Health Spending Account

Employer Advantage

Defined Contribution vs. Defined Benefit

Change the focus from reimbursing specified medical and dental services, to reimbursing any product or service, permitted by law, up to a certain maximum. This will allow staff to make personal health care decisions when they make purchases with their limited resources.

Claims Control

Instead of you deciding how to allocate limited resources by dictating what level of health care will be covered, each employee has that responsibility.

Cost Increases

The plan sponsor decides the cost of the benefits by adjusting the funding formula. The double-digit cost increased of the past two decades can become history.

Employee Appreciation

Instead of complaining about the claims that are not paid employees are paid everything possible within their personal spending limit. Monthly reimbursement cheques remind staff of the benefit that you provide.

Discrimination

Does marital status and number of dependents have any impact on your pay scale? If not, then base the funding schedule on a rate per employee or percentage of income. Traditional plans cost two to three times as much for employees with dependents compared to those without.

Another important feature a defined contribution plan is that all employees can be treated equally without discrimination based on dependent status.