HSA coverage is broader and more flexible than a traditional benefits Plan.
That means there's not as many restrictions (yay!).
So, a traditional plan generally has a limit on expenses - for example, only 80% of Dental Services would be reimbursed, up to a maximum dollar amount in a set time period, or only $50.00 is reimbursable per Massage visit.
However, with an HSA, there's no set percentage of coverage or dollar limit for certain services. There's also no deductibles that need to be reached before eligible expenses are reimbursed!
The only limit to the amount reimbursable for eligible expenses is the amount of funds available in the HSA.
An HSA is also an awesome complement to existing coverage to reduce out of pocket costs for medical expenses!
If someone is also partially covered by another Plan, they can claim amounts not reimbursed by that Plan through their HSA - so, they're getting full reimbursement of eligible expenses!
There's also great tax benefits with an HSA. Personally, every dollar is tax free to the Member. As a corporation, a company can deduct the contributions and fees related to the HSA as a business expense.
If a person were to pay for health expenses outside of an HSA, it means they'd have to file for such expenses on their tax return. Using the CRA's Medical Expense Tax Credit (METC) requires that a family reaches a certain (rather high!) healthcare expense spending threshold before the credit can be used.
Additionally, we ensure that all submitted expenses meet CRA eligibility criteria, preventing any possible future tax implications.
Keep in mind, we're not tax professionals, and therefore can't give tax advice, so if you have any tax related questions, definitely get in touch with a tax professional!