Health Spending Accounts
Health Spending Accounts are self-Insured Private Health Services Plans.
HSA for Incorporated Employers
HSA are available to bona fide employees of corporations, earning a salary,
starting with as few as one employee. If the employee is also a shareholder, then
benefit maximums must be "reasonable", and not be based on dividend income.
HSA for Non-Incorporated Employers
HSA are available to bona fide employees of non-incorporated businesses,
who are "arms-length" employees. An actively employed owner can participate,
if the benefits arranged are the same as those of the "arms-length" employees.
Private Health Services Plans
Private Health Services Plans can be self-Insured (an HSA) or Insured, as
explained in IT-339R2 "Meaning of PHSP". Eligible Expenses for PHSP are
explained in Tax Folio S1F1C1 "Medical Expenses" (replaces IT-519R2).
Health and Welfare Trusts
Health and Welfare Trusts can optionally include one (or a combination of),
a) group Term Life Insurance, (b) group Sickness or Accident Insurance, or
c) Private Health Services Plan, explained in CRA Tax Bulletin IT-85R2.