A Healthcare Spending Account in Canada or HSA is an alternative to traditional health insurance that has been widely adopted by Canada's small business community.
Here's 10 things you might not know about one of Canada's best kept tax secrets.
1. Your business pays for your medical expenses
Instead of paying for your medical expenses personally, use a Healthcare Spending Account and have your business pay for your medical bills. You can save upwards of 30% on the cost your medical expenses when you pay for them through your small business.
2. OrthodonticsExpenses under a Healthcare Spending Account are not restricted by the type of expense, only on the dollar amount. Orthodontics, basic dental, and extended dental are among the wide range of eligible expenses with a Healthcare Spending Account.
3. Laser eye surgery
Another bonus, laser eye surgery, contact lenses, eyeglasses, frames, eye tests and other vision care services are eligible.
4. Learning Disabilities
The cost associated with your child's learning disability can also be submitted as an eligible expense. Counseling, prescriptions, and other costs associated to autism, ADHD, dyslexia and other disabilities are eligible. If your child requires special attention that is medically related, there is a good chance the cost is eligible.
5. No expensive monthly premiums
A HSA typically has a low annual fee or a flat rate administration fee based on the amount of your usage. Conversely, it's not uncommon to pay several hundred dollars per month for a traditional family health and dental insurance plan - often for services and items that you shouldn't being insuring.
6. No deductibles or co-payments
Expect freedom and flexibility - a Healthcare Spending Account in Canada has no deductibles, no restrictions of co-insurance, and there are no limits to the number of visits and treatments.
7. No waiting period
Continuing with the idea of freedom, a HSA is effective immediately and grants you access to the benefits with no waiting period. Often traditional insurance plans will only grant access to certain benefits after you have been a plan member for a specific amount of time.
8. No pre-existing conditions
Isn't it frustrating when you cannot find help for your medical costs because you are blacklisted due to a pre-existing condition? These are the folks that need the most help. A HSA will not discriminate based on a pre-existing condition.
9. 24 Hour Claims
The timing of cash flow is important to a small business. A modern HSA with complete online claims will return the money from your claim in a very short period of time.
10. Complimentary Medical Travel, Catastrophic Drug , and Emergency Insurance
Small business owners often leave their home province for work and personal trips. The Olympia HSA includes additional medical insurance plans to protect you and your dependants for unforseen accidents.
Are you a small business owner in Canada? Discover more ways a Health Spending Account can bring value and benefit to your small business and family.