✅ What Can Be Claimed
Eligible expenses under a Health Spending Account (HSA) must meet CRA guidelines for medical necessity. Common examples include dental treatments, prescription medications, vision care, physiotherapy, and paramedical services. If the expense is typically deductible under the Income Tax Act as a medical expense, it is usually eligible under an HSA.
🚫 What Cannot Be Claimed
Ineligible expenses generally fall into the category of non-medical or lifestyle-related. These include cosmetic procedures, gym memberships, non-prescription supplements, and personal care items. Submitting ineligible expenses can result in disqualification of the HSA’s tax-free status.
📝 Documentation Required
Receipts must clearly show the provider name, service date, and nature of the service. Claimants should ensure they submit detailed receipts to support each reimbursement request.
💡 Tip for Employers
Provide employees with a summary of eligible expenses to reduce the risk of ineligible claims and to streamline the reimbursement process.
