Project Description

WHAT YOU NEED TO KNOW ABOUT HEALTH SPENDING ACCOUNTS

If your benefits plan includes a Health Spending Account (HSA), you can choose where your benefits can be best used. It’s like a bank account with a set spending limit for healthcare expenses.

HOW IT WORKS

1. Your benefits plan includes a fixed amount of money available to you and your family for eligible healthcare expenses. Consult your benefits booklet, claims app or website, or Plan Administrator for the amount.

2. When you incur an eligible healthcare expense you can claim it as a ‘withdrawal” from your Health Spending Account. As long as a balance sufficient to cover a claim remains in the account, you are reimbursed for that claim.

3. As you use your Health Spending Account through the year, your “balance” will decline – until it is “replenished” on January 1

4. Depending upon how your benefits plan is set up, you may be able to use your entire balance at the beginning of the year – or you may have to accumulate funds each month through the year. Consult your Plan Administrator to determine which plan type you have.

ELIGIBLE HEALTH SPENDING ACCOUNT EXPENSES

Following rules established by the Canada Revenue Agency (CRA), your Health Spending Account can be used to pay for:

  • Extended Health and Dental expenses
  • Vision care expenses
  • Unpaid portions of expenses from regular health and dental plans such as deductibles, co-insurance amounts and amounts which exceed plan maximums.
  • Expenses not covered under any other benefit plan, whether group, provincial or private, like a spouse’s plan.
  • Expenses listed as eligible medical expenses in the Income Tax Act, its regulations and Interpretation Bulletins, subject to change as the Act is amended.

Services must be performed by a licensed medical practitioner. Items must be prescribed by a licensed medical practitioner and dispensed by a licensed medical practitioner or pharmacist. To confirm eligibility, go to www.cra-arc.gc.ca and type “eligible medical expenses” in the search field.

GETTING STARTED WITH YOUR HEALTH SPENDING ACCOUNT

If your plan includes a Health Spending Account, it’s already available for you to use! When you make a claim for an eligible healthcare expense, choose “Health Spending Account” to “withdraw” the funds from your Health Spending Account.

FREQUENTLY ASKED QUESTIONS

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