HSA for Fertility Treatments: IVF, Egg Freezing, and More in Canada

Yes, fertility treatments are fully eligible through a Health Spending Account in Canada. IVF, egg freezing, fertility drugs, and a wide range of related expenses all qualify as CRA-approved eligible medical expenses. If your business has an HSA, you can cover these costs with pre-tax corporate dollars -- which makes a massive difference when treatments can cost $10,000 to $20,000 or more per cycle.

Fertility Expenses Covered by Your HSA

The CRA recognizes a broad list of fertility-related medical expenses. Here is what you can claim through your HSA:

• In vitro fertilization (IVF) -- the full cost of each cycle, including consultations, procedures, and lab fees
• Egg freezing (oocyte cryopreservation) -- retrieval and storage fees
• Sperm freezing -- collection and storage fees
• Embryo storage fees -- ongoing cryopreservation costs
• Fertility drugs and medications -- hormone injections, stimulation drugs, and other prescribed fertility medications
• Fertility testing and diagnostics -- blood work, ultrasounds, semen analysis, and other diagnostic procedures
• Intrauterine insemination (IUI) -- procedure and related costs
• Donor expenses -- egg donor or sperm donor fees
• Surrogate mother medical expenses -- medical costs related to the surrogacy

This is not a short list. The CRA treats fertility care the same as any other medical expense, which means your HSA can cover almost every cost involved in the process. For the full list of what qualifies, see our complete guide to HSA eligible expenses.

Why Most Insurance Plans Fall Short

Traditional group insurance plans either exclude fertility treatments entirely or cap coverage at a very low amount -- often $1,000 to $3,000. That barely covers a single round of fertility testing, let alone a full IVF cycle.

With an HSA, there are no treatment-specific limits. Your full annual balance can go toward fertility care. If you know fertility treatments are coming, you can set a higher HSA limit to make sure you have enough coverage when you need it.

How Much You Can Save

Fertility treatments are among the most expensive medical costs Canadians face. A single IVF cycle typically runs $10,000 to $20,000 when you include medications, monitoring, and the procedure itself. Many people need more than one cycle.

Paying out of pocket means using after-tax personal income. But paying through an HSA means your corporation covers the cost as a tax-deductible business expense -- and you receive the reimbursement completely tax-free. That translates to savings of 30-45% depending on your tax bracket.

For example, a $15,000 IVF cycle paid out of pocket might require $22,000 to $27,000 in pre-tax income. Through an HSA, your business writes off the full $15,000 as an expense, and you pay nothing in personal tax. To see exactly how much your business could save, try our HSA tax savings calculator.

How to Maximize Your HSA for Fertility

• Increase your HSA limit -- if you are planning fertility treatments, talk to your administrator about setting a higher annual allowance
• Cover your spouse -- dependent coverage means your spouse's fertility expenses are eligible too, even if they are not an employee of your business
• Track every expense -- fertility involves many smaller costs like lab fees, prescriptions, and follow-up visits that add up quickly and all qualify

Get Started with Frontier Health

If your business does not have an HSA yet, Frontier Health makes it easy to set one up. There are no monthly premiums, no setup fees, and no treatment exclusions. Every CRA-eligible fertility expense is covered -- and your business writes off the full amount as a deductible expense.

Related Reading

• HSA claim requirements -- What you need to submit a claim