Health Spending Account for Canadian Small-Business

Yes! A Kibono Health Spending Account – HSA – is 100% tax-deductible for a business and all employee claim reimbursements are received tax-free. This means for every dollar you, your employees and their families claim with a Kibono HSA can be used to reduce your taxable business income each year. This is more cost-effective than a traditional health plan where only the insurance premiums are tax-deductible, with an HSA the total claim amount plus any associated administration fees and government taxes charged by the HSA provider are 100% tax-deductible.

No, they are completely different yet most Canadians conflate the two. Health benefits or extended benefits, relate to routine Drug, Dental, Optical and Medical expenses. Think prescription drugs, glasses, dental check-ups and massages. Health insurance refers to risk-based products purchased to protect oneself against unforseen catastrophic events such as Life, Disability, Critical Illness or Emergency Hospital & Travel insurance. This distinction is important because major insurers like to bundle extended benefits with insurance into a single premium to justify premium increases each year since any claim will raise your plan usage and perceived ‘risk’.

All Canadians have access to universal health care under their provincial medical plan such as Ontario Health Insurance Plan – OHIP – for those residing in Ontario. This means any medical expense where your provincial health card is required for services is covered by the government. This includes but is not limited to visits to the doctor and to the hospital. Any other health related costs such as prescription drugs, dental, optical or medical expenses for routine procedures or items like dental cleanings, prescription eye glasses or physiotherapy is not covered by the government. Employers that offer employee group benefit plans often cover a very limited portion of the costs associated with these routine benefits. Only employers with a Health Spending Account like a Kibono HSA can cover 100% of all CRA-eligible Drug, Dental, Optical and Medical expenses for their employees.

A Kibono Health Spending Account – HSA – covers every personal medical expense deemed eligible by the Canada Revenue Agency, including prescription drug, dental, optical and medical costs. This list is far more extensive and flexible compared to extended-benefits offered by traditional group health plans which often restrict what you can claim and how much per visit. For example, a Kibono HSA covers pregnancy and fertility treatments such as IVF which is rarely covered by any traditional group health plans. With a Kibono HSA, you have a total annual balance offered by your employer to spend on any CRA-eligible medical expense you need, no matter how much each visit or item costs. View all HSA eligible claims using our table above!