What are the benefits of an HSA?

  • Updated

HSA coverage is broader and more flexible than a traditional benefits Plan. That means there're not as many restrictions - yay!  Generally, the same expenses are eligible for reimbursement... but there are some differences that benefit Plan members in a very positive way. 

No Plan Limits

Traditional health insurance often has a limit on expenses. For example, maybe only 80% of Dental Services get covered, up to a maximum dollar amount in a set time period. Another example is maybe only $50.00 is reimbursable per massage visit and visits are limited to 12. 

However, with an HSA, there's no set percentage of coverage or dollar limit for services. There're also no deductibles that need to be reached before eligible expenses are reimbursed!

The only limit to the amount reimbursable for eligible expenses is the amount of funds available in the HSA. 

Complementary to existing insurance

An HSA is also an awesome complement to existing coverage to reduce out of pocket costs for medical expenses! If you're partially covered by another Plan, you can claim amounts not reimbursed by that Plan through your HSA - so, you're getting full reimbursement of eligible expenses!  

Tax Efficiency

There're fantastic tax benefits with an HSA. For Plan Members, the contributions made to the Health Spending Account from the Plan Sponsor are tax free to the Member.  

If HSA Plan Members were to pay for health expenses outside of an HSA, it means they'd have to file for such expenses on their tax return. Using the CRA's Medical Expense Tax Credit (METC) requires that a family reaches a certain (rather high!) healthcare expense spending threshold before the credit can be used.