Don't all Health Spending Account providers adjudicate claims according to the same set of standards?

They should -- but they don't.

Although there are many companies (including established health insurance providers) that offer Health Spending Accounts, it is important to understand if they adhere to CRA guidelines.

The industry is full of examples of companies who claim to provide a 3rd party adjudication service for Health Spending Accounts, yet there are many cases where a CRA audit has found that these companies are not properly adjudicating claims, are allowing employers to view confidential employee medical information, or are merely rubberstamping claims that do not qualify under CRA guidelines.

The reality is that if your organization happens to use a service of this nature, a CRA audit may result in a large tax reassessment -- non-eligible expenses can be reassessed as a shareholder benefit, and be subject to tax, arrears and penalties.

It is important to ask your chosen provider for proof that they strictly adhere to CRA guidelines for the adjudication of Health Spending account claims.