This guide will walk you through eligibility to tax benefits to maintaining your account and everything in between you need to know about HSAs in Canada.
What Is A Health Spending Account?
A health spending account is a health benefits plan designed to help Canadians manage their healthcare expenses using pre-tax dollars. HSAs are unlike your traditional health insurance plans as they offer benefits that include:
- Flexibility in how funds can be utilized
- Cover a wide range of healthcare services
- Funds can be carried forward to the next year
Who Is Eligible For An HSA?
HSAs in Canada are mostly offered by businesses to their employees. You can check with your business owner or your tax advisor whether or not an HSA is the right plan for you.
What Expenses Are Covered By HSA?
HSAs are becoming increasingly popular in Canada because of their flexibility. Your HSA can cover a whole range of eligible medical and wellness expenses that may not be covered by your traditional health insurance plan. You can keep track of your expenses by creating a checklist of your expenses.
| HEALTH CATEGORY | ELIGIBLE EXPENSES |
| Medical | Doctor visits, surgeries, diagnostics |
| Dental | Routine checkups, braces, surgery |
| Vision | Prescription eyeglasses, contacts, laser surgery |
| Mental Health | Psychological assessment, therapy, counseling |
| Alternative Treatment | Chiropractic, acupuncture, naturopathy |
| Prescription Medication | Fully-covered |
| Wellness | Gym membership, fitness equipment, weight-loss program |
How HSAs Work In Canada?
HSAs in Canada work differently for employees and employers.
For Employers:
- Allocate funds for employees.
- Reduce taxable income by the amount contributed.
- Provide healthcare coverage without payroll taxes.
For Employees:
- Submit claims for reimbursement.
- Enjoy tax-free reimbursements.
- Keep track of your HSA balance and expenses.
Get Started With Your HSA Today
HSAs in Canada offer business owners and employees a smart and flexible way to manage healthcare expenses.
- For Employers: Research HSA providers, decide on a contribution limit, and ensure compliance.
- For Employees: Check for HSA plans with your employer, keep track of receipts, and monitor your account balance.
In summary, Health Spending Accounts provide a practical solution for managing healthcare expenses in Canada. They empower both employers and employees to take control of their health spending while enjoying tax benefits. Explore HSAs today and make the most of your healthcare budget!
Disclaimer: The information provided in this blog or in any linked material is not intended and should not be considered a substitute for medical advice, diagnosis, or treatment. For holistic health advice and consultation, visit My Well Self
