How Frontier HSA works

The key facts about Frontier HSA, in plain language. Each sentence stands on its own.

What Frontier HSA is

A Health Spending Account (HSA) lets a Canadian business pay for its employees’ eligible medical expenses.
In Canada, a Health Spending Account is formally called a Private Health Services Plan (PHSP).
A Canadian Health Spending Account is not the same as a U.S. health savings account.
A Canadian Health Spending Account is not a savings or investment account.
The business sets the most each employee can claim in a year.
When the plan and employment relationship qualify, reimbursements are generally tax-free to the employee and tax-deductible to the business.
Tax treatment depends on the business, the employment relationship, the plan structure, and the applicable rules.

Frontier HSA has no monthly premiums.
Frontier HSA has no deductibles.
The business chooses an annual limit for each class of employees.
An annual limit is the most an employee can claim during the plan year.
The business does not pay the annual limit upfront.
The business pays only when a claim is approved.
If no claims are approved, the business pays nothing.
Unused limits are not paid out to employees as cash.
A business can use Frontier HSA alongside insurance, subject to the terms of both plans.

The business must be incorporated.
The person receiving the benefit must have an employment relationship with the corporation.
An employment relationship means the person receives a T4 salary, or has an employment contract and is paid dividends.
Owning shares alone does not make someone eligible.
Incorporated professionals and shareholder-employees can qualify.
Frontier HSA is not available to businesses based in Quebec.
Eligible expenses for a covered spouse, common-law partner, or dependant may be included.
Frontier HSA confirms eligibility when the business sets up its plan.
A business can check its eligibility on the eligibility page.

Frontier HSA covers medical expenses that are eligible under Canada Revenue Agency (CRA) rules.
Covered expenses include dental care, vision care, prescriptions, physiotherapy, massage therapy, mental health therapy, fertility treatment, and medical devices.
An expense must meet the plan’s requirements to be approved.
Uploading a receipt does not mean the claim is approved.
The full list is on the eligible expenses page.

The employee pays for the care and keeps the receipt.
The employee submits the receipt online through their Frontier HSA account.
Frontier HSA reviews each claim.
Frontier HSA may ask for more information before approving a claim.
The business funds each approved claim.
Frontier HSA pays the employee by electronic funds transfer (EFT) to their bank account.
Employees can track the status of each claim in their account.
Frontier HSA provides annual reporting.

Frontier HSA charges an 8% administration fee on approved claims.
The 8% administration fee is the only Frontier HSA fee.
Frontier HSA has no setup fee.
Frontier HSA has no monthly fee.
Frontier HSA has no annual fee.
Applicable taxes are charged on top of the fee.
The fee does not come out of the employee’s annual limit.
On a $1,000 approved claim, the fee is $80.
On a $1,000 approved claim, the business pays $1,080 plus applicable taxes, and the employee receives $1,000.
If no claims are approved, there is no fee.
More detail is on the pricing page.

For a step-by-step walkthrough, see how it works.