A Health Spending Account is a wonderful addition to a compensation package for employees. A rare non taxable bonus, the Health Spending Account is key to attracting and keeping employees.
Here's 5 reasons your staff will love their Health Spending Account.
Employees know the dollar amount available for the benefit year
No restrictions, no co-payments, no specific practitioner dollar, service or visit limitations
Used when and where by the employee on demand
Equally distributed among employees
Each employee has control of their individual account and the flexibility to use HSA money as they wish for eligible benefits. There is no schedule of benefits outlining what an employee can and cannot claim as there is with a traditional insurance type plan. The employee chooses how to allocate their dollars as needed for themselves and family members. Money claimed is paid on a 1:1 ratio - there is no 'premium creep' with a spending account.
A health spending account best responds to the diversity of needs between employees.
Employees can focus their health spending account on their specific needs. Traditional plans give a little bit of everything but lack the ability to concentrate. A HSA allows employees to make choices, HSA's serve the individual and family vs the group.
There is no confusion about what can be claimed and what cannot be claimed. All the employee has to do is check their available HSA balance to know their available claiming limit, then file their claim.