Overview
It’s natural to see your Health Spending Account balance and assume those funds can be withdrawn as cash.
However, Health Spending Accounts (HSAs) are designed to reimburse eligible health and dental expenses, not provide access to cash.
Let’s take a look at why.
The details
The rules around HSAs
HSA contributions are tax-free.
That tax-free status comes with rules set by the Canada Revenue Agency (CRA). Those rules mean HSA funds can only be used to reimburse eligible medical expenses, including eligible health and dental expenses.
This isn't just our policy. The CRA describes reimbursement of eligible medical expenses as the purpose of Employee Life and Health Trusts (like our HSA Classic) and Private Health Services Plans, including Health Spending Accounts (like our HSA Rollback and HSA Rollover).
If HSA funds could simply be withdrawn as cash, they wouldn’t qualify for the same tax benefit.
What happens to unused funds?
What happens to unused funds depends on the type of HSA included in your Plan.
Some HSA features allow funds to remain available until they're exhausted, while others reset or roll over funds at the end of the benefit period.
If you leave your organization or are no longer eligible for benefits, your HSA feature type will also determine what happens to any remaining funds. Typically, you’ll have a grace period after you’re deactivated from the Plan to submit claims for any expenses you incurred in the benefit period.
If you’re not sure what kind of HSA you have, Finding your Plan details will show you where to locate this information in your Member Centre.
Anything else?
Remember, an HSA isn't a savings account or a cash benefit. It's designed to reimburse eligible health and dental expenses, which is why HSA funds can't be withdrawn as cash.
Still have questions? Reach out to our Customer Experience team. They're always happy to help.