Here’s How your Health Spending Account Works

An HSA is an account that works similar to a bank account in that you decide how much of your unused FlexDollars to put in, (deposits are made on a quarterly basis) and then throughout the year, withdrawals can be made from your balance to pay for out-of-pocket medical and dental expenses.

In advance of each benefit year, you decide based on medical or dental expenses you may have, the number of FlexDollars you wish to allocate to your HSA. You make a one-time allocation to your HSA each benefit year during re-enrolment. You may carry forward any balance in your HSA into the following benefit year. You will forfeit any balance remaining in your HSA at the end of the second benefit year. For an example of how the HSA works, see the example below:

During the benefit year, you can use the allocated funds in your HSA to be reimbursed for eligible health and dental expenses. However, a medical or dental practitioner must prescribe the service or item. The list of eligible expenses that can be reimbursed using the HSA is set by Canada Revenue Agency and is quite comprehensive. The medical expense must qualify for the medical expense tax credit under the Income Tax Act.

HSA Eligible Expense Examples

You can use your HSA to pay for items like the cost of your deductible or co-insurance; for example, the 20% you are required to pay on your prescription drugs under Option 2. You can also use the HSA for expenses that exceed plan maximums, for example, vision care.

Additional covered items include:

• Glasses, contact lenses
• Laser eye surgery
• Prescription sunglasses
• Over-the-counter drugs*
• Massage therapy
• Orthodontic services
• Cosmetic Dentistry & Whitening
• Dieticians *
• Diabetic Pumps
• Elderly Parent & Dependent Care
• Fertility Drugs & Treatment Services
• Special Needs Tuition & Services
• Speech-Language Pathologists

*Prescribed, Dispensed, and/or Supervised by a Registered Medical Practitioner