Topic
Health spending accounts
Articles and answers about health spending accounts.
Articles about health spending accounts
- Health spending accounts5 minute readPrivate MRI in Canada: wait times, insurance gaps, and how an HSA can help you get answers soonerFacing months of waiting for an MRI? Learn why private scans are usually not covered by insurance in Canada and how a health spending account could help you get answers sooner.
- Health spending accounts5 minute readHealth spending accounts: should your HSA be separate from your group benefits plan?When it makes sense to keep a health spending account with your group benefits plan, and when to set it up separately.
- Health spending accounts8 minute readHealth spending accounts for diabetes in CanadaHealth spending accounts (HSAs) can cover insulin, CGMs, and diabetes costs in Canada. Learn how incorporated business owners can save tax using an HSA.
- Health spending accounts8 minute readCovering fertility treatment costs with a health spending account (HSA) in CanadaAn HSA lets incorporated Canadian business owners cover costly fertility treatments using pre-tax corporate dollars, turning major personal medical expenses into efficient, tax-free reimbursements.
- Health spending accounts6 minute readHow Canadians use health spending accounts to access medical treatment soonerHealth spending accounts give business owners and self-employed Canadians a practical way to access medical treatment sooner, including care outside the country, while using pre-tax corporate dollars to reduce costs.
- Health spending accounts9 minute readLaser eye surgery cost in Canada: the complete guideA guide to laser eye surgery costs across Canada, comparing LASIK, PRK, SMILE, and RLE, with practical insights on how Canadian business owners can use a health spending account (HSA) to pay for surgery with pre-tax dollars.
- Health spending accounts5 minute readIntroducing flexible spending accounts: a tailored employee benefits solution for your businessHow a flexible spending account lets employees split an employer-funded amount between health and lifestyle expenses.
- Health spending accounts7 minute readGuide to health spending accounts (HSA) for startup businesses in CanadaHealth spending accounts (HSAs) are a great option for startup businesses looking to attract and retain talent while managing costs.
- Health spending accounts6 minute readUnderstanding the medical expense tax credit (METC) in CanadaWhat is the medical expense tax credit (METC) and how does it compare to a health spending account (HSA)?
- Health spending accounts3 minute readHealth spending account (HSA) employee classifications and contribution limitsHow to set different HSA amounts for different classes of employees, and the rules for defining those classes.
- Health spending accounts10 minute readBeginner’s guide to health spending accounts in Canada: for employersDiscover the benefits of health spending accounts (HSAs) for Canadian businesses: a flexible and tax-efficient way to manage health and dental expenses, enhancing benefits packages and employee satisfaction.
- Health spending accounts3 minute readUnderstanding health spending account rollover rules in CanadaWhat are HSA rollover rules and how do they work?
- Health spending accounts9 minute readBeginner’s guide to health spending accounts in Canada: for incorporated business ownersLearn how Canadian incorporated business owners who work in their business can use a health spending account (HSA) to have their corporation pay eligible health and dental expenses as tax-deductible business costs.
- Health spending accounts8 minute readHealth spending account (HSA) guide: eligible expensesWhat types of expenses are eligible to be claimed and reimbursed using a health spending account (HSA)?
- Health spending accounts11 minute readBenefit options for Canadian business owners: health spending accounts (HSA) vs. traditional employee group benefit plansHealth spending accounts (HSAs) versus traditional employee group benefit plans. How do they compare, and which solution is most appropriate for your business?
- Lifestyle spending accounts5 minute readThe comprehensive guide to lifestyle spending accounts (LSAs) in CanadaHow a lifestyle spending account works, what it can cover, and how it’s taxed for your employees.
Questions about health spending accounts
What expenses can a health spending account (HSA) reimburse?
The same expenses that qualify for the medical expense tax credit, as set by the Canada Revenue Agency, such as prescriptions, dental and vision care, and treatment from licensed practitioners. Your plan’s own rules also apply.
How does a health spending account work for a business owner or employer?
You set an annual amount for each person, which should be reasonable for their role. When you or an employee has an eligible expense, the claim goes to the plan administrator with the receipt. Once it’s approved, the person is reimbursed tax-free, and your business is billed the claim plus an administration fee and any applicable provincial taxes, as a deductible business expense. An HSA works through an incorporated business: sole proprietors fall under different tax rules, with conditions, so speak with your accountant.
What happens if HSA funds are not used?
It depends on the carry-forward option you choose when the plan is set up: no carry forward, where unused credits are forfeited; a credit carry forward, where unused credits move to the next year; or an expense carry forward, where this year’s expenses can be claimed next year. Either kind of carry forward is limited to one year.
Who can be included in a health spending account plan?
Owners, employees and their eligible dependants, in an incorporated business. Each person’s amount should be reasonable for their role, and amounts can differ by employee class, such as management and staff. Sole proprietors fall under different tax rules, with conditions, so speak with your accountant; we set up HSAs for incorporated businesses.
How is an HSA different from traditional group benefits or a lifestyle spending account?
A traditional group plan is insurance: you pay premiums for set coverage, whether or not it’s used. An HSA reimburses eligible health and dental costs up to the amount you set, and you pay only for the claims that are made. A lifestyle spending account covers lifestyle and wellness costs in the categories you choose, and unlike an HSA, its reimbursements are taxable to the employee. Many employers offer an LSA alongside an HSA or a group plan, rather than on its own.
How do I choose an HSA provider?
Providers differ in how they check claims: some spot-check them, some don’t check them, and some review every one. We prefer providers that review every claim against the Canada Revenue Agency’s rules, which helps protect the plan’s tax treatment. We’ll also walk you through each provider’s fees, either a percentage of claims or a flat annual fee.
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