Health spending accounts are personal health insurance plan that allows reimbursement for a broad selection of medical expenses offered by a doctor or pharmacist. The account is adaptable because it can be set up as a stand-alone policy or as an addition to an existing group or personal health insurance policy. The ability to customize the account and the capability to deduct personal expenses and transform them into a corporate deduction makes an HSA an attractive option for business owners.
For Employees:
1: HSAs pay for medical expenses, including conditions that might not include in a typical group insurance plan, such as laser eye surgeries, orthodontics, etc.
2: HSAs cover 100% of the cost with no deductibles and no co-insurance, as opposed to some group plans that cover only 80 % of the expense or less.
3: HSAs give employees and their dependents freedom because they can decide how to use the funds in the account to pay for their preferred medical bills.
4: HSAs are guaranteed insurance plans without medical underwriting and pre-existing medical conditions.
5: HSAs are tax-free and provide benefits to employees.
For Employers:
1: The most significant benefit for companies is that HSAs can be tax-free for the business.
2: HSAs are not subject to fees. Therefore, they’re cost-effective for employers.
3: Employers have the choice of a fixed budget.
4: Employers can set the limit they want and then categorize their employees into different categories.
5: May carry the HSA’s unused money to the following year.
Ottawa Life Insurance brokerage service handles life, health, disability, and group benefits. We get dedicated to providing our clients with the protection they require. Call us at (613) 454-1424 or email info@ottawa-lifeinsurance.ca for individuals and businesses in Ottawa.
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