Health Spending Account (HSA)
Health Spending Account (HSA) for Ontario Businesses
The Health Spending Account could be used by self-employed business owners and their families, it could also be designed as companies’ group benefits plan.It lets the insured choose the benefits they want. It is like a bank account that is established exclusively to pay for health-care services, using pre-tax dollars. HSAs can be used to augment or replace your health benefits plans. Unlike traditional plans, which often include items that you don’t want or need, a Health Spending Account, lets you choose which healthcare services you want. You decide how much to contribute and choose the services on which you wish to spend from HSA. Unused contributions can also be carried forward into future years. (Notes: Sole proprietorship and cooperation would have different rules.) You’ll get the choice and flexibility you want – and you have complete budget certainty for your health benefits plan.
If you are going to pay for your health expenses anyway, why not pay them in a tax-deductible way?