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Eligible Expenses, FAQ, Health Spending Accounts

How does a Health Insurance Plan work with a HSA?

A basic drug and extended health coverage plan is a great compliment to your HSA. It can protect your HSA in case of catastrophic illness.

Obviously, the best possible situation for a Canadian tax-payer is is to have comprehensive Health Insurance, with no deductible, and fully paid for by someone else! (generally your employer). For the vast majority of us, this is not possible, and we will pay some or all of the cost of our health plans from our own pockets, and using our after tax dollars.

If you are currently covered by a Health Insurance plan, use the funds in your new HSA to reimburse your self with tax-free dollars for any costs you are required to pay personally – co-pays, dispensing fees, uninsured services, services beyond plan limits, and even the portion of the cost you are required to personally pay for the Health Insurance plan your do have.

If you don’t have a Health Insurance plan currently, or you have a plan that you are not fully satisfied with, we can offer a cost-competitive insurance plan contained within the structure of your new HSA. The premiums will now be 100% tax deductible, and you will protect the funds you accumulate in your HSA against the costs of catastrophic illness. (This also simplifies claiming expenses, as you can now submit all your receipts to a single address and your plan administrator will reimburse you fully from both your Health Insurance plan and your HSA)

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