Health Care Spending Account
Health Care Spending Accounts provide cost certainty for employers and give employees flexibility when it comes to how they utilize their claims. Under a typical HCSA, an employee will be allotted an annual amount that may be used toward any eligible health and dental expenses. There are usually no annual maxiums under any particular benefit. So, if an employee wants to use the entire amount on massage therapy or on dental care, that is their prerogative.
Typically an HCSA will offer separate amounts for employees who are enrolled for Single and Family coverage.
The drawback of an HCSA is the amounts can be tapped out quickly by a few high claims, especially if there are several dependents on the plan.
HCSA's are often used to augment an existing traditional benefit plan. For example, a company may offer the full Extended Health Care benefit and include a small HCSA to cover additional expenses not covered by the core plan.
Lastly, a hybrid between a traditional group plan (with Life Insurance, LTD, Drug Coverage, Travel Insurance) and an HCSA (for all other Health and Dental expenses) is available through one of our carriers. Again, the benefit to the employer is cost certainty going forward while employees enjoy flexibility with their claims and still know that if they are prescribed expensive drugs or have an emergency will travelling, that it will not drain the funds from their HCSA account.