Health Spending Accounts
Health Spending Accounts
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, we help you set up the account, choose your coverage level, and handle the administration.
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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
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 and 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.
Get started
Let’s get the right coverage in place.
Book a consultation in Toronto or virtually, or send us a note and we will be in touch within one business day.
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