A Health Spending Account (HSA) is a plan that follows the rules and guidelines of a medical insurance and tax planning plan, called a Private Health Services Plan (PHSP) which is also known as an HSA. It is available to incorporated Canadian businesses. PHSPs were first introduced in 1988 by the Canada Revenue Agency (CRA) as an alternative to traditional insurance plans for Canada’s small business community. The HSA allows businesses to reimburse qualifying medical, dental and wellness expenses to employees and business owners. Medical expenses reimbursed through the HSA are a 100% tax free benefit to the employee as well as 100% tax deductible to the business.
What can be claimed?
There are a number eligible expenses under the CustomCare Program including:
• All prescription drugs
• All dental - includes orthodontics and braces
• All optical - includes laser eye surgery
• Paramedical
• Massage therapy
• Physiotherapy
• Chiropractic
• Naturopathic visits and in office treatments
• Premiums – health and dental premiums for spousal group plans, individual travel insurance
• MRIs
• CPAP machines for sleep apnea
• Diabetic supplies
• Fertility treatments
We work with a number of providers to help you set up a Health Spending Account. There are significant benefits to all persons assoicated with the corporation for using the HSA. We can show you how to take advantage of these benefits.
Here are a couple of documents to give you additional details to see if the HSA would benefit you:
