Tailoring benefits for the modern workforce: The power of health and personal spending accounts
In today’s rapidly evolving workplace, employees’ needs are changing at an unprecedented pace. A one-size-fits-all plan design is no longer meaningful enough to many. With shifts in workplace demographics and rapid technological innovation, employees are seeking benefits programs that are flexible and aligned with their individual lifestyles and personal needs.
Incorporating flexible wellness benefits into a benefits program offers a strategic advantage. These accounts not only meet the diverse needs of a workforce but also align with broader organizational goals. By promoting health and personal development, wellness benefits, such as spending accounts, contribute to a more engaged, productive and satisfied workforce.
What is a Health Spending Account (HSA)?
A Health Spending Account (HSA) is a versatile and tax-effective way for employers to offer additional health benefits to their employees. An HSA allows employees to allocate pre-tax dollars to cover a wide range of eligible medical expenses that might not be fully covered under their standard health insurance plans. These expenses include prescription medications and dental care, to vision services and physiotherapy.
One key aspect of HSAs is that the eligible expenses must be recognized as medical expenses by the Canadian Revenue Agency (CRA). This ensures that the funds are used for legitimate health-related purposes, providing employees with a compliant and tax-advantaged way to manage their healthcare costs.
Commonly claimed HSA expenses:
- Prescription drugs
- Massages (from a licensed professional)
- Prescription glasses and glasses
- Dental costs
An HSA empowers employees to take control of their healthcare spending, providing them with the flexibility to choose the health services that best meet their needs. For example, an employee who doesn’t require extensive dental work but needs regular physiotherapy sessions can allocate their HSA funds accordingly. This customization ensures that employees receive maximum value from their benefits, leading to increased satisfaction and engagement.
What is a Personal Wellness Account (PWA)?
A Personal Wellness Account (PWA) goes beyond traditional health-related expenses, offering employees a broader spectrum of benefits to enhance their overall well-being. PWAs are designed to cover a variety of personal expenses that contribute to an employee’s physical, mental, and financial wellness. These can include gym memberships, fitness equipment, childcare services, education courses, financial planning services and even ergonomic office furniture for remote workers.
At Saskatchewan Blue Cross, employers can choose from the following PWA spending categories (available in any combination):
- Health and Wellness Support
- Fitness and Sports Activities and Equipment
- Insurance Premiums
- Family Care
- Other Medical
- Supplements and Meal Replacement
- Green Living
- General Lifestyle
- Alternative Health Treatments
- Recreation and Leisure
- Personal Development
- Productivity
The key advantage of a PWA is its flexibility. By allowing employees to decide how to use their PWA funds, employers can acknowledge and respect the diverse needs and preferences of their workforce. For instance, one employee might use their PWA to offset childcare expenses, while another might prefer to allocate the funds towards a fitness program. This flexibility not only supports employees in leading healthier, more balanced lives but also promotes a culture of well-being and continuous improvement within the organization.
In conclusion, as employee needs continue to evolve, embracing innovative benefits solutions like Health Spending Accounts and Personal Spending Accounts is essential. These tools provide the flexibility and personalization that modern employees crave, while simultaneously helping organizations achieve their strategic objectives. Investing in the well-being and satisfaction of your employees is not just a perk — it’s a crucial component of a thriving, forward-thinking workplace.