Often referred to as an HSA or HCSA, a healthcare spending account is an employee benefit that offers reimbursement for a wide range of health and dental expenses dependent on a member’s own individual healthcare needs. Members have the flexibility to use their HSA dollars to either “top up” traditional benefits by covering any out-of-pocket expenses (such as co-pays, deductibles or amounts in excess of annual maximums) or used to cover benefits not eligible under the benefit plan.

For the 2023 benefit year, eligible Unifor Local 5555, Unit 1 members will receive $400 dollars deposited in their HSA account on July 1, 2023. Effective July 1, 2024, the allocation will increase to $500 per benefit year. For new Unifor Local 5555, Unit 1 hires after July 1, this amount will be prorated based on their start date.  Additional HSA benefit dollars will be loaded on an annual basis every July 1. The HSA is 100% funded by the University.

Healthcare Spending Account dollars can be used to cover expenses partially covered by your extended health and dental plan. Your HSA benefit dollars can be used for expenses incurred by yourself or eligible dependents. You can use your dollars for any out-of-pocket amount as a result of co-pays or benefit maximums. For example, your HSA can cover expenses such as:

– Out of pocket amounts for prescription drugs due to dispensing fee caps or generic substitution.

– Any expense incurred after reaching your annual paramedical maximum.

– Any amount in excess of the maximum covered amount for basic dental procedures or any amount in excess of the major procedure or orthodontic benefit maximums.

HSA dollars can also be used for expenses not covered by the extended health and dental plan.

The Canada Revenue Agency (CRA) determines the eligible expenses for an HSA. HSAs are administered in accordance with the Income Tax Act (Canada) and any expense that qualifies as a medical expense under the federal Income Tax Act qualifies for coverage under a health care spending account.

A detailed list of eligible expenses can be found on the CRA website. Further information on eligible expenses can be found in your benefit booklet or by contacting Sun Life directly.

Similar to extended health and dental claims, Healthcare Spending Account claims can be submitted to Sun Life via online, the mobile app or a paper claim form. When submitting an extended health or dental claim online on the mobile app you will have the option to have any out-of-pocket expense automatically submitted to your HSA. If a pharmacy or dental provider has submitted a claim on your behalf, any out-of-pocket expense for amounts not covered by the benefit plan will need to be paid and then subsequently submitted as a HSA claim separately either online or a paper claim.

HSA balances can be viewed on Sun Life’s online member portal, my SunLife mobile app or by contacting Sun Life directly.

As outlined by the Income Tax Act, any remaining HSA benefit dollars at the end of the current benefit year can be carried over for one additional year. At the end of the second benefit year, any amounts remaining will be forfeited.

For example, unused HSA dollars for the July 1, 2023 to June 30, 2024 benefit year, can be carried forward for the July 1, 2024 to June 30, 2025 benefit year. As with the extended health plan, you have 90 days from the end of the benefit year to submit claims for your HSA to Sun Life.

Note: Annual benefit dollars can not be used for expenses incurred in the prior benefit year.

Example scenario:

You can co-ordinate your health care spending account with any traditional benefit plan you may be covered by, such as a spousal plan. To maximize your HSA dollars, any outstanding balance from your own extended health and dental plan should first be submitted to your spousal plan for consideration. If after coordination there is still an outstanding out of pocket amount, this can then be submitted to your healthcare spending account.