Health Spending Accounts
(HSA) have become a popular alternative to traditional group health and
dental plans. They are practical, affordable, flexible and a cost-effective
way to meet the changing needs of many employers and diverse needs of their
employees. Many employers are integrating HSAs into their existing plans as
a means of cost control.
How HSAs Work
Health Spending Accounts are
pre–determined amounts of money provided to employees for coverage of
their medical and dental expenses. This amount is held in trust and claims
are submitted by employees and reimbursed in a similar fashion to a
traditional benefits plan.
These accounts ensure
controlled benefit costs for the employer and complete claim flexibility for
the employees. This allows flexibility for employees to claim the expenses
which are unique to their own families rather than restricting them to the
dollar limits and specific expenses an employer may set out in a traditional
benefits plan. One employee can replace his glasses and another can pay for
their children’s orthodontics.
Tax Advantages
Health Spending Accounts
provide a way for plan sponsors to deliver benefits to their employees using
pre-tax dollars. The plan costs are a tax deductible business expense and
the benefits are received tax-free. This can be a significant advantage for
owners, executives and key employees as they can pay for significant medical
and dental expenses with corporate dollars in the most tax effective way
possible.
Whether you are a global corporation of one, or just getting
started in the world of business, ProInsure can help you with innovative
health benefit solution to exceed your unique needs.
For incorporated professionals,
Benecaid health
benefits plan offers HSA in the form of a Health and Welfare Trust (HWT).
These “bank accounts” are 100% tax-deductible and can be used exclusively
for financing your health-related expenses. Excess funds roll-over
indefinitely and can be used for a broader range of health services — unlike
traditional health insurance plans.
For sole-proprietors of unincorporated businesses,
Benecaid health
benefits plan offers a Private Health Services Plan (PHSP). This account is
similar to that of a HWT with specific limits in terms of contributions and
a 2-year forfeiture from date of deposit for making claims.
View the Benecaid Video
Download the
Benecaid Brochure
