How Does the HCSA Work?

These accounts are pre-tax accounts set up in the names of employees, funded by the school,
and administered by Manulife Financial. Schools are invoiced 1/12 of the annual amount plus
a Manulife administration fee of 6.5% each month on the existing CSI Insurance Plan
invoice. Employees authorize payments from the accounts for expenses that are not covered,
or are only partially covered by the insurance plans. HSCAs are tax-smart because they are
funded with pre-tax money, and payouts are not taxable to employees (outside of Quebec).



Full Issue: No. 323 - November 21, 2008

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