A HCSA is a tax-deductible expense for your company and provides plan members with tax-free coverage of expenses that are not covered under their provincial insurance plan or other benefit plan sponsored by their employer. They can be set up as a stand alone plan, however they are generally added to a core plan to increase flexibility. HCSA are simple to set up and the employer chooses the annual maximum.  HCSA gives employees flexibility to direct dollars to expenses that are relevant to them.