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Changes to Health
Spending Accounts (HSA)
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Health Spending Accounts (HSA) are governed by medical
expense eligibility rules under the Income Tax Act. We would like
to remind you that recent changes made by the Federal Government to the
Income Tax Act made cosmetic procedures aimed at enhancing one's
appearance ineligible and therefore, such procedures can no longer be
claimed under the HSA either. Some examples are liposuction, hair
replacement procedures, botulinum toxic injections, and teeth
whitening.
If an employee is uncertain as to whether an expense qualifies, we
recommend they contact the insurance carrier directly and/or submit a
pre-determination in advance of undergoing the procedure or purchasing
the service. Please note, cosmetic services necessary for medical
and/or reconstructive purposes may still be eligible and require a
doctor's referral stating the nature of the illness and reason for
treatment.
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Cancer
Care Treatments
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Canadian Cancer Society statistics indicate 40% of
Canadian women and 45% of men will develop cancer during their lifetimes
based on 2009 incidence rates.
Not all group programs cover the cost of cancer care treatment and
provincial coverage varies significantly among the Canadian provinces.
Health Plan Strategists are also indicating cancer care treatments are
moving to private clinics where the individual will be faced alone with
the financial burden of the expensive but necessary treatments. So how
can you help your employees in the event they are in this situation?
Critical Illness is an affordable solution to provide employees
additional protection if diagnosed with cancer or a number of other
illnesses. Critical Illness is designed to cover the gap between
disability insurance and Life insurance. The benefit is tax-free and can
be used by the insured in any way they wish: to pay for expensive
treatments, modify their home to meet their health needs, or take the
family on a vacation.
This coverage can be offered to your employees as a mandatory benefit at
a flat benefit level or as a voluntary benefit where employees choose the
amount of coverage they wish to purchase. Typically, there is a certain
amount of coverage each employee would be eligible for without having to
provide medical evidence. The rates are age banded and based on gender
and smoking status.
If you would like more information on Critical Illness or
any other benefit, do not hesitate to contact STRATA.
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