HSA or WSA? What is the difference, should you choose one over the other, both good questions but in the end why choose at all. HSA or Health Spending Account is a 100% tax-free benefit for both employers and employees that can be used to pay for any health-related medical expense. Typical expenses in this category include; prescriptions, dental, or chiropractors to name but a few. WSA or Wellness Spending Account is a taxable benefit that allows employees to spend money on gym memberships or yoga classes and other types of wellness items. Employees enjoy the benefits of both types of accounts that help promote overall health and wellness.
More and more employers are offering Health Spending Accounts and Wellness Spending Accounts each year but they don’t always offer both. Offering an employee a health or wellness account the employer needs to decide how much money they are going to put into each account and allocating those funds is done when the account is set up. This is done to follow Canada Revenue Agency guidelines that state that funds cannot move from a Health Spending Account to a Wellness Spending Account or vice-versa.
Aya is not a traditional health benefits company, Aya is a technology company and has built a financial ledger system that is the same as what a bank would use. When using Aya for your Health and Wellness Spending Accounts you do not have to differentiate between the two accounts. You can add a sum of money to your Aya account and spend it on either Health or Wellness or both. Aya’s platform will allocate the funds to the appropriate Health or Wellness Account once you submit a claim and it has been successfully adjudicated. Aya’s robust financial platform allows employees to enjoy the benefits of both types of accounts without having to allocate funds upfront. When it comes to Health Spending Accounts or Wellness Spending Accounts with Aya, the option is clear, why not both!