{"id":1603,"date":"2021-08-30T11:41:19","date_gmt":"2021-08-30T15:41:19","guid":{"rendered":"https:\/\/www.ayurfinancial.ca\/?p=1603"},"modified":"2021-08-30T11:41:19","modified_gmt":"2021-08-30T15:41:19","slug":"the-unique-advantages-of-health-care-spending-accounts","status":"publish","type":"post","link":"https:\/\/www.ayurfinancial.ca\/the-unique-advantages-of-health-care-spending-accounts\/","title":{"rendered":"The Unique Advantages of Health Care Spending Accounts"},"content":{"rendered":"\n
These accounts can pay you back for qualified health care expenses<\/em><\/p>\n\n\n\n A health care spending account (HCSA), also known as a health spending account (HSA), is an employee benefit that offers reimbursement for eligible health care expenses. These accounts can help supplement existing coverage and fill in the gaps where public health insurance falls short.<\/p>\n\n\n\n The public health care system in Canada offers coverage for most medical expenses but not everything. Many health care services, like dental or vision care, are not covered by the system, and some Canadians opt for private insurance to cover these costs. This type of private insurance is rarely a benefit an employer can offer, especially if they are a small business.<\/p>\n\n\n\n Instead, many Canadian employers offer health care spending accounts that reimburse employees for health care expenses not covered under the provincial health insurance plans. HCSAs allow employers to offer employees money to pay for out-of-pocket health care expenses, like dental services, eyeglasses, or hearing aids. Eligibility is generally determined by the employer, but an employee must work at least 20 hours a week to qualify.<\/p>\n\n\n\n HCSAs are typically offered by employers as either part of a benefits package or on a stand-alone basis. They also offer certain financial advantages. Employers fund HCSAs on a monthly basis, and the money they contribute to the account is tax-deductible. Withdrawals are tax-free for employees as long as they spend them on eligible medical expenses.<\/p>\n\n\n\n An employee\u2019s access to the money left over in the account at the end of the year depends on the plan their employer offers. Employers typically have three options for handling unused balances, including:<\/p>\n\n\n\n Employees do not have to pay taxes on withdrawals for eligible medical expenses. The Canada Revenue Agency (CRA) determines what is considered an eligible expense, such as:<\/p>\n\n\n\n There are some medical-related expenses that aren\u2019t covered, such as:<\/p>\n\n\n\n For a complete list of eligible expenses, visit the CRA website.<\/p>\n\n\n\n A HCSA offers tax benefits to employers and flexibility and freedom to employees, allowing them to pay for medical expenses not covered under their provincial health insurance plan. If you have any questions about your plan, contact your employer.<\/p>\n\n\n\n SOURCES:<\/p>\n\n\n\n https:\/\/www.bbd.ca\/blog\/health-care-spending-account-hcsa\/<\/a><\/p>\n\n\n\n https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/about-your-tax-return\/tax-return\/completing-a-tax-return\/deductions-credits-expenses\/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html<\/a><\/p>\n\n\n\nWhat is a Health Care Spending Account and how do I qualify?<\/strong><\/h2>\n\n\n\n
How do HCSAs work?<\/strong><\/h2>\n\n\n\n
What medical expenses are eligible for a HCSA?<\/strong><\/h2>\n\n\n\n