The main difference between these two benefits is the availability of what can be submitted as a claim. For a health spending account, only CRA-approved medical expenses can be submitted.

Conversely, eligible claims to a wellness spending account are geared more towards items that promote a healthy lifestyle like gym memberships and professional development classes.

A health spending account provides employees with the option to choose what to claim. For example, if the monetary amount for a benefit like vision coverage was moved from the traditional benefits plan and into an HSA, it would provide an employee who doesn’t wear glasses with the opportunity to put that money towards something that has significance to them.

Yes! Health and wellness plans can be offered as a standalone benefit or they can be combined with a traditional benefits plan to provide a comprehensive solution for your employees.

A health spending account can help to manage costs through what is called an allocation of benefits.

Using vision care as an example, a common benefits plan will have $150-400 every 24 months to cover vision costs that extend beyond eye exams. If you’re already paying for vision coverage within your benefits, the cost per claim ends up being around 30% on top of the claim itself depending on your firm’s target loss ratio.

By transferring vision coverage to your HSA, you’re not only managing costs but providing more value and flexibility for your employees. Vision coverage is just one example to replace with an HSA.