If you are a small business owner or an employee in Canada, we want to let you in a secret. A Health Savings Account (HSA) can help you save on medical expenses. However, choosing the right HSA provider in Canada can be a difficult decision.
Not many are aware or have prior experience with the plans, so they don’t know what to expect from their HSA. Are you one of them?
With our detailed guide here, we wish to make choosing the right HSA provider for employees in Canada a simple and easy decision. So let’s get started.
What Is HSA?
Call it what you may, a Health Saving Account or a Health Spending Account (HSA), or a Health Care Spending Account (HCSA), or Private Health Services Plan (PHSP), all these names usually mean the same thing.
A cost-effective way to provide health services to employees that are tax-deductible to the business and received tax-free by the employees.
Who Can Use A Health Saving Account?
You are eligible for a HSA if you:
- Own an incorporated business
- Pay medical bills
- Pay income tax
- Receive T4 income
How To Choose The Right HSA Provider?
You’d be fairly surprised as you begin comparing HSA providers. HSAs are not your traditional health insurance plans or other types of investment accounts so you must be informed to ensure you make the right choice.
1 . Fees
Get an innovative HSA with no hidden fees.
Be sure you understand all the fees that are associated with your HSA account including:
- Setup
- Annual
- Monthly maintenance
- Account-use
- Debit card replacement
- Paper statement
- Investment
Every provider is different and so would be their ideologies related to the transparency around fees. Partner with a provider who comes with no gimmicks, surprises, or hidden fees.
2 . Security Deposit
Knowing your money is safe is important.
Look for HSA providers in Canada that are FDIC-insured or NCUA-insured so you have the financial security and the peace of mind you deserve.
3 . Growth Opportunities
Look for the interest rate and investment options.
- If your HSA provider offers investment options, do look for:
- The investment menu design
- Quality and performance of the investment
- Fees and details associated with investing your HSA fund
How Can An Employee Make The Most Of HSA Investment Opportunity?
As an employee in an HSA-eligible/high-deductible health insurance plan, you can:
- Save and invest your HSA assets with any provider you choose
- It can provide a greater investment opportunity if your employer only offers cash-based or low-return investments from their current HSA provider
- You can expand the range of available investments by decoupling your HSA provider from your high-deductible health plan provider
HSAs Are More Than A Standard Deposit Account
It’s always advisable to go beyond the basic queries and understand the terms and conditions because it is much more than the fees or interest rates. You want to find an HSA provider that gives you the tools and resources to maximize the benefits.
Look for a proactive feature-rich HSA plan that not only gets you engaged in your healthcare saving and spending but also enriches your financial well-being.
Disclaimer: The information provided in this blog or any linked material is not intended and should not be considered a substitute for medical advice, diagnosis, or treatment. For holistic health advice and consultation, visit My Well Self
