Administration of a Health Spending Account

Employee Claim

Employees may send a completed claim form, along with receipts to the email or physical address shown on the claim form. Claims are confidential and should not be seen by the employer in order to preserve the privacy of medical information. Within a few days, a claim payment will be deposited directly into the employee’s bank account or mailed to their home.

Claims may be submitted as frequently as desired, but no later than the end of the calendar year the product or service was purchased. Receipts from prior years will be processed but it is to the employee’s advantage to submit claims prior to the year-end refund process.

Account balance information is available online and provided with claim cheques.

Claims Support

Adding Staff

Employees can be added to the health spending account as they qualify based on the description of eligibility shown on the employee booklet. Simply provide the employee’s full name, salutation, effective date of coverage, province of residence and contribution amount with your monthly remittance. If your practice is to prorate the initial partial month’s contribution then also provide the employee’s regular contribution amount.

Terminating Staff

Employees can be terminated by providing their name and last day of coverage by e-mail or with the monthly remittance. Coverage should be provided to the end of their employment period which includes any vacation payout or statutory notice period. If your practice is to prorate the final month’s contribution then provide the contribution amount.

Monthly Contributions

Health spending account contributions should be made at the beginning of each month so the employees have access to the funds throughout the month. Remittances may be made by eTransfer, electronic bank transfer of cheque. A remittance confirmation will be provided each time funds are received or contributions are allocated to employee accounts.

Year End

A few days after December 31, once the year-end mail has cleared, the benefit year is closed off.

  • Employers receive refunds of contributions that can no longer be used by employees plus any applicable provincial taxes.
  • Employees receive tax receipts for eligible expenses that can no longer be reimbursed.
  • Employees with the deposit carry-forward method receive an opening account balance for the new year equal to the unused contributions made during the prior year.
  • Employees with the claims carry-forward method receive an opening approved claims balance of the total eligible products and services purchased during the prior year that were not fully reimbursed.

New Year

You may update your health spending account contribution formula at the beginning of each calendar year. Once you commit to a formula you must continue with it for the remainder of the year.