Employers can use a Private Health Spending Plan (PHSP) or Health Spending Account (HAS) to top-up your current insured benefits by providing all employees, or employees in a specific class, with the spending allowance as a tax-free perk or reward for service and loyalty.   You design the plan in accordance with the company’s budget, the company’s philosophy, the company’s need to compete for and retain qualified employees.   This is an opportunity to offer a type of “flex” enhanced benefit to employees without ever having to increase your costs.

The Sanofi Aventis Healthcare Survey is conducted every year to capture the views of Canadian employee health benefit plan members on all aspects of their employer-sponsored health benefit plans and their views on Canada’s public health care system.   According to their 2011 survey 73% of those aged 18 to 34 would find a Health Spending Account useful, and 57% among respondents aged 55 and older would find them useful. For smaller companies it is difficult to offer a full flexible benefits plan however adding a Health Spending Account could provide the flexibility that allows your employees to decide how and when to use their spending account.  It allows you as the employer to provide employees with a tax-free spending account to be used for any medical or dental expenses that are not covered in whole or in part by the traditional group policy.  The Health Spending Account is both an employee appreciation and retention tool.  Your traditional benefit plan offers them the financial security of the insured plan but the addition of the Health Spending Account would give them more freedom and choice.

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