Health Spending Account
HSA is a Private Health Services Plan (PHSP) approved by Canada Revenue Agency (CRA). It is an effective way for businesses to convert health and dental expenses into fully tax deductible expenses. This tax strategy can result in significant savings for small to large business corporations.
Your corporation can write of 100% of ALL qualifying medical and dental expenses and the employee and their family members are personally reimbursed TAX FREE.
Who is Eligible?
If you are incorporated (whether 1 employee or 1000) and receive an income from your business, you are eligible. It makes financial sense for any business owner with an incorporated company to have a Health Spending Account.
An HSA plan can be used as a stand-alone health plan, or can be used in conjunction with an existing traditional health plan. Traditional health plans typically offer restricted health benefits and dollar maximums. With a HSA plan these unpaid balances can be processed through your HSA account.
As the business owner, you have the choice to set only yourself and your family members up; or you can offer a plan to your employees and their family members with limited benefits and amounts. You decide which employees to include and the amount of benefits they are covered for.
How Does myHSA Plan Work?
|1. The business owner or Employee pays the health or dental expense as usual, the submits it through your online myHSA account.
2. The claim amount, plus 5% administration fee, plus GST gets processed through the business. This now becomes a tax deductible business expense.
3. The full amount of the original claim is then reimbursed to the Employee's personal bank account.
What are the Costs?
- All you pay is a nominal one-time set up fee of $100.00
- There are no annual or monthly premiums to pay
- After your account is set up you only pay 5% Administration Fee plus GST on the amount you submit.
What Makes myHSA Better?
Your Plan Administrator can keep track in real-time, the employee additions/deletions, claim history including pending, paid and past claims (not employee claim details). The plan Administrator is not responsible for making employee claims or approving claims. Each employee has their own secure login which they use to process and track their own claims.
A 24/7 online chat is available for any questions.
Our system is 100% online – it eliminates the use paper. All claims are submitted online or via the myHSA app using your iPad or smart phone. The app allows you to add a picture of the receipt and upload it to our adjudication department. (You will need keep the receipts on file for a minimum of one year for audit purposes). The claim sits in ‘pending’ until it gets finalapproval. After is gets approved, the amount is deposited directly into the employee’s bank account. This entire process takes 1-3 business days.
What Expenses are Covered?
The employee can claim any medical expense that is allowable under the Income Tax Act. This includes Dental, Orthodontics, Vision Care, Laser Eye Surgery, Prescription Drugs, Diabetes Treatment, Fertility Treatment, Dietician, Physiotherapy, Chiropractor, Massage, plus many more.