Health spending account (HSA)
A fixed allowance employees spend on eligible health costs.
An HSA gives each employee a set annual amount to claim against eligible medical and dental expenses. The employer's cost is capped at the total allocated plus administration, with no renewal increase to negotiate.
Eligible expenses generally follow CRA medical expense rules, which is broader than most insured benefit schedules — but the allowance offers no protection once exhausted.
What this means for a BC plan
HSAs work well alongside a core insured plan for BC employers wanting cost certainty. As a full replacement they leave employees exposed to exactly the high-cost claims a plan exists to cover.
Related terms
Where this comes up
HSA vs traditional plan · All glossary terms · Ask an advisor directly
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