Health Spending Account
Provide an employer-funded amount employees can use for eligible health and dental expenses.
Explore Health Spending AccountsFlexible Plan Options
Give employees more ways to use their benefits.
Flexible plan options can work alongside insured benefits to help employers manage plan costs, respond to coverage gaps and offer employees greater choice.
Employee choice · Defined funding · Plan design flexibilityChoice · Funding control · Flexibility
Greater flexibility for employeesGive employees more choice in how available benefit dollars are applied.
More options for managing plan costsSelect an approach that connects employer funding to the plan’s intended purpose.
Built to work with the broader planUse flexible options to add to core insured coverage without overlapping it.
Flexible Benefits
Different approaches can address different plan needs.
Health Spending Accounts, Wellness Spending Accounts and Cost Plus are often grouped together, but they are not interchangeable. An HSA provides an allocation for eligible medical and dental expenses; a WSA supports employer-approved wellness expenses; and Cost Plus reimburses qualifying medical and dental claims as they arise.
Plan Options
Choose the approach that best fits the goal.
Each option has its own role, funding structure and rules. The pages below explain how each one works.
Wellness Spending Account
Provide employer-funded reimbursement for eligible wellness expenses, with tax treatment that differs from an HSA.
Explore Wellness Spending AccountsCost Plus
Reimburse eligible health and dental expenses as they occur, subject to plan terms and administration fees.
Explore Cost PlusCombine options with a clear purpose
When an expense is eligible under more than one arrangement, establish the order of reimbursement and the documentation each administrator requires. Employees should know where to submit a claim and how to claim any eligible remainder.
Discuss plan designChoosing an Approach
Define the goal before choosing the approach.
The choice depends on the expenses you want to support, how you want to fund reimbursements and the tax treatment that applies. Comparing those factors can help narrow the options before reviewing individual providers.
01
Define the need or objective
Identify the expenses employees are paying themselves and determine which are the priority for additional support.
02
Assess how each option works
Use realistic expense examples to assess what each arrangement would deliver for the same budget.
03
Fit the option into the broader plan
Review what employees already have available and identify where the proposed option would add something useful.
How We Help
From selection to a working program.
Once an option has been selected, confirm the program rules, administrative responsibilities and information employees will need before it begins.
Confirm who is eligible
Document the employee classes covered, any waiting period and whether spouses or dependants are included.
Establish provider responsibilities
Confirm which tasks the administrator will handle and which remain with the employer, including reporting and employee inquiries.
Set the plan parameters
Document allocations or reimbursement limits, claim deadlines and any applicable carry-forward provisions.
Review the option as needs change
Use employee feedback and aggregate usage information to identify what is working and where adjustments may be needed.
Common Questions
Compare the key differences
The right approach depends on the employer’s goals, overall plan design and the applicable tax and administrative requirements.
What is the difference between an HSA and a WSA?
A Health Spending Account is used to reimburse eligible medical and dental expenses on a tax-effective basis, subject to applicable rules. A Wellness Spending Account can cover a wider range of employer-defined wellness expenses, although reimbursements are generally taxable to employees. Employers may offer one or both, depending on the role each is intended to play in the benefits program.
What is the difference between an HSA and Cost Plus?
An HSA gives eligible employees a defined amount they can use for qualifying medical and dental expenses. Cost Plus reimburses eligible expenses as they occur under an employer-established arrangement rather than through a set employee account balance. The better fit depends on the desired level of employee choice, cost control and administration.
Can flexible options be added to an existing insured plan?
Yes. Flexible options can be added to an existing insured plan to address coverage gaps, broaden employee choice or provide a separate wellness benefit. The design should make sure each component has a distinct role and avoid unnecessary duplication.
Can eligibility or funding differ between employee groups?
Not always. Eligibility and funding can vary between clearly defined employee groups, subject to the applicable plan rules and provider requirements. Any differences should be applied consistently and documented clearly.
How do we choose the right flexible option for our organization?
The right choice depends on the expenses you want to cover, the level of employee choice you want to provide, how you want to manage employer costs and how the option should fit with existing benefits. Reviewing those factors can help narrow the options.
Looking for more flexibility in your benefits plan?
We can help compare the available options and determine how each could fit with your current or proposed benefits plan.