Medical and Travel Insurance

 

Health & Dental Insurance


Health & Dental Insurance can cover expenses not covered through your provincial health plan. Plans can be tailored to suit your individual needs and can be issued.

 

Emergency Medical Insurance


If you are travelling out of the country or out of the province, ensure you have emergency medical insurance prior to departure. This coverage will protect you in the event of an unforeseen accident or illness which requires medical attention. Your provincial health plan limits payment to what they would have paid out if that injury or illness occurred in your province. A payment which is typically much less than the cost out of province.

 

Health Spending Account


A Health Spending Account (HSA) is similar to a bank account in which you deposit a set amount of money each plan year. Contributions are recognized as a 100% business deduction. You and your employees can submit expenses incurred that are deemed “eligible medical expenses” under the Income Tax Act for tax free reimbursement.*

The list of “eligible medical expenses” is long and varied, but will include all benefits found in traditional health care plans as well as many that are not. Some benefits not normally found in these plans include audiologist services, laser eye surgery, elderly parents and dependent care, fertility drugs and treatment, testing for scholastic ability in children and tuition for special needs education. Coverage is available to the you, your employees and your families including older children, parents and other members of your immediate family who are financially dependent on you.

Each year you determine the amount of money you wish to contribute to the HSA . Premiums are based on the contribution amount, administration fees and method of payment. With every deposit, you are charged an administration fee to cover the cost of adjudicating claims, plus additional taxes. On average this equates to 12% of your contribution amount.

 

Incorporated Entities


There is no limit on the amount you can contribute as long as the amount is reasonable (your accountant should be consulted if your desired contribution amount is questionable). 

 

Non-Incorporated Entities


The annual contribution limit to the plan is capped at $1500 per adult (18 years of age and older) and $750 per child. Excess funds that are not used within 24 months of contribution are forfeited. The amount of contribution allowable is pro-rated based on the tax year.

 

Employees


The HSA provides a tax efficient and flexible way to provide benefits to your employees. This benefit is a better way to provide an increase in compensation as the benefit is tax free to the employee and the funds deposited do not require employer/employee CPP or EI remittances. For employees of a corporation, there is no limit on the contribution level as long as the amount is reasonable. For employees of a non-incorporated entity, there is a limit of $1500/adult and $750/child and a 2 year rollover of funds.

 

Tax Issues*


  • The tax issues discussed here are presented in broad and simple terms. Individual situations may affect the tax deductibility of the premium and tax free nature of the reimbursement. Consult your CA as to the tax implications of a HSA for you and your business.