What is an HSA?

HSA: In Canada, a Health Spending Account (HSA) is an employer-funded plan that provides employees with a flexible way to cover medical and dental expenses. Unlike traditional insurance, an HSA is not a pre-defined benefit plan but a pool of funds that employees can use for a wide range of eligible health-related expenses, as defined by the Canada Revenue Agency. Employees can use their HSA to pay for expenses not covered by provincial health plans or private insurance, such as dental services, prescription glasses, and various medical treatments, offering a personalized approach to healthcare spending. This system provides flexibility and can be a key component in an employee benefits package, enhancing overall compensation and job satisfaction.