Enhance plan member wellness with a Personal Spending Account

Enhance plan member wellness with a Personal Spending Account

Personal Spending Accounts (PSAs) are a new way to add wellness options to your group benefits plan. Sometimes referred to as wellness accounts, PSAs cover a wide range of wellness-related expenses and aim to cover expenses that enhance your life and lifestyle. New gym shoes, yoga classes or annual gym memberships can all be covered with a PSA.

Who has access to these accounts?

  • Plan sponsors can choose coverage for plan members only, or for plan members and their dependents. Note: The definition of eligible dependent can either match the policy definition or match the expanded CRA definition.

Overview of coverage

  • Annual per member allocation of $100 - $10,000 depending on the plan.
  • There is one mandatory area of coverage, Health & Fitness, and nine optional expense areas for plan sponsors to choose from.
  • Claims are considered a taxable benefit to the plan member in the year they were reimbursed.

What makes it different

A PSA is different than a Health Care Spending Account because a PSA reimburses your plan member for expenses other than those deemed an eligible medical expense by Canada Revenue Agency. A PSA offers the flexibility to cover wellness options that work best for your plan members and their dependents.

For more information on PSAs, contact your Group Benefits Advisor.