The 124 Deductions with a Health Spending Account for Small Business

By: Updated: May 2, 2022

Updated: Feb 2, 2021

Health Spending Accounts for small business are a versatile alternative to traditional health insurance plans. One of the key benefits of the Health Spending Account is the 100% coverage on eligible medical expenses. 

Under a Health Spending Account, you are not restricted to a certain amount and have access to a wide range of eligible expenses without co-payments, deductibles, or premiums.

Take a look at the eligible expenses that you can submit using a Health Spending Account:


Qualified Medical Practitioners

  • Acupuncturist (R.Ac.)
  • Anaesthesiologist
  • Athletic Therapist 
  • Audiologist
  • Chiropodist
  • Chiropractor (DC)
  • Dentist (DH, RDH, DT, RDT, DMD)
  • Denturist (DH,RDH,DT,RDT,DMD)
  • Dermatologist
  • Gynaecologist (Ob.Gyn)
  • Naturopathic Doctor (ND)
  • Neurologist
  • Obstetrician
  • Oculist
  • Ophthalmologist
  • Optician
  • Optometrist (OD)
  • Orthodontist (DH, RDH, DT, RDT, DMD)
  • Orthopaedist
  • Osteopath (DO)
  • Paediatrician
  • Physician (MD)
  • Physiotherapist (B.PhysT, B.ScPhysio, B.Physio, CPTA)
  • Podiatrist (DPM)
  • Practical Nurse (LPN)
  • Psychiatrist (C.Psych)
  • Psychologist (PsyD)
  • Registered Nurse (RN)
  • Counselling Practitioners (RSW, RCC, MFT)
  • Speech Therapist (SLP)
  • Surgeon
  • Therapeutic Massage Therapist (NHPC)
  • X-Ray Technician


Eligible Prescribed Medical Devices and Equipment

  • Baby Breathing Monitor – monitor must be physically attached to the infant to sound an alarm if the infant stops breathing. Must have a medical practitioner certify in writing that the infant is at risk of sudden infant death syndrome for this to be eligible. Only the breathing monitor is eligible, no additional accessories such as video monitors are eligible.
  • Devices designed to assist a person to use bathtubs, showers or toilets
  • Devices designed to assist walking where the individual has a mobility impairment
  • Devices designed to enable individuals with a mobility impairment to operate a vehicle
  • Devices used by individuals suffering from chronic respiratory ailment or a severe chronic immune system deregulation
  • Electronic or computerized environmental control systems for individuals with severe and prolonged mobility restrictions
  • Electronic speech synthesizers for mute individuals
  • Equipment that enables deaf or mute persons to make and receive telephone calls including visual ringing indicators, acoustic coupler, and teletypewriter.
  • External breast prosthesis
  • Extremity pumps or elastic support hose to reduce lymph edema swelling
  • Heart monitors or pace-makers (must be primary function of device)
  • Hospital bed, if required in-home
  • Inductive coupling osteogenesis stimulator
  • Monitors attached to babies identified as being susceptible to Sudden Infant Death Syndrome (SIDS)
  • Optical scanners or similar devices for a blind individual to enable him/her to read print
  • Orthopaedic shoes or boots
  • Oxygen tent
  • Power operated guided chair installation for stairways
  • Power operated lifts and transportation equipment designed to allow access to buildings, vehicles or to allow wheelchair access to a vehicle
  • Rehabilitative therapy, lip reading and sign language training
  • Synthetic speech systems, Braille printers and large printon-screen devices that enable blind persons to utilize computers
  • Specially trained animals to assist blind, deaf, or severely impaired persons, including the cost of its care and maintenance
  • Syringes
  • Television closed caption decoders
  • Wigs if required as a result of disease, accident or medical treatment

Beginner's Guide to Health Spending Accounts

Eligible Expenses 

  • Ambulance charges
  • Art therapy
  • Artificial eye or limb
  • Artificial kidney machine, including installation and operating costs
  • Basic cost of Medic Alert jewelry
  • Blood test
  • Blood transfusion
  • Bone marrow transplant
  • Brace (limb or spinal)
  • Cardiographs
  • CAT Scan
  • Catheters, catheter trays, tubing,adult diapers and disposable briefs required by incontinent persons
  • Christian science counselling
  • Colostomy pads
  • Crutches
  • Dental services (crowns, fillings,cleanings, lab tests, etc).
  • Denture repair / replacement
  • Devices to aid the hearing of a deaf person including bone-conduction telephone receivers, extra-loud audible signals and devices to permit volume adjustment of telephone equipment above normal’ levels
  • Diabetic supplies
  • Diathermy
  • Fertility treatments (such as IVF)
  • Hearing Aid batteries
  • Hernia truss
  • Home-maker service & Home care (attendant must be a non-relative – only eligible when other household members are physically incapable of home care)
  • Injections
  • Insulin or substitutes
  • Iron lung
  • Laryngeal speaking aid
  • Lasik eye surgery
  • Liver Extract – inject-able for pernicious anaemia
  • Massage Therapy
  • Metabolic tests
  • MRI scan
  • Nicotine patch
  • Operating room fees
  • Organ transplant
  • Oxygen
  • Pre-natal/Post-natal treatments
  • Prescription birth control pills & devices
  • Prescription drugs (note: medical marijuana is eligible only for medical use when prescribed by a medical practitioner and purchased from one of the Health Canada's licensed producers)
  • Prescription glasses / contact lenses
  • Private/Semi-private hospital room fees
  • Reasonable costs for adapting a residence to accommodate a disabled person (ex: wheelchair ramp, lifts, bath facilities, etc)
  • Reconstructive surgery
  • Rocking bed for polio patient
  • Spinal fluid tests
  • Stool examinations
  • Urine analysis
  • Vaccines
  • Vision Care
  • Vitamin B12 – for pernicious anaemia
  • Weight loss programs - Under the supervision of an MD, Medical Doctor's prescription required
  • Wheelchair
  • X-Ray

Watch this video for a quick overview of eligible expenses.


Travel Expenses 

  • Travel Expenses Medical expenses incurred while travelling may be eligible if you do not have alternate insurance, or if the service is not readily available in your locale. Travel must be necessary for services or expenses to be eligible and may include mileage, meals, accommodations, etc.
  • Air Cleaners – must be prescribed by an MD for a respiratory problem.
  • Air conditioners, humidifiers/dehumidifiers, cooling units-eligible if accompanied by a detailed letter from an MD stating it is required for a medical condition.
  • Athletic therapy – must be performed by an MD
  • Physiotherapist, or Registered Massage Therapist
  • Biofeedback – must be performed by a qualified medical practitioner (ex: MD, RN, ND, DC, R.Ac)
  • Botox injections – eligible with a Doctor’s note stating medical necessity.
  • Circumcision – must be performed by an MD
  • Clinical Hydrotherapy – must be prescribed by an MD for arthritis or musculo skeletal disorder.
  • Cord Blood Collection – qualified only when detailed letter by MD is provided that outlines the procedure is for testing purposes only.
  • Cosmetic Surgery – Must be for medical or reconstructive purposes and not to purely enhance appearance. A Medical Doctor’s note is required.


For an incorporated single person business (with/without spouse):

Beginner's Guide to Health Spending Accounts

For a business with arm's length employees:

Download Beginner's HSA Guide for a small business with employees

Write off 100% of your medical expenses

Are you an incorporated business owner with no employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation: 

Download the HSA Guide for Incorporated Individuals

Do you own a corporation with employees? Discover a tax deductible health and dental plan that has no premiums:

Download the HSA Guide for a Business with Staff

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