Health Spending Account Coverage
You are in the best position to decide what health care products and services are most appropriate for your family. No HMO, insurer, employer or doctor can make those value judgments for you. With a health spending account, you can make those decisions (subject to the Income Tax Act) and be reimbursed up to your spending limit.
Your employer should make regular (usually monthly) deposits to your health spending account.
These funds can only be used to pay your eligible health expenses while you are covered by the plan.
Funds that are not used within a specified period are refunded to the employer.
Claims should be sent in monthly but no later then the end of the year in which the product or service as purchased.
You will be reimbursed for eligible expenses with funds in you health spending account.
Claims that have been approved but not fully reimbursed will be paid with future deposits made during the calendar year.
- Who: Expenses can be for:
- your spouse who resides with you, or
- your children and stepchildren who:
- are dependent on you for support at some time in the year, and
- reside in Canada at some time in the year, and
- are unmarried, and
- work less than 30 hours per week, and
- are either under the age of 18, or under the age of 25 and attending an college or university.
- Certain financial dependent disabled family members residing in Canada
- What: The most common claims are for dental, drugs, vision and professional services (massage therapy, chiropractic).
- Why: Claims must be for products and service that are medically necessary to treat an illness or injury.
- Where: Products and service may be purchased anywhere in the world.
- When: Expenses can be reimbursed during the year the products and services were purchased with funds in the health spending account.
Your employer has chosen a carry-forward method that will apply to all staff. Either the unused contributions that made to your health spending account during the year or the unpaid claims that you incurred during the year may carry forward to the next calendar year.
Deposit Carry-forward Method
- Unused deposits made to the health spending account during the current year are carried forward and may be used to reimburse expenses incurred during the next calendar year.
- Unused deposits made to the health spending account during the previous year are refunded to the employer.
Claim Carry-forward Method
- Claims incurred during the current year are carried forward and may be reimbursed with funds deposited during the next calendar year.
- The deposit balance in the health spending account is refunded to the employer.