Health Spending Account

A flexible, tax-effective way to fund employee health, dental, and vision expenses

A Health Spending Account (HSA) gives Canadian employers a CRA-approved framework to reimburse employees — and their dependents — for a broad range of medical, dental, and vision expenses, with full tax efficiency for both the business and the employee. WesCan helps Alberta, BC, and Saskatchewan businesses design HSAs that complement, supplement, or replace traditional group benefits.

Procedures & Treatments
  • Cosmetic surgery — eligible only when necessary for medical or reconstructive purposes (e.g., correcting a congenital abnormality or personal injury from an accident)
  • Covid tests (completed) processed by a lab or pharmacy — no prescription required
  • Electrolysis — only amounts paid to a qualified medical practitioner; purely cosmetic procedures are not eligible
  • Fertility-related procedures — amounts paid to a medical practitioner or a public/licensed private hospital to conceive a child (amounts paid for a surrogate mother are generally not eligible)
  • Laser eye surgery — paid to a medical practitioner or a public/licensed private hospital
  • Medical services provided outside of Canada — amounts paid to a medical practitioner and a public or licensed private hospital when travelling for care
  • MRI, ultrasound, X-ray treatments
  • Tests — the cost of non-holistic medical tests such as electrocardiograms, metabolism tests, radiological services or procedures, spinal fluid tests, stool examinations, sugar content tests, urinalysis, and allergy or asthma testing*
  • Treatment centre for a person addicted to drugs, alcohol, or gambling — a medical practitioner must certify in writing that the person requires the specialized equipment, facilities, or personnel provided
Durable Equipment
  • Air conditioner — lesser of $1,000 or 50% of amount paid for a person with a severe chronic ailment, disease, or disorder*
  • Air filter, cleaner, or purifier for severe chronic respiratory ailment*
  • Any apparatus or material — where payment is made directly to a doctor, dentist, nurse, or hospital
  • Any device designed to assist an individual in walking, where the individual has a mobility impairment
  • Baby breathing monitor — requires written certification from a medical practitioner that the infant is at risk of sudden infant death syndrome
  • Bathroom aids to help a person get in or out of a bathtub or shower, or on or off a toilet*
  • Brace for a limb, spinal brace
  • Braille note-takers, printers, synthetic speech systems, large print-on-screen devices, computer peripherals, etc., designed for a person who is blind to operate a computer*
  • CPAP — continuous positive airway pressure devices and supplies
  • Crutches
  • Diabetic supplies and devices
  • Electronic bone healing device*
  • Hearing aids or personal assistive listening devices, including repairs and batteries
  • Heart and blood pressure monitoring devices, pacemakers — including repairs and batteries*
  • Hospital bed if required in the home*
  • Incontinence supplies — catheters, catheter trays, tubing, etc.*
  • Lift (power-operated) to lift a wheelchair into a vehicle or to access different areas of a building*
  • Needles and syringes*
  • Oral appliance — must be customized to the patient by a dentist or orthodontist
  • Orthotic inserts, orthopedic shoes or boots*
  • Oxygen and equipment*
  • Phototherapy equipment for treating psoriasis or other skin disorders — amounts to buy, operate, and maintain the equipment*
  • Prosthetics, artificial limb
  • Renovation expenses specifically required for a person with mobility impairment — doctor confirmation required
  • Support hose, compression stockings to relieve swelling*
  • TENS / electrotherapy devices*
  • Wheelchair or scooter used instead of a wheelchair
  • Wigs — for a person who has suffered abnormal hair loss because of a disease, accident, or medical treatment*
Professional Services
  • Acupuncturist (R.Ac.)
  • Anesthesiologist
  • Athletic therapist — must show professional registration number
  • Audiologist
  • Chiropodist
  • Chiropractor (DC)
  • Dermatologist*
  • Dietitian or nutritionist (registered)
  • Gynecologist (Ob. Gyn)
  • Homeopath (registered professional)
  • Kinesiologist
  • Massage therapist (must be provincially registered)
  • Mental health professional (registered) — clinical counsellor (RCC), psychiatrist (C.Psych), psychoanalyst, psychologist (PsyD), psychotherapist (RP), registered psychotherapist, social worker (RSW, MFT)
  • Midwife (registered)
  • Multiple allowable professional expenses (totals add up)
  • Naturopath (ND)
  • Neurologist
  • Nurse — RN, LPN, NP
  • Occupational therapist
  • Orthopedist
  • Osteopath — certificate issued for the individual under the laws of the jurisdiction in which the individual resides, or of a province (or nationally)
  • Pharmacist
  • Physician (MD), pediatrician, podiatrist (DPM), surgeon
  • Physiotherapist (B.PhysT, B.ScPhysio, B.Physio, CPTA)
  • Plastic surgeon — must be medically required with doctor certification
  • Prosthetist
  • Respiratory therapist
  • Speech therapist (SLP)
  • Traditional Chinese medicine practitioner (TCM)
  • X-ray technician
Miscellaneous Allowable
  • Doctor's note or form completed by a doctor
  • Employee premium paid to a non-government medical or hospitalization plan (e.g. Blue Cross, Manulife Flexcare, Sun Life Affinity) — health, dental, and vision premiums only. Critical illness, accidental death & dismemberment, life, and disability premiums are not eligible.
  • Gluten-free products — with a letter from a qualified practitioner; only the cost difference for the part of the product consumed by the person with celiac disease is eligible
  • Home care for an illness or disability — submission must include a letter from a licensed medical professional stating that the home care is medically required
  • Private healthcare — membership or access fees paid to a private medical clinic, where fees represent pre-payment of eligible medical expenses
  • School for persons with a mental or physical impairment — requires written certification from an appropriately qualified person (e.g., medical practitioner, principal, or head of the school) that the equipment, facilities, or staff are needed because of the person's impairment
  • Travel (40 – 80 km) — public transportation expenses (taxi, bus, or train) when a person needs to travel at least 40 km (one way) but less than 80 km from home to obtain medical services. Where public transportation is not readily available, vehicle expenses may be claimable.
  • Travel expenses (at least 80 km) — additional rules apply; contact your HSA administrator for clarification
  • Under paragraph 118.2(2)(a) of the Income Tax Act, an eligible medical expense includes an amount paid to a medical practitioner, dentist, or nurse, or a public or licensed private hospital, for medical or dental services provided to the patient

* A prescription or written certification from a qualified medical practitioner is required for the listed item to qualify under the HSA. Eligibility is ultimately determined by the Canada Revenue Agency and confirmed at the time of claim by the HSA administrator. This list is provided as a working reference and is not exhaustive.

Frequently Asked Questions
General
Q1. How is an HSA different from a traditional group benefits plan? +
A traditional group plan is an insurance policy — the employer pays a monthly premium, and the insurer reimburses claims according to a fixed schedule of benefits with category maximums, deductibles, and co-insurance. An HSA is not insurance — it is a self-funded reimbursement framework administered under CRA rules. The employer sets a defined dollar amount per employee, and employees claim eligible expenses against that allocation. There are no category sub-limits and no co-insurance, but there is also no pooled risk-sharing across the larger insured population.
Many WesCan Insurance Brokers (WIB) clients use both — a traditional plan for predictable, high-frequency claims and catastrophic protection, paired with an HSA for flexibility and to cover gaps.
Q2. Who can be covered under the employee's HSA? +
The employee, their spouse or common-law partner, and any dependent children may submit claims against the employee's HSA allocation, provided the expense is CRA-eligible and incurred during the plan year.
Q3. What happens to unused HSA funds at year-end? +
HSA plans are typically set up with either a one-year carry-forward of unused balances, or a one-year carry-forward of unsubmitted claims. CRA rules prohibit indefinite roll-over — unused funds or claims must be used within twelve months of the plan year-end. Your WIB advisor will help you select the structure that best fits your workforce.
Q4. Is there a minimum or maximum contribution amount? +
CRA does not prescribe a fixed dollar minimum or maximum, but the allocation must be reasonable in relation to the employee's compensation and consistent with the plan's classification rules. Common HSA limits range from $500 to $5,000 per employee per year, with higher allocations often used for executive classes or owner-operators.
Q5. Are HSA contributions taxable to the employee? +
In every province except Quebec, HSA reimbursements for CRA-eligible medical expenses are received tax-free by the employee. In Quebec, HSA benefits are subject to provincial taxation. Contributions remain a deductible business expense for the employer in all provinces.
Q6. How are claims submitted and reimbursed? +
Employees submit claims through the HSA administrator's online portal designated for plan members or mobile app by uploading an image of the receipt. The administrator adjudicates the claim as per the CRA eligibility rules and deposits the reimbursement directly into the employee's/plan member's bank account.
Q7. Can an HSA replace a traditional group plan entirely? +
For some businesses, yes — particularly small or newly incorporated firms where traditional underwriting is restrictive. For most established employers, however, we recommend an HSA as a complement to, rather than a replacement for, a traditional group benefits plan. A traditional plan offers pooled protection for high-cost claims (such as expensive prescription drugs and major dental work), and the two structures together typically deliver the strongest overall value.
Plan Administrator
Q8. How does the banking and withdrawal process work? +
On our Pay as You Go model, the company funds the plan as employees make claims. Claims that are approved during the week are batched and processed three times a week, on Mondays, Wednesdays, and Fridays. Payments, including administration fees and applicable taxes, are then withdrawn from the corporate bank account on the same day.
Plan Administrators receive an email notification on the withdrawal date with a PDF detailing the withdrawal details. To reconcile the amount, you can run the Bank Rec Report for the specified period, which provides a breakdown of the total amount of claims plus associated taxes and fees.
Q9. How do I add a new employee? +
1. Navigate to the Employees tab on the left sidebar.
2. Select the Add Employee button.
3. Fill out the employee's profile — name, address, province, gender, and date of birth. Ensure all required fields (marked with an asterisk) are completed accurately.
4. Attach a plan to the employee's account. Select the plan type from the drop-down menu. If applicable, select a wait period and/or an allocation window open date. Click Save & Setup Balance. You can select a prorated balance, give the full distribution, or input a manual balance.
5. Once successfully added, invite them to log in by going to their profile and clicking "Send Welcome Email."
Q10. How do I terminate an employee's account? +
1. Navigate to the Employees tab on the left sidebar.
2. Select the employee's name to bring up their profile page.
3. At the bottom of the page, locate "Other Actions" and click "Terminate Employee."
4. Enter the termination date and any applicable run-off period. This is optional and allows employees to finalize claims for eligible expenses dated on or before the termination date.
To terminate immediately, enter a 0 day run-off period.
Can I terminate employees in bulk?
Currently, terminations are processed individually.
Q11. How do I change an employee class? +
1. Navigate to the Employees tab on the left sidebar.
2. Select the employee's name and go to the "Plan" tab.
3. Click "Change Class." The employee must be moving between classes of the same plan type.
4. Select the new class, effective date, and whether to prorate the balance. Click Save.
Q12. How do I unlock an employee's account? +
As a security measure, Plan Administrators are no longer able to unlock locked accounts. Please reach out via live chat or at support@getmyhsa.com for assistance.
Plan Member / Employee
Claims
Q13. My claim says "Paid" but I don't see it in my bank account +
Claim payouts are scheduled every Monday, Wednesday, or Friday, whichever comes first after approval. You'll see the Estimated Deposit Date on your "View Claims" tab. On the payment date, the status transitions to "Paid" (app) or "Approved for Payment" (desktop).
Different banks have different processing times. Generally, expect the reimbursement by the afternoon of the deposit date or the following morning.
Q14. How do I make a claim? +
1. On your dashboard, select Make a Claim.
2. Select the Claimant Name, Plan, and Benefit Period.
3. Enter Category, Subcategory, Service Date, and Claim Amount, and attach receipts.
4. To add more expenses, select "Add Expense to Claim."
5. Click Submit. Your claim will be reviewed within 1–3 days.
Q15. How do I edit my claim? +
Select the pending claim on your View Claims page, click "edit", attach updated documents or drag and drop into the receipts box, then select "update" at the bottom to save. The claim will return to the adjudicator for review.
Q16. What does my claim's status mean? +
Pending: Under review (1–3 days). A "?" means the adjudicator needs more info — click "edit" to respond. Can be edited or cancelled.
Approved: Accepted for reimbursement. Payout on the next Monday, Wednesday, or Friday.
Paid: Payment processed. May take a few hours or overnight to appear depending on your bank.
Denied: Not approved. A note will explain why and what's needed.
Eligible Expenses
Q17. How can I check what is eligible under my plan? +
On your Dashboard, select the Covered Items button to view eligible expenses. Use the "+" icons to expand categories and sub-categories. For more detail on a specific item, check the Help Centre via the blue icon at the bottom corner of each page.
Pay and Balances
Q18. How do I check my current available account balance? +
Your balance is displayed on your dashboard and updates in real-time — submitting a claim reduces it immediately.
Q19. How can I check my plan information and details? +
On your dashboard, select "My Plan Information" to review benefit period, plan amount, coverage percentage, carryover details, grace period, dependent eligibility, and more.
Q20. What are the Carryover and Reserve balances available for? +
Carryover Balance: Unused credits carried forward to the next benefit year. Can settle outstanding claims from the previous year or fund new expenses. Carryover funds are used first, followed by your Current balance.
Reserve Balance: Reserved for submitting past-year claims during the grace period. Once the grace period ends, these funds expire.
Grace Period: The timeframe after a new benefit year starts during which you can submit outstanding claims from the previous year. Check your "My Plan Information" section for your specific timeline.
Availability of carryover, reserve balances, and grace period depends on your specific plan design and may not apply to all accounts.