Health Spending

One of the most underused benefits that are available for incorporated business owners and their families

  1.  Do I operate an incorporated business?
  2.  Do I have medical expenses?
  3.  Do I pay income tax?
Ask Yourself 
If the answer is yes to these three questions, a Health Spending Account will save you money
The biggest financial mistake people make is not taking advantage of  tax deductions that are available to them”. 
Why?   “They do not know about them.”
David Chilton, author The Wealthy Barber
In its simplest form, a Health spending account allows you to pay medical, dental and vision care expenses for you and your family
with pre-tax dollars. 
Maximum 2 employees in all provinces except Ontario, 1 employee in Ontario,  and are not available in Quebec.

What is a Health Spending Account

There is a wide range of eligible expenses for a Health Spending Account.
Here are some highlight of those expenses:
  • All prescription drugs
  • All dental - includes orthodontics
  • All optical - includes laser eye surgery
  • Paramedical - includes chiropractor, massage, physio, orthotics
  • Premiums - health and dental premiums paid through spousal plan
  • Other Expenses - MRI, tuition for special needs
  • Co-payments and deductibles

Eligible Expenses

Choice 1 Out of Pocket:
After Tax Medical Expense
The medical expense is paid for by you, personally, with out of pocket after tax dollars. After tax dollar is the amount remaining after
personal income tax is paid. In this example’s tax rate, your company would need to pay you $1,780 (before tax). 43% would be paid in
income tax ($780).
This would leave you with $1,000 (after tax) to cover the cost of your medical expense. 
Choice 2 HSA:
Before Tax Medical Expense

On this side, the medical expense is paid through your corporation as a before tax business expense. Effectively, you are able to write off 100% of your medical expense through your corporation. Value is created by keeping the additional 43% tax inside your corporation.
The annual fee in this example is only paid once per year. On your next claim there would be no administration fee, thus increaseing your savings. 
The Olympia HSA has an annual subscription fee of $299.00, and is available for one person businesses, either incorporated or self-employed, the annual subscription fee includes the following three items:
Health spending account
  • There is no set up fee
  • There is no administration fee to process claims (cost plus 0%)
  • No Cancellation fee
  • Online claims
  • Sign up in less than 5 minutes

What's Included and Pricing 

Travel Insurance
  • Coverage per trip of up to 90 days
  • Up to $2,000,000 of coverage
  • Coverage up to and including age 69
  • Single and family coverage (for employees, spouses of any age and/or dependent children)
  • No deductible
  • No pre-existing condition clause up to age 65
Basic Medical Insurance
  • Accidental dental
  • Ground ambulance
  • Semi-private hospital
  • Mobility Aids
  • Home care nursing
  • Convalescent care

Get the Beginners Guide