Plan HSA medical-supply reimbursements by checking the precise expense and participant, confirming the available allowance and adding administration and applicable taxes to the funded cost. The employer plan must qualify as a Private Health Services Plan (PHSP); a supply’s medical purpose alone does not establish eligibility.
The example below is illustrative. It does not report a verified customer, claim history, invoice or amount of tax saved.
Check the medical expense and the plan
CRA’s medical-expense guidance includes ileostomy and colostomy pads. Confirm the precise expense, the eligible participant, the supporting receipts and the employer’s plan terms before submitting a reimbursement claim.
Expense eligibility is one part of the assessment. The arrangement must also meet PHSP requirements for the associated federal employee tax treatment. Where a person is both an employee and a shareholder, the capacity in which the benefit is received matters. Incorporation alone does not establish the result.
Keep reimbursement, administration and taxes separate
Under the current Wellbytes Pay-As-You-Use model, the administration fee is 10% of eligible reimbursed amounts, plus applicable taxes. There is no setup fee or recurring subscription fee under that model. Prepaid administration is based on the accepted rate and annual funding amount.
Funding for medical reimbursements is separate from the administration fee. The accepted agreement, selected funding option and applicable invoices determine when the employer must pay. Current published prices do not establish the fee accepted by a customer in an earlier period.
Illustration: $15,000 of eligible reimbursements
Assume a qualifying employer plan reimburses an eligible employee for $15,000 of documented medical expenses within the funded allocation. Applying the current Pay-As-You-Use rate gives:
- Eligible medical reimbursement: $15,000.
- Illustrative administration fee: $15,000 × 10% = $1,500.
- Reimbursement plus administration: $16,500 before applicable taxes and any separately agreed charges.
This is a comparison of cost components. It is not a historical invoice or a calculation of net tax savings. Applicable provincial charges and GST/HST depend on the transaction, date, jurisdiction and tax base; confirm them from the actual agreement and invoice.
Assess tax treatment separately
A corporation’s deduction, an employee’s benefit treatment and the personal medical expense tax credit are different questions. Do not multiply the reimbursement by a personal marginal tax rate and present the result as the corporation’s tax saving.
Actual results depend on the plan, the employee or shareholder relationship, the eligible expenses, applicable federal and provincial rules and the alternatives being compared. Québec has separate provincial treatment for employer-paid private health benefits.
Prepare a supported claim
- Confirm the participant’s eligibility and available plan allocation.
- Keep itemized receipts and any documents required for the particular expense.
- Identify amounts already reimbursed by another plan so the same expense is not reimbursed twice.
- Submit the claim through the accepted Wellbytes process and provide any requested information.
- Retain the claim decision, invoice and proof of reimbursement for the applicable recordkeeping period.
Wellbytes provides administration and claim review. It does not insure benefits or guarantee eligibility, deductibility, a tax saving or protection from CRA review.
Explore Wellbytes HSA administration and review the current administration and pricing terms before selecting a plan.
Sources checked October 20, 2026: CRA medical-expense list; CRA PHSP requirements; Wellbytes Administrative Services Agreement.
