HSA coverage is broader and more flexible than a traditional benefits Plan. That means there's not as many restrictions (yay!).
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 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 fantastic great tax benefits with an HSA. A Plan Sponsor company can deduct the contributions and fees related to the HSA as a business expense. For Plan Members, the contributions made to the Health Spending Account from Plan Sponsor is tax free to the Member.
If HSA Plan Members 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.
Our claim processing services ensure that all submitted expenses meet CRA eligibility criteria, preventing any possible future tax implications.
Keep in mind, we're not tax professionals, so if you have any tax related questions, definitely get in touch with a tax professional!