Health Spending Accounts: An out of the box solution for controlling benefits costs
Updated: May 16, 2019
Have you been noticing an upward trend with the cost of your group benefits program? Does it have you questioning the value you and your employees receive compared to the ever-increasing cost?
If so, it probably has you looking for ways to control the cost of your employee benefits program. I totally understand. I regularly hear this issue from prospects who are looking to work with a new benefits advisor. Thankfully, I have good news. There is a solution that will allow you to predict your costs each year, without having to think twice about increases at your annual renewal.
At NewGround Financial, we have partnered with a leading provider to offer tailored health spending accounts (HSA). Like traditional benefits programs, an HSA allows you and your employees to claim things like dental expenses, prescription drugs, vision care and glasses, and paramedical expenses like massage and physio, etc. The main difference is that you get to choose how much coverage is available for each employee and your employees get to choose how to use their allotted amount (according to CRA guidelines).
Here are some examples to showcase the flexibility of a good HSA (worth $1,500 per person):
Employee A doesn’t usually get sick, but she enjoys relaxing with massages to keep her mental health in check. She claims a monthly massage on her HSA, totalling about $1200.
Employee B wears glasses and has a visit to the dentist, so she claims $100 for an eye exam, $400 for a new pair of frames and lenses and $1,000 for dental work.
Employee C uses medical marijuana to help manage chronic pain. He spends $125 per month on his prescriptions and claims the full $1,500 for the year.
Note: These are just a few examples, and the uses of an HSA can be just as unique and diverse as your workforce. There may be situations where employees incur costs greater than the coverage available.
Using an HSA can help you predict your costs by setting a maximum benefit amount per person. This leaves you in control of your costs, while empowering your employees to use their benefit dollars as it suits them, without restriction from an insurance carrier or their plan design.
Are you questioning whether an HSA would be enough to satisfy the needs of your team? Another feasible option is to combine one with a modified traditional benefits plan. This way, your employees can still enjoy the flexibility of the HSA for things like drugs and paramedical expenses while also appreciating the security of life and disability insurance. This is just one of the ways we’re able to create tailored options that are unique to your team.
I hope you found some value here. If you have considered a health spending account in the past, or if this post has opened your eyes to some new possibilities, contact us or book a meeting to discuss how we can explore new options for you and your team.
Disclaimer: This blog post is for educational purposes only. Please speak to a licensed insurance professional to discuss your benefits options.