Health spending accounts (HSAs) contain many more eligible expense items than traditional benefit plans. HSAs are a 100% tax-free benefit for both corporations and employees, it is like having a bank that employees can use for all of their medical, dental, vision and so much more.
The Canada Revenue Agency lists all the different types of services and products that can be expensed as part of an HSA. If you have a health spending account it is always good to check the Canada Revenue Agency website to determine if your expense is eligible.
All of the typical products and services covered under traditional group benefit plans are also covered with a health spending account. HSAs can also be used to cover expenses when you have maxed out traditional benefit plan expenses. For example if your plan covers $500 in chiropractic services, and additional expenses over and above the $500 can be covered by your HSA. Some of these common items include
There are many other less common items and services that are eligible expenses for health spending accounts. Below are some of the more obscure items that can be expensed.
Private Health Insurance Premiums
Premiums paid to a non-government medical or hospital care plan can be expensed. Examples would include Blue Cross, Manulife Flexcare and Sun Life Affinity.
You can expense $1,000 or 50% of the amount paid for an air conditioner, whichever is less. In order for the expense to be eligible the person must have a severe chronic ailment, disease, or disorder and a prescription is required for it to be considered eligible.
A prescription is required and the amount paid for the wig can be expensed as long as the person has suffered abnormal hair loss because of a disease, accident or medical treatment.
Health spending accounts are a more robust and flexible option for all of your healthcare related expenses.