HSA-Eligible Expenses Not Covered by Group Plans
One of the many reasons that HSA accounts are so beneficial is that they can pay for expenses that are typically not covered by group health and dental plans. In some cases, much of the traditional coverage within a group plan can go unused by many employees; this makes an HSA all the better because employees can choose for themselves how they want to spend their health care dollars.
The following are common health care expenses that are absolutely necessary for many individuals and families but are often not covered by group plans:
Dental services & Orthodontics
Services such as trips to the hygienist or dentist for cleanings or checkups, are often covered under group plans however more and more plans are choosing not to include orthodontic services. With an HSA the employee can use the funds on a wider range of dental services including orthodontics, bridges, crowns etc. The employee has the flexibly to decide which services to use it on that match their current needs.
Contact lenses and prescription glasses are generally covered by the majority of insurance companies. However, certain surgeries are very seldom covered. Take laser eye surgery, or optometrist services for instance, these services are eligible services for Health Spending Accounts.
Fertility drugs are extremely costly and unfortunately, very rarely covered under group insurance plans. Couples or individuals interested in fertility drugs will definitely benefit from an HSA plan, as fertility drugs can be considered eligible expenses under HSAs. Typically, this type of coverage isn’t needed long term.
Services for special needs children
It is important to point out that children who require special needs services are never covered under group plans. However, with an HSA numerous eligible services are covered. These services might include schooling, tutors, massage therapy, speech-language therapy, assistive devices, and other programs and services.
Unfortunately, dependent parents also fall can under the “never covered” umbrella with group insurance plans. With an HSA dependant parents will be eligible for services such as nursing home care, special programs, physical therapy, and more.
Eligible Expenses When Used in Conjunction With Group Plans
If clients decide to add a health spending account to their group plan, this can be an excellent way to provide even more options for coverage for their employees as well. There are numerous eligible expenses that many employees want to be able to pay for, but as stated, they’re not covered by group plans.
In these cases, group plans may be sufficiently beneficial for covering the basics for employees, and then when it comes to adding additional benefits, HSAs can be extremely helpful. For example, an HSA can be used to cover:
- Co-insurance amounts
- Amounts above maximums or limits
Again, it’s up to the individual employees and their families to decide how they want to spend their HSA dollar.
Find Out More About Health Spending Accounts
Finally, keep in mind that HSAs are extremely beneficial to you as an advisor. They are a little-known health care plan that can be used as a group plan for many businesses.
Often, employers have no idea that they can offer an HSA to their employees.
We’ve created tools to help you sell and promote HSAs with your clients, visit our Resource Centre for more information. For answers to questions related to HSAs, you can also contact one of our Benefits Consultants by giving us a call at 416-626-8786 or sending us an email at email@example.com.