Health spending accounts: A multifaceted, crowd-pleasing health insurance tool

Benefit gives employees more control over costs
By Sarah Twomey
|Canadian HR Reporter|Last Updated: 04/19/2010

HR analysts have been reporting for several years the Canadian workforce is on the verge of a crisis. Baby boomers are reaching retirement, there are fewer skilled workers to replace them and health-care expenses are increasing across all levels. In recent years, health spending accounts (HSAs) have become one solution to help reduce the negative impact of the changing employment landscape.

“HSAs have gained popularity among employers and employees alike, mainly because of their flexibility,” said Françoise Picard, product manager in the research and development department at Desjardins Financial Security’s group insurance division.

“Employers may use them as a leveraging tool when hiring in booming markets or in negotiations for executive positions. Employees feel empowered by the fact that they are in better control of their health benefit expenses.”