5 Must Health Spending Account Features


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Learn the key must have features of a customer friendly and top of class Health Spending Account

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5 Must Health Spending Account Features

  1. 1. The Complete Health Spending Account Guide 5 Must Have Features for a Health Spending Account How to Identify the Right Health Spending Account
  2. 2. Optimal Healthcare and “Life“ Benefits Olympia’s All-in-one Benefits Program HEALTH SPENDING ACCOUNTS Optimize your Health Benefits and make Claims online TRAVEL MEDICAL INSURANCE Protect yourself and your family on your next vacation EMERGENCY MEDICAL INSURANCE Prepare for life’s unexpected emergencies SIGN UP NOW VIDEO OVERVIEW Share This Ebook www.olympiahsa.com
  3. 3. The optimal experience for a Health Spending Account is the combination of security with exceptional service. Health Spending Accounts are sold and administered with countless variations. You will find stark differences in the compliance levels and plan design, the administrators, account access, and service levels. The reason for the variety of Health Spending Accounts is the vendors or administrators have all crafted their own unique take on a small set of guidelines from Canada Revenue Agency (CRA).
  4. 4. This abundance of choice in Health Spending Accounts has created a messy and confusing marketplace for the small business owner. Deciding on a suitable Health Spending Account has become difficult with potentially significant personal and corporate tax implications for the buyer. Health Spending Accounts are inextricably linked to CRA. Factoring into your decision for a Health Spending Account should be the administrator’s credibility and the overall compliance of the plan to meet minimum conditions set by CRA. Once you feel secure with the administrator and their plan, you should explore factors such as plan management, plan access, and the overall service experience you will receive. This guide will help you identify the right Health Spending Account for you, your family and your business.
  5. 5. 5 Must Have Features for a Health Spending Account In recent years, the use of Health Spending Accounts has grown in popularity. One overlooked consideration in choosing the right Health Spending Account is the administrator. The relatively low barriers to entry have enticed dozens of companies to set foot into the administration of Health Spending Accounts. 1 This has created a flurry of choice in administrators. Administrator Credibility Share This Ebook www.olympiahsa.com 3
  6. 6. 5 Must Have Features for a Health Spending Account 1 A Health Spending Account can be potentially damaging to you and your business if your armslength administrator lacks credibility. Perform proper due diligence of the administrator by looking into the history and operations of the firm. Some important questions to ask include: • How long have they been in business? An administrator that has less than 5 years experience may warrant some caution. Administrator Credibility • How many customers do they have? Look for an administrator that has a sizeable book of business with at least 20,000 customers. Keep in mind administrators typically only charge a small fee for their services, meaning a significant volume of customers is required to sustain all aspects of operations. Buyers Beware: Not all administrators are created equal. Share This Ebook www.olympiahsa.com 4
  7. 7. 5 Must Have Features for a Health Spending Account 1 Administrator Credibility • How many transactions do they process in a day, week, and year? Try to understand what kind of specialization they have developed. The higher the volume of transactions, the more specialized their knowledge and operations. A reputable firm with 20,000+ customers will process 40,000+ claims a year. • Can you speak to some of their customers? An administrator with credibility will offer real customers for you to contact. These customers should be in your industry and the same size as your business. • What kind of experience do they have in dealing with CRA? Through the natural course of business an administrator will engage in discussions and dealings with CRA. Find out how the administrator addresses outstanding customer claims and circumstances with the government. Share This Ebook www.olympiahsa.com 5
  8. 8. 5 Must Have Features for a Health Spending Account 1 Administrator Credibility • Is the administrator regulated by a governing body? The administration of Health Spending Accounts is an unregulated industry but that does not mean the administrators should go unchecked. Find out if the administrator is regulated by a governing body and if they are accountable for their actions. An example would be an administrator that is a public company and their corresponding accountability to the governing stock exchange and public shareholders. • Is the administrator transparent and audited by a reputable accounting firm? Make sure you know the financial wellbeing of your administrator. You should have reassurance that your $10,000 claim will be reimbursed. Share This Ebook www.olympiahsa.com 6
  9. 9. 5 Must Have Features for a Health Spending Account 2 Compliance with Canada Revenue Agency It’s important to be familiar with the background of a Health Spending Account. By its nature, a Health Spending Account involves corporate and personal taxation. These events are inextricably linked with acceptable accounting principles. A Health Spending Account must be designed and administered in accordance with Canada Revenue Agency CRA guidelines. Here’s a list of the minimum conditions: • EMPLOYER/EMPLOYEE RELATIONSHIP Adated contract must outline and establish this condition. • ELEMENT OF RISK / IN THE NATURE of INSURANCE The Health Spending Account must be in the nature of insurance with a necessary element of risk. A reasonable benefit level of medical expenses must be established for any given year in advance. Share This Ebook www.olympiahsa.com 7
  10. 10. 5 Must Have Features for a Health Spending Account 2 Compliance with Canada Revenue Agency • MEDICAL EXPENSES Expenditures must be performed or prescribed by qualified or registered practitioners and match expenses found in the Medical Expense Tax Credit. • BACKDATING Upon setup of Your Health Spending Account, it cannot be backdated beyond the current month of your enrollment. A wrongful assumption is often made that all medical expenses can be deducted regardless of the year they occurred. The contract must be in place prior to the expense being generated. For example: you cannot setup your Health Spending Account on June 1, 2013 with an effective date of January 1, 2013. A simple analogy is you cannot purchase home insurance the year after your home is destroyed and expect to make a claim for the event. Share This Ebook www.olympiahsa.com 8
  11. 11. 5 Must Have Features for a Health Spending Account Ensure you have convenient online access to your Health Spending Account. A helpful online account management system will have the following features: • • • • • 3 Provide an update on current account status View your claim history Access reports Edit your account details Easy access to customer support with LiveChat Online Account Management Share This Ebook www.olympiahsa.com 9
  12. 12. 5 Must Have Features for a Health Spending Account 4 Service Level A Health Spending Account is only as effective as the accompanying degree of service you receive. Investigate the following: • Claim turnaround time • Employee expertise and experience • Company policy for response time to your inquiries • Multiple channels of access to customer service (email, live chat, toll free phone, Twitter, etc) Share This Ebook www.olympiahsa.com 10
  13. 13. 5 Must Have Features for a Health Spending Account 5 Perhaps one of the most important features for a Health Spending Account is the ability to complete a claim online. The more advanced online claim systems will allow you to enter, submit, pay and be reimbursed for your claim on one digital platform. This key feature will dramatically improve your claim experience by reducing your turnaround time for claims, eliminating your trips to the post office, and removing the use of paper for your transactions. Online Claims Share This Ebook www.olympiahsa.com 11
  14. 14. Conclusion and Additional Resources
  15. 15. We have covered a good deal of information on the must have features of a Health Spending Account. You should now feel comfortable understanding the most important elements surrounding a Health Spending Account. In summary, here are the key takeaways: • Investigate the credibility of the administrator • Verify for compliance • Look for online account management • Pay attention to the service level • Ensure you can make a claim online
  16. 16. Discover the Savings of a Health Spending Account Now that you’re familiar with Health Spending Accounts, try our Savings Calculator and download your custom report. Download Now Share This Ebook www.olympiahsa.com 14