Definition:
Gilbert Benefit Consulting’s Employee Health Care Plan is a Health Care Spending Account [HSA] as defined by section 248 {1} of the Income Tax Act {ITA} and Interpretation bulletin No. IT-339R2. The Act allows a HSA to take a number of different forms, but the plan must include a contract of insurance as part of its definition.
Services Offered:
Gilbert Benefit Consulting has developed a program for which we will administer a Health Care Spending Account that a corporation has for its employees. Specifically we are offering the following:
- GBC contracts with an employer for the purpose of indemnification of an employee’s health services as defined by the specific terms of the contract.
- Eligible health services are defined by Paragraph 118.2 {2} of the Income Tax Act, and limited to items elected to by the employer.
- Employers will be given the option of funding it’s obligations under the plan in advance, of funding the plan at the time that the employee submits the health care receipts.
- GBC will reimburse employees for the eligible receipts that have been submitted under the plan.
- GBC provides a statement of expense to the employer for all claims.
- GBC will then charge an additional nominal fee to the employer for this service.
General Contractual Terms:
The actual requirements of HSA to ensure that it qualifies to Revenue Canada’s satisfaction can get extremely complicated. As an integral part of the services Gilbert Benefit Consulting offers, our contract with the employer specifies a number of key points which are undertaken to ensure that the Plan remains a non taxable benefits to our client’s employee’s under paragraph 6(1)(A)(I) of the Income Tax.
- The employer is under a legal obligation to fund the plan for as long as the plan exists. That is the employer self insures this program for employees and is the underwriter.
