Healthcare Spending Account (HCSA)

Alternatively referred to as simply Health Spending Account (HSA).

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An HSA is arrangement whereby a plan sponsor (i.e. an employer) can offer a specific dollar amount to plan members (i.e. employees) to be used on an annual basis to help them pay for eligible health and dental expenses in the manner of their choosing.

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Usually an HSA is offered to employees in addition to insurance benefits.

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HSA costs are tax-deductible to the corporation, and the benefit is tax-free to the employee.