Health Spending Accounts
Does your benefits program provide employees with flexibility and choice?
The Immix Group can help you determine if a Health Spending Account could complement or replace your employee benefits program. Health Spending Accounts offer a practical, cost-effective way to meet the changing needs of today’s employers and employees.
Plan structures
Different spending-account structures support different employer goals, reimbursement rules, and employee experiences.
Health Spending Accounts offer a pre-determined dollar amount of available spending for the reimbursement of CRA-approved eligible medical expenses. Benefits are non-taxable.
Wellness Spending Accounts provide a pre-determined dollar limit for non-CRA eligible wellness expenses such as fitness memberships, sports equipment, supplements and vitamins. Benefits are taxable to employees.
Cost Plus Plans provide a tax-efficient reimbursement method for CRA-approved eligible medical expenses when an insured health or dental plan is in place, but the item is not covered.
Private Health Service Plans allow for tax efficient and CRA-compliant reimbursement of eligible medical expenses for incorporated companies, often used in the absence of an insured health or dental plan.
What it is
Health Spending Accounts offer a pre-determined dollar amount of available spending for the reimbursement of CRA-approved eligible medical expenses. They can complement a group benefits plan by helping employees cover eligible expenses outside of insured benefits or beyond plan maximums.
Health Spending Accounts can reimburse employees for many CRA-approved eligible medical expenses that are not covered by provincial health coverage or by a typical group plan.
CRA-approved eligible medical expenses can include medical, dental, vision, massage, chiropractor, private physician, MRI, and more. Benefits are non-taxable when the plan is structured properly.
Health and wellness expenses that are not CRA-eligible and are therefore taxable benefits. Typical expenses can include gym memberships, group fitness classes, personal training, nutrition, fitness equipment, and supplements.
Practical considerations
Health Spending Accounts can give employers more control over spend, while digital administration support helps make the experience easier for both employers and employees.
Health Spending Accounts help contain costs in two ways:
With Health Spending Accounts, you have complete cost control and certainty, allowing you to plan effectively and eliminate year-end surprises. Employers can offer the flexibility in health care choices that their employees want, while holding plan costs at a level that is affordable.
All major carriers allow for the integration of health and wellness spending accounts into the benefits offering.
Immix also works with
to support digital health and wellness spending account administration through a real-time, paperless application.
Start the conversation
If you are evaluating whether a Health Spending Account could complement or replace part of your employee benefits program, Immix can help you assess the right structure and what makes sense for your team.
