Servicing: Toronto, London, Windsor, Hamilton, Mississauga, Ottawa, Waterloo, Kitchener

Health Spending Account

This is one of the relatively new innovative forms of benefit plan alternatives companies can utilize and best of all can cap expenses for the employer. Contact Wise Financial Group Inc. toll free 1-877-779-4731 or email info@companybenefits.ca for further information.

»Employer Advantages

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  • Employer contribution costs can be predetermined and fixed.
  • Future employer HEALTH SPENDING ACCOUNT costs not impacted by health and dental claims experience.
  • Internal equity- all employees are treated equally in terms of employer contributions regardless of marital status.
  • No employer involvement in health and dental claims.
  • Employees are required to become directly involved in the management of their health and dental expenses and the timing of expenditures.
  • The employer has flexibility to vary contributions by class of employees.
  • Cost sharing is normally arranged such that employees pay the cost of the Supplementary EHC + Dental Program.
  • The Employer need no longer be concerned with plan design and can better meet specific needs of each employee.

»Employee Advantages

  1. Much broader basic health and dental expenses can be claimed under a "Medical Dental Spending Account", based on the definition of eligible claims under a "Private Health Services Plan" per Federal Income Tax Act, Sec. 118.2 (2) and IT-519R2 (limited only by employer funds contributed to HEALTH SPENDING ACCOUNT)For example:
    • Laser eye surgery
    • Major restorative dentistry
    • Orthodontic services
    • Cosmetic surgery
    • Cosmetic dentistry
    (No deductible, no co-insurance – benefits are limited only by employer contribution amount)
  2. Under HEALTH SPENDING ACCOUNT coverage can be provided to extended family members and for whom the employee claims a tax deduction
  3. All employees receive same employer contribution: Employees with family members, and those with high medical/dental expenses, are no longer subsidized by other employees.
  4. Direct submission of health and dental claims to an insurer and use of their Pay-Direct drug/dental card ensures confidentiality of health information.
  5. Unused HEALTH SPENDING ACCOUNT balances can be carried forward to next Plan Year and will be used first. At the end of the second year following any unused balances forfeited to employer.
  6. Employer contributions to HEALTH SPENDING ACCOUNT do not constitute a taxable benefit, and all claims paid are tax-free benefits(except for Quebec residents).
  7. Employees purchase the Supplementary EHC Program via payroll deduction to cover health expenses other than those covered by the HEALTH SPENDING ACCOUNT, e.g. Out-of-Country; semi-private hospital; prescription drugs; etc.
  8. The Employee controls allocation of funds within the HEALTH SPENDING ACCOUNT to meet personal needs each year.

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