Build a culture of care with the right health benefits

A Health Care Spending Account (HCSA) offers individuals greater control over their healthcare spending by providing a flexible alternative to traditional benefits plans. Unlike standard health insurance, which sets predefined coverage limits for various medical and dental procedures, an HCSA allows employees to allocate a specific amount of employer-provided funds toward eligible healthcare expenses each year. This flexibility empowers individuals to choose how they utilize their healthcare dollars based on their unique needs.

Employers determine the amount deposited into an employee’s HCSA annually. Employees then submit claims for eligible medical expenses, which are reimbursed from their HCSA balance according to plan guidelines. Providers process these claims based on the rules set by the employer, ensuring the funds are used appropriately.

It’s important to note that HCSAs are not cash accounts, and employees cannot withdraw funds for personal use. The sole purpose of an HCSA is to reimburse eligible healthcare expenses. Any misuse of the account, such as attempting to withdraw funds or use them for ineligible expenses, may result in negative tax implications, which should be avoided.

When structured properly, HCSAs provide tax-free reimbursements for eligible expenses. Employees can use their HCSA to cover out-of-pocket medical expenses that are not covered by provincial health plans or traditional group benefits. However, eligible expenses may vary based on the specific plan design and guidelines set by the HCSA provider and CRA.

Common eligible expenses

The following healthcare expenses are typically covered under an HCSA:

• Prescription medications
• Dental care (exams, cleanings, fillings, orthodontics)
• Vision care (eye exams, prescription glasses, contact lenses, laser eye surgery)
• Paramedical services (chiropractic, massage therapy, physiotherapy, acupuncture)
• Medical devices and equipment (hearing aids, orthotics, prosthetics)
• Mental health services (psychologist, psychotherapist, counselling services)

A Wellness Spending Account (WSA) is an employer-funded taxable benefit designed to support employees’ physical, mental, and emotional well-being. WSAs offer greater flexibility compared to standard health insurance plans, allowing employers to set the guidelines of the plan and employees to choose wellness-related expenses that align with their personal needs and preferences.

Physical Health & Fitness

• Gym memberships and fitness classes
• Personal training sessions
• Home exercise equipment
• Athletic apparel

Mental Health & Well-Being

• Counselling services (with non-HCSA-eligible practitioners)
• Stress management programs
• Mindfulness and meditation workshops

Alternative & Holistic Health

• Craniosacral therapy
• Reflexology and Reiki
• Holistic medicine treatments

Recreational & Lifestyle Activities

• Sports memberships and equipment rentals
• Yoga, dance, or martial arts classes
• Hobby-related expenses that contribute to well-being

Family & Childcare Support

• Daycare and preschool programs
• After-school care and special needs services

Transportation & Commuting Costs

• Bike-share memberships
• Monthly transit passes
• Parking passes (hourly, daily, weekly, or monthly)

Employees who feel supported and can customize their health and well-being services are more likely to stay with a company that invests in their happiness and long-term success.

Wellness programs can be scalable and cost-effective, with options that fit various budgets. The long-term benefits of reduced healthcare costs and improved productivity can outweigh the initial investment.

Yes, many wellness programs, such as virtual fitness classes, mental health resources, and online health workshops, can be accessed remotely to accommodate flexible work environments.

Wellness programs promote self-care by encouraging employees to take time for physical activity, relaxation, and mental health care, fostering a healthier balance between their professional and personal lives.

Yes, wellness programs can complement other benefits like health insurance, retirement plans, and paid time off, offering a more holistic approach to employee care.

Success is often measured by tracking improvements in employee health, engagement, satisfaction, and productivity, along with reduced absenteeism and healthcare costs.

Yes, most wellness programs are designed to be flexible, allowing employees to access resources and participate in activities during or after work hours.