In this post, we outline how we handle claims in CRA’s grey area for eligibility, such as vitamins and supplements.
Health Spending Accounts or HSAs are governed by Canada Revenue Agency guidelines. Emphasis should be placed on the word guidelines. Often, there is grey area with those guidelines and whether a claim submitted to the myHSA system is eligible for tax-free reimbursement under the plan.
We want to balance the needs of myHSA plan members to invest in what matters most to their wellbeing with protecting them in the event of a CRA audit.
We recognize that there is a lack of consistency in the marketplace in dealing with Health Spending Accounts and what is eligible. With the goal to treat all plan members fairly and consistently so that there are no surprises when you try to submit a claim, we wanted to share how we treat health spending account claims that are not eligible under CRA guidelines.
In 2015, CRA indicated that 10% of claims that should be considered ineligible for reimbursement can be processed through a health spending account. The decision is outlined here.
The most significant claims that we see that are ineligible are vitamins and supplements, but plan members who require things like a breast pump but don’t have a prescription from a doctor, procedures to remove growths or abnormalities are also fairly common.
Generally, we see people focusing on a more preventative, wholistic approach to wellness, and we’re proud to partner with business owners who want to support and improve their health and that of the people who support them.
If you’re wondering whether your expense is eligible or what restrictions would be applied to the amount, please contact us.