Health care spending accounts are gaining in popularity and now Kingston, Ont.-based Empire Life Insurance Co. is adding an HCSA to its group products.
According to recent sanofi aventis Healthcare Surveys, the percentage of employees who have an HCSA is rising — from 18% in 2009, to 29% in 2010, to 32% in 2011.
Empire Life says the HSCA is a flexible product that can help employers manage costs, enhance a plan and offer employees more choice. The company has offered an incidental health benefit, and is now expanding its offering to include a traditional HCSA.
“A health care spending account is ideal for today’s more diverse workforce,” says Janet Jackson, vice president, group marketing at Empire Life. “People at different ages and stages in their lives value different benefits. With the HCSA, employees have more choice in how they use their annual allocation-and more power when it comes to protecting their health and the health of their family.”
At the same time, the HSCA can help business owners manage escalating health care costs. Business owners decide how much to allocate to employees and know that amount is fixed, unlike insured benefits where the premiums may rise every year in line with rising costs and utilization.
Empire Life offers two standard HSCA options: a plan that allows employees to carry forward unused credits in their account, and a plan geared towards small businesses that requires employees to use the benefit credits within a calendar or benefit year.
“Our HCSA is available on our BeneFit, BeneFitPlus and 20Plus suites, which means that, assuming the business is incorporated, it’s available to groups with two or more insured lives,” says Jackson. “This gives us a competitive advantage over carriers that have a higher number of minimum lives.”