Health Spending Account dependant (Yes, your family is eligible)

By: Updated: April 13, 2021

At times there can be confusion as to exactly what constitutes a Health Spending Account dependant.

Let's clear the noise. Here's the reference definition you need to know.

How are dependants defined? (in terms of a Health Spending Account)

Dependants are defined as your legal spouse and unmarried, unemployed dependant children, including natural, adopted and step-children. Children of your common law spouse may also be considered an eligible dependant if living with the plan holder. In order to be considered an eligible dependant you must be claiming them on your personal income tax return.

Dependant children are eligible for benefits until the age of 21. A dependant child is eligible until the age of 25 if they are enrolled in full time post secondary education.. If you declare a disabled or dependant adult on your personal income tax return, they may also be considered for eligibility.

How much can dependants claim?

You and your dependants can claim up to $15,000 per year. This amount is for the entire family. Under exceptional circumstances where an unusually large medical expense is required, a one-time adjustment can be made to accommodate the expense.

How does a Health Spending Account work in conjunction with spousal health insurance?

If you have spousal insurance, the Health Spending Account is the last payer. In other words, if there is a spousal plan or another health and dental plan in place, any premiums paid to that plan is an eligible medical expense. Likewise, any co-pays or items not covered under those plans can be included when submitting a claim through your Health Spending Account. Submit all claims, if eligible, to other providers first and any co-pay would be included in your HSA claim.


Download the Olympia HSA Walkthrough ebook: 

Olympia HSA Walkthrough for incorporated individuals


Related Reading:

What's covered in a Health Spending Account?

How does a Health Spending Account work for a small business in Canada?

How does a Health Spending Account Rollover work?

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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