The Advantages and Disadvantages of a Health Spending Account


Nowadays, a lot of people are more concerned about their health than
anything else. They are more careful in choosing the foods they eat
because of the fact that most diseases nowadays involve in the lifestyle
of man. Well, some people are also practicing a work-home routine to
avoid any accidents that might happen to them when they are outside of
their house. But sometimes, some unexpected things really do happen and
having a health spending account is the best option that you could get.Sure
you can get a traditional health insurance plan where you pay each
month and your employer may even cover some or all of this type of plan.
With these traditional health insurance plans there are certain
requirements and restrictions.  For example, there are certain
requirements that you need to follow for you to become eligible. A
qualified applicant must be 65 years old and below and have a
high-deductible health insurance plan. The plan should only be your
insurance coverage as well, if you are covered by any other health
insurance plans, then you do not pass their requirements. That includes
health insurance plans for vision, dental and long term care.  These
plans typically only cover 80% of traditional health expenses, such as
medical and dental visits.  You are responsible for paying out of pocket
for the rest.  Non traditional health expenses such as massage therapy,
Chiropractic care, dental surgery, private health clinics, etc are not
even covered.As an employee, the advantages of having a HSA are
that you have full control to the money that you will be spending. A
certain amount of money is set aside by your employer in your HSA to be
used as you deem fit to cover a large variety of routine health care
expenses for you, your spouse, or your dependents. From the employer
perspective this is a valued and economical way to provide tax free
health benefits to employees, and all the money invested by the employer
is 100% tax deductible (including any fees). With this result, still a
lot of people prefer to have HSA because everyone has different health
needs and no one should be able to dictate that only traditional types
of health treatments are right? Owning or managing a business sometimes
means you need to travel to other provinces in Canada, or to other
countries to do business.  An HAS gives you the flexibility to travel
and still obtain coverage for the type of health treatments that are
most relevant for you.  As long as the health practitioner is licensed
in the location you happen to be in, you can rest assured things will be
covered. An HAS is an ideal small business health plan. It doesn’t
matter what type of business you own, as long as you are a Canadian
incorporated business, Although an HSA is good at covering a large
variety of routine health care costs, it is not provide an insurance
component to cover accidents or medical emergencies, although you can
purchase a fixed term travel insurance plan and run this through your
HSA. If you require true accidental or emergency coverage then there are
plenty of options out there to investigate, including a stripped down
traditional health insurance plan, or visiting one of many financial
institutions who provide this type of emergency coverage.

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Article submitted by Tara Malik “SEO Queen” for that is a
division of Adaptive Benefits Canada (ABC). ABC works with entrepreneurs
to develop highly flexible, user controlled benefit solutions. They
continually strive to eliminate constraints and restrictions inherent in
existing solutions. PreTax Health is exactly this type of solution; it
represents the next generation in Health Spending Account
PHSP, and has “leap-frogged the traditional approaches to Health
Spending Accounts”. Visit PreTax Health website if you are looking for
an ideal small business health plan.
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