In your FAQ, you say that CRA requires that an HSA must use a 3rd party to process claims. Can you please tell me specifically where this guidance is found?
PreTax Health Spending Account PHSP Canada Hi Carol. This flows from section 248(1) of the Income Tax Act and is also discussed in IT339R2: For a plan to qualify as a PHSP, there must be a contract of insurance with proper indemnification, which means a third party is required. In addition, we should note that claims must be adjudicated and tracked according to CRA (Canada Revenue Agency) guidelines and these guidelines often change. If the CRA conducts an audit it is the business that is on ‘on the hook’ to explains things to the CRA. PreTax Health and our adjudication partners, National Health Claim are 100% CRA compliant, we keep impecible records and we fully support our business clients. Our compliance ensures that a business is never at risk from non-compliance with respect to HSA claims.
The PreTax Health Team