Health Care Spending Accounts (HCSA)
Flexible, tax-efficient health coverage for your business
An HCSA lets business owners and incorporated professionals cover medical expenses through the corporation – turning after-tax personal costs into tax-deductible business expenses.
Health Care Spending Accounts are CRA-recognized, letting you pay for eligible health expenses with pre-tax dollars. For a one-person plan, I help you set up the account, choose your coverage level, and handle the administration.
How it works
Simple from start to finish
01
Set your annual budget
You decide how much the business will make available – for example, $5,000 per year.
02
Incur a medical expense
You or your family receives a medical or dental service – for example, $1,000 in dental work.
03
Submit the claim
You submit the receipt through the HCSA for reimbursement.
04
You get reimbursed
The corporation pays the claim and deducts the expense – and you receive it tax-free.
Real cost example
What a $1,000 claim actually costs
| Item | Amount |
|---|---|
| Total claims | $1,000.00 |
| Administration fee (10%) | $100.00 |
| Subtotal | $1,100.00 |
| HST on admin fee (13%) | $13.00 |
| PST (8%) | $80.00 |
| Premium tax (2%) | $22.00 |
| Total corporate cost | $1,215.00 |
Sample plan design
What a typical HCSA looks like
| Annual limit | $5,000 |
| Administration fee | 10% |
| Coverage | 100% of eligible expenses |
| Who is covered | Owner + family |
why it matters
Personal spending vs. HCSA – the difference is clear
Paying personally
~$1,500
Income needed before tax to cover a $1,000 medical expense out of pocket
Through HCSA
$1,215
Total corporate cost — tax-deductible for the business, tax-free for you
Save ~$285 on every $1,000 claim
Start covering medical expenses the tax-efficient way
Abrams Insurance can help you set up an HCSA that works for your business structure and your family’s needs.