Flexible Spending Accounts

Would your employees benefit from a compensation plan that is 100% completely free from Federal and Provincial income taxes?

The Prosure Group offers you choice - Healthcare Spending Accounts (HSA), Cost Plus Accounts and Wellness Accounts.  You choose the type of account (s) that best meet the needs of your company and your members.

These types of accounts offer a much more cost effective way to reimburse your employee’s medical expenses than traditional insured Health & Dental benefits.

Health Spending Accounts

One tool, many applications

A Health Spending Account (HSA) is an easy way to make benefit plans more relevant to today’s diverse workforce.  With an overall maximum, employees have the flexibility to use their eligible amounts according to their needs.  An HSA can be a great supplement to a traditional benefits plan or it can be used on a standalone basis, to replace some forms of coverage to enrich your plan, add flexibility, or control costs. 

A Health Spending Account offers cost containment.  Different from insured benefits where the premiums may rise every year in line with rising costs and utilization rates, employers decide how much to allocate to employees and are provided with comfort knowing they will not exceed that amount.  Funds that are not used for claims within the specified time period remain the property of the employer. 

The Prosure Group offers flexible plan design and funding options together with industry leading turnaround time for claim payments.  Our client focused service team is here to help.

Key Advantages include:

For Employers:

  • Maximum cost per year is easily understood.
  • 100% tax deductible business expense.
  • Flexibility to offer a more extensive range of benefits than a traditional group plan.

For Employees:

  • Gives employees choice.
  • Simple to understand.
  • Non-taxable to employees (except in Quebec).

Cost Plus

Cost Plus is a cost-efficient and tax-effective means of covering Health and Dental expenses or supplementing existing group insurance benefits. Cost Plus can:

  • Cover items not covered or paid for by your group plan.
  • Reimburse these costs on a tax-free basis to individuals.
  • Allow a 100% tax deductible business expense.

Cost Plus is a proven means of covering Health, Dental or Vision Care expenses not eligible under your regular Employee Benefits program. Used correctly it can be considered a Private Health Services Plan (PHSP), recognized by Canada Revenue Agency (CRA) as a vehicle which allows businesses to deduct health-related expenses eligible under the Income Tax Act. Eligible Cost Plus charges are treated the same as group insurance premiums and can be a deductible business expense. Cost Plus benefits paid to individuals are generally not taxable in the hands of the employee who receives them (except in Quebec where provincial taxes apply).

Canada Revenue Agency indicates that a cost-plus plan that is solely for the benefit of a shareholder/owner may not qualify as a PHSP.

Cost Plus covers all supplies and services considered eligible medical expenses under the Canadian Income Tax Act. This would include amounts over any limits in your benefit plan, the co-insurance amounts you are responsible for, or expenses such as orthodontic treatments that may not be part of your current benefit program.

Here’s how a Health Spending account or Cost Plus account works:

  • The employer allocates a specific annual dollar amount that the employees of your company can use.  Different amounts can be allocated based on employment class.
  • The plan can be set up in one of 3 ways: 1) any unused balance at the end of the year is forfeited by the employee, 2) unused medical expenses can be carried forward up to one calendar year, 3) unused amounts can be carried forward

Wellness Spending Accounts

We also offer you the flexibility of a Wellness Spending Account (WSA) which allows you to address employee health and wellness needs by providing support for mental and emotional health, physical health and quality of life. 

You are able to customize your plan by using our seven categories to choose which benefits you would like to offer to your employees.  You determine the annual amount allocated to the employee and choose to cover only employees or employees and their dependents.

Employees use their eligibility amount toward expenses related to maintaining and enhancing health and wellness.  Expenses covered under a WSA are not eligible medical expenses as defined by CRA, so this benefit is taxable to the employee.   We will provide monthly statements so you are able to process the tax.

The WSA can be purchased in combination with a Group Benefits Plan or a Health Spending Account, or as a standalone product.

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