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Products > Group Benefits > Health & Dental > HSCA & TSA

What is a Health Care Spending Account?

A Health Care Spending Account (HCSA) is a health and dental benefit administration feature that can be part of a traditional or flexible benefits plan. It operates in a similar fashion to a bank account:

  • Manulife opens an account for each plan member with an HCSA;
  • Manulife credits each plan member’s HCSA with the HCSA balance he or she is eligible to receive;  and
  • Plan members use the HCSA balance to pay for eligible health and dental expenses which are not otherwise covered by their group benefits plan.

Plan members submit health and dental expenses against the account until the balance is zero or is no longer available for use.

HCSAs are an effective tool to assist plan sponsors in managing overall plan costs.  With an HCSA a plan sponsor can:

  • limit liability while increasing benefit flexibility;
  • retain benefits at a predetermined level instead of providing additional coverage through their core plan; and
  • help provide employees with greater satisfaction.

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