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A Quikcard Health Spending Account (HSA) is a great way to give your employees access to funds to pay for their healthcare in a cost-effective and tax-efficient manner.
Whether you run a small business, or your business is growing and expanding, you need a benefits plan that suits your business and supports your employees. Quikcard offers a full range of Employee Health Benefit plans to meet the health benefits needs of all Canadian employees. Quikcard will help understand your needs and create a plan for you that not only leverages opportunities but also contains costs. A Quikcard employee health benefits plan will bring value to your business and your employees. Plus, with our online app, it’s easier than ever to get set-up and start delivering top-tier coverage to your employees.
What is a Health Spending Account (HSA)?
An HSA is an employer funded account that can be used to pay for expenses that are not typically included in a traditional benefits plan (including laser eye surgery or fertility treatments). Using an HSA as an alternative, or as a supplement, to a traditional employee benefits plan offers your employees freedom and flexibility when it comes to their own health and well-being.
Setting up a health spending account is easy with Quikcard. There are no sign-up fees, no transaction fees, and no medical questionnaires to fill out. All that’s required from you is to pay into the plan on a monthly basis. Contact one of our representatives to get started setting up your HSA today.
How do Health Spending Accounts work?
Health spending accounts provide the flexibility for your employees to pay for eligible medical expenses not covered by traditional plans, with tax-free dollars. Available to incorporated companies (even sole proprietorships operated by a single employee), a Quikcard health spending account is fully customizable, allowing you to determine the amount that will be paid into the account every month and setting the limits on what an employee can claim.
Who can use a Health Spending Account?
Health spending accounts are available to:
- Business Owners (even a sole proprietorship)
- A self-employed individual who pays medical bills
- A self-employed individual who pays income tax/receives a T4 income
In most cases, health spending accounts are used by businesses and individuals who are self-employed (ex. contractors or consultants). While HSA’s offer health and dental coverage, they operate based on the principles of tax planning and are structured differently based on how your business is set-up.
For small businesses with employees, contributions by the employers are 100% tax-deductible and employee reimbursements are 100% tax-free. For self-employed individuals, an HSA turns after-tax personal medical expenses into pre-tax business deductibles.
What are the benefits to the employer?
A Health Spending Account is a cost-effective means for a business to provide employees a way to pay for health-related costs while providing a tax benefit to the employer.
- Health spending accounts aide in employee attracting and retention
- Cost control and customization for employers
- Contributions from the employer are 100% tax-deductible
- Funds not used but the employees are returned to the employer
- No expense for the employer until a claim is made by the employee for an eligible expense
Quikcard’s Health Spending Account is so easy to use. We implemented it throughout our entire company and everyone is loving the ease and flexibility.
What are the benefits to the employee?
A Health Spending Account is established to exclusively pay for health care services for your employees and their families. It doesn’t include any mandatory coverage and can be used to pay for expenses not covered under traditional plans, such as laser eye surgery or fertility treatments.
- Offer employees flexibility and choice on what they want to use their HSA credits for
- Offer employees a tax-free allowance
- Cover expenses not eligible to be claimed under traditional benefit plans
- Offer employees an active role in their health
How does a Health Spending Account compare to a traditional benefits plan?
Compared to traditional benefits plans, HSA’s offer a wider range of claimable options.
*The list above is an example of some of the expenses that can be reimbursed through a Quikcard HSA. Please note that this list differs based on province or territory. For more information on eligible medical expenses, see Income Tax Folio S1–F1–C1, Medical Expense Tax Credit.
What can be claimed with an HSA?
- Assistive Mobility Device
- Audiologist Services & Hearing Aids
- Autism Treatments
- Cataract Surgery
- Chiropodist Services
- Chiropractic Services
- Contact Lenses
- Dental Hygienist Services
- Dental Technologist Services
- Elderly Parent & Department Care
- Fertility Drugs & Treatment Services
- Laser Eye Surgery
- Massage Therapist (RMT)
- Medical Laboratory Services
- Medical Radiation Treatment
- Midwife Services
- Naturopath Services
- Occupational Therapist Services
- Optician Services
- Optometrist Services
- Orthodontic Services
- Physiotherapist Services
- Prescription Sunglasses
- Psychologist Services
- Respiratory Therapists
I don't know why anyone would ever go back to having a traditional benefits plan. There is so much flexibility with a Health Spending Account.
HSA Frequently Asked Questions
Where can I find a full list of eligible HSA expenses?
What expenses are not eligible within an HSA?
Expenses not listed as eligible by CRA are considered not eligible. Some common items that are not eligible include the services of non-qualified medical practitioners, health supplements, cosmetic services, and exercise equipment.
How does an employee check the balance of their HSA?
Once your Quikcard HSA is set up, employees will have access to their own personal account where they can check their balance, submit claims, and search through a directory of providers.
Additionally, we have an app for Apple and Android users available to download to make accessing their HSA easy and stress-free.
What happens to unused HSA credits at the end of the year?
Any credits that have not been used by the employee can be rolled over to the next year or be credited back to the employer, depending on how you would like the account to be structured. Our Quikcard HSA Reps can help walk you through all of the available account set-up options.
How much does a health spending account cost?
Quikcard HSA plans only cost your company money when your employees utilize the plan. All unused pre-payments can be returned to your company. Contact our Quikcard team for a custom quote.
What is your HSA cancellation policy?
Your Quikcard HSA plan is an administration contract. You can terminate this administration contract by providing written notice 60 days ahead of your desired termination date.
How do I set up a Health Spending Account?
It is easy to set up a Quikcard HSA plan. Contact our team by phone, through the website chat function, or by email to get the process started.
Do I have to renew my HSA plan each year?
Your Quikcard HSA plan is an administration contract. There is no requirement for an annual renewal.
Who do I contact if I need help or questions about my hsa?
Our Quikcard team is available by phone, web chat and email.
How long after my HSA account is set up can I submit a claim?
Unless you have forward dated the effective date of your plan, your employees can submit a claim as soon as you have enrolled them in the plan.
What documentation is needed to make a claim with my health spending account?
If mailing or emailing your claim submission, a signed claim form along with the receipt or invoice showing the product or service acquired, name, amount paid, and date of delivery or service is required for all submissions. If the plan is a supplemental plan, you will also have to submit the Explanation of Benefits (EOB) from the primary plan. You can also submit your claims through the web portal or mobile app, where you will attach a picture of your receipt/invoice/EOB and select a few fields.
How long does it take for an employee to get their money back after making a claim?
Quikcard claims are processed within 48 hours of receipt in our office. Payments are issued twice weekly and are received the next business day if paid by electronic transfer.
What is the claims process for Health spending accounts?
Employees can submit their claims through their individual web portal, the Quikcard mobile app, by email, by fax or by mail.
Is there a deadline for filing HSA claims?
Claims should be submitted within 12 months of the original date of service. However, if the employer has terminated the Quikcard HSA plan, claims must be submitted within 60 days of the termination date.