Health care spending accounts, part 1: What are they?

Finding the right health benefits plan design for smaller businesses can be a challenge for advisors. First, advisors need to take into account that these organizations do not necessarily have the same resources or economies of scale to work with as their larger clients.  Second, despite their size, smaller clients still look to their advisors for the same sort of benefits solutions as their larger counterparts.

What this means is that smaller employers still want a benefits solution that is flexible enough to meet the health needs of their staff, but also provides some form of cost predictability without ‘breaking the bank’.

One solution advisors may want to consider discussing with their smaller clients is the addition of a flexible and predictable Health Care Spending Account (HCSA). An HCSA can be easily added to any benefits plan design, but can be especially useful for providing smaller groups with the ability to offer the type of coverage that their employees are looking for.