Health / wellness spending account
Health & Wellness Spending Accounts
Health and Wellness Spending Accounts are flexible benefit options that allow incorporated businesses to offer meaningful employee coverage while keeping costs predictable. They can be used on their own or added alongside a traditional group benefits plan to give employees more choice in how they use their benefits.
These accounts are especially useful for businesses that want to provide benefits in a simple, cost-controlled way. Whether you have one employee or a larger team, a Health Spending Account or Wellness Spending Account can help fill gaps in coverage, support employee wellbeing, and create a benefits program that better fits your budget.
Health / wellness spending account
Health Spending Accounts
A Health Spending Account, often called an HSA, gives employees a set dollar amount they can use toward eligible medical, dental, and health-related expenses.
Eligible expenses may include items such as prescription drugs, dental care, vision care, paramedical services, medical equipment, and other qualifying health expenses. In many cases, eligible HSA expenses are tax-free to employees and deductible to the business, making this a tax-efficient way to provide health benefits.
For employers, an HSA offers strong cost control because the business chooses the annual allowance. This helps create a predictable benefits budget while still giving employees meaningful flexibility.
A Health Spending Account may be a good fit if you want to:
- Offer flexible health and dental coverage
- Control your benefits costs
- Provide coverage to employees who have different needs
- Add flexibility to an existing group benefits plan
- Create a simple benefits option for an incorporated business
Health / wellness spending account
Wellness Spending Accounts
A Wellness Spending Account, often called a WSA, is designed to support the broader wellbeing of employees. While a Health Spending Account focuses on eligible medical and health expenses, a Wellness Spending Account can cover a wider range of lifestyle and wellness-related items.
Depending on how the plan is set up, eligible wellness expenses may include things such as gym memberships, fitness equipment, sports registration fees, mental health and wellness apps, personal development, childcare support, and other wellbeing-related expenses.
Wellness Spending Accounts are typically taxable to employees, but they can be a valuable way for employers to promote healthier lifestyles, improve morale, and give employees more choice in how they take care of themselves.
A Wellness Spending Account may be a good fit if you want to:
- Support employee health and wellbeing beyond traditional benefits
- Give employees more choice and flexibility
- Encourage fitness, mental wellness, and personal development
- Add a modern benefit to your compensation package
- Improve the overall value of your employee benefits program
Health / wellness spending account
Choosing the Right Option
Health and Wellness Spending Accounts can be structured in different ways depending on your business size, budget, and goals. Some businesses use them as a standalone benefits solution, while others add them to an existing group benefits plan to cover gaps and give employees more flexibility.
We work with all the major providers and can help you compare options, understand how these accounts work, and determine whether a Health Spending Account, Wellness Spending Account, or a combination of both makes sense for your business.
To learn more, contact us and we can help you explore whether a Health or Wellness Spending Account is the right fit for your team.