Claim Workflow
1. Employee incurs an eligible expense
Pays out of pocket for a medical, dental, or vision service from a licensed provider. Expense must quality under the Income Tax Act.
Examples: prescription glasses, orthodontics, physiotherapy, prescription drugs.
2. Employee submits the claim
Uploads the receipt through the HSA administrator’s online portal or mobile app, including provider details, date of service, and amount paid.
Most administrators support direct mobile photo uploads.
3. HSA administrator adjudicates the claim
Verifies CRA eligibility, confirms available HSA balance, and reviews supporting documents. The claim is approved, partially approved, or declined.
Typical turnaround two to five business days.
4. Employee is reimbursed tax-free
Approved claims are deposited directly into the employee’s bank account. A statement of benefits is issued and the HSA balance is updated.
Reimbursement is not reported as taxable income.
5. Employer is invoiced
The administrator bills the employer for the reimbursed claim plus an 8.5% administration fee and applicable provincial tax.
Pay-as-you-go: employer is only billed for claims actually paid.
6. Employer pays via their business account
The administrator processes a pre-authorized debit from the employer's business bank account to cover the reimbursed claim amount, administration fee, and applicable taxes. Payment is triggered automatically following invoice generation.
No manual transfers required: the withdrawal is initiated by the administrator on a per-claim basis.