Health Spending Accounts

HSAs are the latest innovation in employee benefit plans and are becoming very popular as a tax-effective way for employers and employees to partner in benefit plan cost management. As the name implies, they are pre-tax accounts set up in the names of employees, funded by employers, and administered by insurers. Employees authorize payments from the accounts for expenses that are not covered, or only partially covered by the insurance plans. Things like the other 50% of major dentistry, or chiropractic expenses beyond the plan limit are covered, as are payroll deductions for health and dental plans and coverage for dependents not eligible under the group plan. HSAs are tax-smart because they are funded with pre-tax money, and payouts from them are not taxable to employees (outside Quebec).
The CSI HSA is intended to enhance the flexibility of our flex plans, by making it possible for people to use benefit dollars exactly as they see fit. Update 297 contains more details about HSAs and is available online at http://www.CSIonline.org.

Full Issue: No. 303 - May 25, 2006

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