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Health Spending Accounts …its your money …its your choice!

Health Spending Accounts …its your money …its your choice!. Session Objectives. To define and explain a Health Spending Account Review an example. Health Spending Account (HSA). Uniquely designed bank account Exclusive purpose – healthcare expenses

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Health Spending Accounts …its your money …its your choice!

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  1. Health Spending Accounts …its your money …its your choice!

  2. Session Objectives • To define and explain a Health Spending Account • Review an example

  3. Health Spending Account (HSA) • Uniquely designed bank account • Exclusive purpose – healthcare expenses • In compliance with the Income Tax Act (85R2) • Funds held in Trust • All deposits are a 100% business deduction • Deposits for an employee are tax free to spend • Unparalleled choices of eligible spending • Unspent deposits carry forward for future spending

  4. How the HSA Works Jane Dental In Trust Institution Administrator Daily Vitamins $ Employer Bob Laser Eye Surgery John Monthly Deposits to Health Trust Trust Deposit Divided into Individual HSAs Spending Choice or Roll Over

  5. Establishing the Appropriate HSA In order to determine the appropriate HSA for your clients, find out their incorporation status… Incorporated Business Sole Proprietor Not Incorporated Health & Welfare Trust (HWT) Private Health Services Plan (PHSP) No Forfeiture No Employees* Employees No Annual Contribution Maximums 2 year Forfeiture of Unspent Funds Employer - PHSP Employees – HWT Annual Maximums Self - $1500/yr Spouse - $1500/yr Dependent > 18 $1500/yr Dependent < 18 $750/yr Contributions are pro-rated by calendar year *If the sole proprietor income-splits with a spouse, that spouse can be considered an employee, therefore eligible for an HWT

  6. Eligibility of Expenses The following conditions must be met in order for medical expenses to be eligible for coverage or reimbursement through an HSA: 1. Treatments must be performed by a licensed Medical Practitioner* 2. Products must be prescribed by a Licensed Medical Practitioner and dispensed by a licensed Pharmacist or licensed Medical Practitioner * Each province sets its own criteria for eligibility as a Licensed Medical Practitioner

  7. Licensed Medical Practitioners Audiologist Dental Technician Naturopath Occupational Therapist Chiropodist Denturist Nurse Physiotherapist Chiropractor Dietician Ophthalmologist Psychologist Dentist Lab Technician Optician Reg’d Massage Therapist Dental Hygienist Midwives Optometrist Respiratory Therapist Eligible Family Healthcare Expenses Acupuncture Dentures Orthopedic Shoes Botox Treatments Dermatologist Orthopedist Birth Control Pills Drug Addiction Therapy Oxygen/Oxygen Equip. Chinese Medicine Drugs (prescription) Physiotherapist Chiropodist Eyeglasses Psychoanalyst Chiropractor Hearing Aid Psychologist Contact Lenses Hydrotherapy Psychotherapy Contraceptive Devices Laser Eye Surgery Reg. Massage Therapy Cosmetic Surgery Nursing Homes Skin Care (medical) Crowns & Bridgework Ophthalmologist Therapy Equipment Crutches Optical Centres Viagra Dental Implants Optician Vitamins (prescribed) Dental Treatment Optometrist Wheelchair Dental Whitening Orthodontics X-rays

  8. Dependent Details • Any person related by blood/marriage/law • Must be financially dependent • Includes: • Children/Grandchildren • Parents/Grandparents • Siblings

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