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Health Spending Accounts (HSA) for Canadian Businesses

CRA compliant Private Health Services Plans (PHSP)*

250.590.5747

Eligible Expenses

These are CRA responses to specific questions.

Would an Apple iPad that is acquired to assist certain special needs children, including autistic children, to communicate more effectively qualify under an HSA?

Unfortunately, the answer is no. An Apple iPad is not a medical expense that is described in subsection 118.2(2) of the Income Tax Act. For a more detailed discussion, please contact us.

Would cosmetic procedures to treat melasma that is severe, persistent and disfiguring qualify for the under an HSA?

Medical services to treat melasma that is severe, persistent and disfiguring would generally be considered to have a medical or reconstructive purpose. For a more detailed discussion, please contact us.

Does the cost of cosmetic procedures qualify under a private health services plan?

CRA's position on this is "generally no". Cosmetic procedures would generally not qualify as medical expenses unless the services are for medical or reconstructive purposes. There are some procedures that on the face of it would appear to be cosmetic in nature but are allowed by CRA. For a more detailed discussion, please click here to see our March 7, 2011 Blog post or contact us.

Do payments made to a personal fitness trainer qualify under a health spending account?

CRA's position on this is "no". Payments made to a personal fitness trainer do not qualify uner a PHSP. For a more detailed discussion, please contact us.

I have to travel some distance for medical care, what travel expenses qualify under an HSA?

Transportation expenses can be claimed if a patient must travel at least 40 kilometres from his or her home to receive medical services, but only if substantially equivalent medical services are not available in that locality; the route travelled by the patient is a reasonable direct route, having regard to the circumstances; and the patient travels to that place to obtain medical services for himself or herself and it is reasonable under the circumstances to travel to that place to obtain those services. Reasonable travel expenses other than transportation can be claimed if the patient must travel at least 80 kilometres from his or her home for required medical services. Reasonable travel expenses include accommodation, meals, and parking. Transportation and travel expenses for an individual to accompany the patient on such a trip can be claimed as well if a medical certificate certifying that the patient was incapable of travelling alone is provided. For a more detailed discussion, please go to our Blog and once there look on the right hand side below the "Recent Posts" and select "Travel Expenses" from the "Categories" section blog page or contact us.

Would the cost of dental implants would qualify under an HSA/PHSP?

CRA's position on this is "yes". The cost of dental implants do qualify uner a PHSP, provided the payment is made to a medical practitioner or dentist. For a more detailed discussion, please contact us.

Would the cost of: (1) An in-vitro fertilization process performed outside Canada qualify as medical expenses under an HSA, and whether (2) The related travel costs for an in-vitro fertilization performed outside Canada qualify as medical expenses under an HSA?

CRA's position on this is "Yes" to in-vitro fertilization costs. They also responded "Yes" to travel costs "if the conditions of paragraph 118.2(2)(g)(v) are met." For a more detailed discussion, please click here to see our July 6, 2011 Blog posts or contact us.