Health Care Spending Accounts
Small Businesses Across Canada Are Getting On Board:
Health Care Spending Accounts (HCSA) are not new, they have been around for decades. Traditionally afforded to employees of large enterprizes, a HCSA was implemented as an additoinal perk of working for a fortune 500 type of organization. Todays reality has small and medium sized business searching for alternatives that will help them reign in the out of control increased premiums of traditonal health benefit plans. Many business owners are turning to HCSA's as a viable alternative.
What is a Health Care Spending Account?
A Health Care Spending Account (HCSA) can be compared to trust account in which a pre-determined dollar amount established by an employer for his or her employees to be used on health and dental items not covered by a group plan and considered by Canada Revenue Agency www.cra-arc.gc.ca . as a eligible tax right off to the employeer and tax free income to the employee. Amounts can be established by class of employees or by single/couple/family status.
What are the benefits to an employeer for implementing a HCSA?
- Save 10-30% on group benefits costs.
- Better cost control, the effects of inflation and premium increases due to un forecasted usage is now negated.
- Employers can contribute what ever they can afford with out worrying about increases.
- Small companies starting with 3 or more employees can participate.
- Minimal admin.
- Ability to attract and retain employees.
- Attracting and retaining employees
- Two, three and sometimes four generations of employees working together
- Younger employees looking for increased flexibility
- Offering benefits/incentives that will meet the needs of all employees
- Budget, controlling cost today and in future
- Cannot afford to continue providing a traditional health benefits program due to rising costs.
- Are not offering health benefits to employees, cost is a major inhibitor.
Svab insurance is happy to annouce we have partnered with Benefits by Design, to offer Health Care Spending Accounts. For more information or if you have any questions please contact us.
