Health Spending Accounts (HSAs) in Canadian companies are valuable tools for:
- Employee wellness
- Flexibility in covering medical expenses
- Tax benefits
However, many Canadian companies experience HSA waste or underutilization, diminishing their potential benefits.
Common Causes of HSA Waste
1. Lack of Awareness
Employees may not know how HSAs work, what expenses are covered, or even if they have access to these benefits.
2. Inflexible Spending Options
Restrictive HSA plans may prevent employees from claiming relevant expenses, leading to unused funds.
3. Procrastination
Employees may forget to submit claims or delay using their HSA funds, causing them to lose money in annual plans.
4. Poor Communication on Deadlines
Lack of clarity on submission deadlines can result in employees missing out on their benefits.
5. Complicated Claim Processes
A time-consuming or complex submission process can discourage employees from using their HSAs.
How HR Can Minimize HSA Waste
- Educate employees on HSA benefits through regular communication.
- Simplify the claim process.
- Send reminders about deadlines.
- Promote HSAs for wellness programs and preventive care.
- Allow fund rollovers or introduce incentives for active use.
By improving education, communication, and ease of use, companies can maximize the value of HSAs for employees and the business.
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.
