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Employer contribution costs can be pre-determined and fixed. |
| Much broader basic health and dental coverage available under a "Medical Dental Spending Account", based on the definition of eligible claims under a "Private Health Services Plan" per Federal Income Tax Act, Section 118.2(1) and IT519R2 (limited only by funds allocated to MDSA)
For example:
Laser eye surgery
Major restorative dentistry
Orthodontic services
Cosmetic surgery
Cosmetic dentistry
(No deductible, no co-insurance – limited only by employer contribution amount) |
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Future employer MDSA costs not impacted by health and dental claims experience. |
| Under MDSA, coverage can be provided to extended family members residing in employee's home and for whom the employee claims a tax deduction. |
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Internal equity - all employees are treated equally in terms of employer contributions regardless of marital status. |
| All employees receive same employer contribution:
Employees with family members, and those with high
medical/dental expenses, are no longer subsidized by other employees. |
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No employer involvement in health and dental claims. |
| Direct submission of health and dental claims ensures confidentiality of health information |
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Employees are required to become directly involved in the management of their health and dental expenses and the
timing of expenditures. |
| Unused MDSA balances can be carried forward to next Plan Year and will be used first. At the end of the second year following any unused balances forfeited to employer |
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The employer has flexibility to vary contributions by class of employees. |
| Employer contributions allocated to MDSA do not constitute a taxable benefit, and all claims
paid are tax-free benefits (except for Quebec residents). |
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Cost sharing is normally arranged such that employees pay the cost of the EHC + Dental Program.
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Employees purchase the Optional Supplementary EHC Program via payroll deduction to cover health expenses other than those covered by the MDSA, e.g. Out-of-Country; semi-private hospital; prescription drugs; etc. |
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The Employer need no longer be concerned with plan design and can better meet specific needs of each employee. |
| The Employee controls allocation of funds within the MDSA to meet personal needs each year. |
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