HSA Eligible Expenses for Prescription Drugs and Medications in Canada

By Frontier Team•February 10, 2026•3 min read

Prescription drugs are the number one most claimed expense through a Health Spending Account in Canada. If your business has an HSA, every prescription filled by a licensed practitioner can be reimbursed with pre-tax corporate dollars -- saving you 30-50% compared to paying out of pocket.

What Prescription Drugs Are Covered

Any medication prescribed by a licensed medical practitioner and dispensed by a pharmacist is an eligible medical expense. This includes:

  • Prescription medications -- antibiotics, blood pressure medications, antidepressants, pain medications, and anything else your doctor prescribes
  • Insulin and insulin substitutes -- covered without a prescription, as the CRA treats insulin as a standalone eligible expense
  • Vaccines -- flu shots, travel vaccines, shingles vaccines, and other immunizations
  • Medical cannabis -- eligible when you have a medical document from an authorized healthcare practitioner and the product is purchased from a Health Canada-licensed producer
  • Drugs obtained through Health Canada's Special Access Program

If a licensed practitioner prescribed it, your HSA covers it.

What's NOT Covered

A few common items that do not qualify:

  • Most over-the-counter medications -- Tylenol, Advil, cold medicine, and antacids are not eligible unless a medical practitioner writes a prescription for them
  • Supplements and vitamins -- multivitamins, fish oil, and herbal supplements are not eligible on their own. However, they become eligible when prescribed by a practitioner for a specific medical condition

The important thing to remember: a prescription changes the picture. If your doctor prescribes a vitamin or over-the-counter medication for a diagnosed condition, it becomes eligible.

How to Claim Prescription Drug Expenses

Claiming is straightforward, but you need the right receipt:

  1. Fill your prescription at any pharmacy
  2. Keep the pharmacy receipt -- make sure it shows the Drug Identification Number (DIN), the prescribing practitioner's name, the patient name, and the amount paid
  3. Submit a photo of your receipt through the app
  4. Get reimbursed by e-transfer within 24-48 hours

The DIN is the eight-digit number that identifies the drug as a registered product in Canada. Your pharmacy receipt includes it automatically -- just keep the detailed receipt, not the credit card slip.

How Much Can You Save

Say your family spends $200 per month on prescriptions -- $2,400 per year. Without an HSA, you need to earn roughly $3,400-$4,000 in pre-tax income to cover that cost. With an HSA, your corporation deducts the full $2,400 as a business expense and you receive the reimbursement tax-free. That's over $1,000 in savings every year on prescriptions alone.

Get Started

If you're paying for prescriptions out of pocket, you're leaving real money on the table. Frontier Health makes it easy to set up an HSA with no setup fees and no monthly premiums. Start claiming your prescriptions tax-free today.

For a full list of everything your HSA covers, check out our complete guide to HSA eligible expenses. To learn more about how HSAs work, read How Does a Health Spending Account Work in Canada.

Simplify Your Business Health Benefits

Get Started