Flexible Health Spending Accounts

Many small business owners reduce employee benefit cost with a health care spending account that makes their employee benefits plan flexible and affordable.  They can choose to provide defined contribution health spending accounts for their staff to supplement or replace health insurance.  This gives employees flexibility to design a customized benefit plan and the employer certainty over costs.

Employee Satisfaction:

  • Health benefits are non-taxable compensation to employees.
  • Employees empowered to make their own personal healthcare purchase decisions by purchasing any combination of health products and services (drugs, dental, vision care, insurance, etc.)
  • Employee claims are fully paid, as permitted by law and to the extent of their health spending account balance.

Employer Satisfaction:

  • The employer allocates the benefits budget considering total compensation.
  • Future costs are at the discretion of the employer since the contribution schedule may change at the beginning of every calendar year.
  • Employer costs are limited to their contributions, an administration fee (typically 10%), plus provincial and federal taxes (typically 10.5%).
  • Any amounts that employees do not use within two calendar years are refunded to the employer.


Introducing a health spending account can be rewarding for the organization and staff.  This site is devoted to providing all the information you need to design and implement a health spending account but please let me know if you would like assistance.