The Health Care Spending Account (HCSA)
The HSP Visa is being replaced by a health care spending account for eligible members as of January 2026. This account will work similar to the Visa where you may use the account to be reimbursed for healthcare expenses up to the pre-set amount of $200 which has been allocated to you.
How do I know if I am eligible? Members who earned at least 1680 in paid hours between July 1st and June 30th, 2025 will have $200 deposited to their HCSA in January 2026.
Additional flexible coverage -Understanding the benefits of your healthcare spending account.
Did you leave a recent massage therapy appointment with an out-of-pocket amount after your employee
benefits plan paid its portion?
Need another pair of prescription glasses but met your vision maximum for the year?
Have a dental procedure that exceeds your yearly plan maximum? Your healthcare spending account
(HCSA) can help with all that. Think of it as an added layer of protection to the base benefits you already have – that you can use your way, when you need it most.
Your HCSA at work
Let’s say your prescription drug plan covers you for 80%, leaving you out of pocket 20%. Once your
claim is paid for by your base plan, submit the remaining balance to your HCSA to achieve 100%
coverage.
A $100 drug claim:
$80 paid by your base plan
$20 paid by your HCSA
Means you’re $0 out of pocket
What happens at the end of your plan year?
At the end of your plan year, unused credits will expire.
How does an HCSA work?
You start each plan year with a certain number of credits in your account that are usually decided
by your plan sponsor. Throughout the year, you can use the credits to pay for, or top up certain
coverages. These can apply to health, vision and dental care expenses that aren’t covered by your group
benefits plan or provincial health care plan. Things like hearing aids, eyeglasses or topping up
coverage for your child’s braces.
You can use an HCSA to cover costs that qualify for a medical expense tax credit under the Income
Tax Act. In Quebec, you’ll pay provincial income tax on your HCSA benefit payments.
Who can use your HCSA – Your HCSA covers you, your spouse and your dependants if:
- You’re already covered by the Canada Life basic group benefits plan
- Your spouse and dependants are already covered for basic health care benefits by your group plan
or your spouse’s plan - In addition to the dependants eligible for coverage under your basic health plan, HCSA benefits are
extended to any other person for whom you are entitled to claim a medical expense tax credit under
the Income Tax Act (Canada). - If your dependent child isn’t eligible for basic health care benefits because of student age
restrictions, they may still qualify for the HCSA.
How to submit your claim
Online – You can submit, track and view your HCSA claims anywhere, anytime on My Canada Life at Work website and app. With instant payment details most of the time, it’s the quickest and easiest way to submit claims. Depending on your situation, there are two ways to submit your claims.
- Submitting a claim to both your base plan and your HCSA?
You can do it all in one step on
My Canada Life at Work.
Just submit your claim as usual under your base plan. During the process, you’ll be asked if your
plan only covers part of the expense. Select Yes if you’d like the remaining amount to be paid from
your healthcare spending account.
No need for a second submission — it’s that simple! - Submitting a claim to your HCSA only?
When submitting your claim, be sure to select Healthcare Spending Account from the Plan Type
drop-down menu, then follow the prompts to complete your submission.
Claim submission deadlines
Also known as the grace period, you have a certain number of days (usually 31 days) after the end
of the plan year in which expenses are incurred to submit your claim. Find out how long you have on
the Healthcare Spending Account Coverage and Balance section of My Canada Life at Work along with
all the other information about your healthcare spending account. You can also find this
information in your plan booklet or ask your plan administrator.
Important reminder about claim submission deadlines for an HCSA
The deadline to submit eligible claims under an HCSA is much shorter under the HCSA than it is for
the base plan. This shorter deadline means it’s especially important to submit HCSA claims promptly
after they’re incurred.
How to check the balance of your healthcare spending account
Sign in to My Canada Life at Work and go to the Coverage and Balance section of your Healthcare
Spending Account to see how much you have left. Or you can call us at 1-877-883-7072 Monday to Friday from 8 a.m. to 8 p.m.