There are seven (7) key benefits of a PreTax Health Spending Account (HSA):
1) Tax Savings. Pay health care expenses using your companies before-tax dollars- write off 100% of all ‘out of pocket’ health care costs for owners, employees, and dependents. This will be treated as an Operating Expense on your company taxes and the line item is employee benefits. You deduct both your HSA expenses and all admin fees (i.e. the 10% admin fee). Based on average employee health expenses we find that businesses can typically realize tax savings of $2000+ per employee, each and every year by having an HSA.
2) Broad range of coverage (in and out of country). Traditional health insurance plans typically cover only a portion of traditional health expenses (e.g., 80% of routine dental cleanings) but they do not cover many other health expenses that employees normally
rely on i.e., orthodontics (braces), dental crowns, dental surgery, chiropractic care, naturopathic treatments, massage therapy, etc. A PreTax Health HSA covers a wide range of health expenses – and, its full coverage, not partial or % based. Also, if an employee in Canada travels
out of the country and they incur health expenses these health expenses will also be fully covered.
3) Complete Cost Control. Your company sets and manages the budget for your PreTax Health Spending Account – you decide how much to spend. You only pay for actual health care expense that are incurred. And with our Expense Carry Forward option (default for small businesses) you can submit the previous years expenses, or change the annual limits for employee groups directly from your management dashboard.
4) Minimize your Admin Work. PreTax Health have removed all the admin tasks normally associated with other Health Spending Accounts. Our unique real-time and secure online system provides unmatched convenience and gives you access to powerful claim tracking and expense
management tools – there is nothing like it in the industry.
5) Fast Reimbursement on ‘out of pocket’ Health Expenses. Owners, employees and dependents file claims discretely and securely and can get quickly reimbursed for 100% of CRA approved ‘out of pocket’ expenses. For added convenience and speed of reimbursement employees can setup Direct Deposit and you can electronically send funds from your company to your health spending account (by simply setting up a bill payment option from your bank to National HealthClaim)
6) Submit claims from your Mobile Phone in 10 seconds or less. You simply download the mobile app. (Android or Apple), take a picture of your receipt and your claims is automatically submitted for processing and payment. Imagine visiting your health care practitioner and submitting your claim before you walk out the door. This is a groundbreaking application that is unique in the industry.
7) Increases Employee satisfaction and retention. A Health Spending Account is highly valued by employees – it can increase employee satisfaction and encourage retention.
In fact, a study done by Benefits Canada a few year back illustrated that the majority of employees preferred health benefits to the equivalent salary increase.
As a final note PreTax Health is one of the only HSA’s we are aware of that is 100% CRA (Canada Revenue Agency) compliant. In fact, a few year back we hired PricewaterhouseCoopers to audit our system for compliance and it was found to be 100% compliant.