Health Spending Accounts

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As an exclusive member benefit, the $300 set-up fee is waived for APEGA members. There is no set-up cost.

What is a Health Spending Account?

A Health Spending Account (HSA) is a unique and innovative program available to incorporated business owners across Canada providing a tax efficient structure to fund health and dental expenses for both employees and business owners alike. It can work together with your existing insurance plan to pay for expenses not reimbursed (or partially reimbursed). Alternatively, it can be a stand-alone solution. In any case, a HSA provides favorable flexibility and tax advantages (i.e., you can use it to pay for eligible medical, dental, and vision care expenses that aren’t covered by your health insurance plan, and it allows these expenses to be treated as a ‘business expense’ to your corporation).

View a list of eligible expenses

Is a Health Spending Account right for you and your business?

HSAs are a good fit people and businesses who:

  • are self-employed and incorporated, and/or employees
  • want to manage health and dental expenses in a tax advantageous way
  • want to keep their family and/or employees healthy and productive
  • want to offer employees a health and dental benefit that is flexible and adaptable to their needs
  • are too small to warrant a traditional group benefits plan, but still want a way to offer health benefits

Depending on your personal marginal tax rate, savings can range from 18% - 43% when using a HSA.

Read more about why to get an HSA

How does a Health Spending Account work?

  1. You (the business owner) or an employee incurs a health or dental expense.
  2. The individual who incurred the expense electronically submits the claim to your HSA provider for processing. Your HSA provider requests the required funding from the business owner as needed and processes the claim to ensure it is compliant with CRA guidelines.
  3. Upon approval of the claim, your HSA provider deposits the funds into the claimant’s personal bank account free of tax, i.e., Claims are paid with before-tax corporate dollars and become deductible as a business expense.
HSA Diagram

Garrett Agencies Ltd. is the authorized advisor to assist APEGA members with their Health Spending Account set up. Claims can be submitted quickly and easily using a mobile app and taking a photo of your receipts.

View a screenshot of the mobile app

For Health Spending Account advice, benefits, and other details, or to apply, visit the Garrett Agencies Website or call 1-800-661-3300 (Monday to Friday, 8:30 a.m. to 4:30 p.m. MST).

Health Spending Accounts are administered by National Health Claim Corporation – a premium provider of Health Spending Accounts.

About Garrett Agencies

Garrett Agencies is an independent insurance consulting firm that has supported and serviced the Engineers Canada plans for over 25 years. Garrett Agencies regularly provides competent professional advice and customized insurance, tax, and estate planning solutions to thousands of APEGA members – at no additional cost. In addition to being the authorized advisors (Engineers Canada Plans), Garrett Agencies accesses the entire Canadian insurance marketplace to provide objective analysis and comparisons regarding any life or health insurance product offerings available in Canada for both individuals and businesses.

How to Redeem

1-800-661-3300

Website

http://www.garrett.ca/bohealthspending