Frontier HSA

Frontier HSA: health spending accounts for Canadian businesses

Frontier HSA offers a Health Spending Account (HSA) aimed at incorporated Canadian businesses and their owners and eligible employees. The model works as an employer-funded plan: the business reimburses eligible medical expenses and, when the business and plan meet the applicable requirements, reimbursements can be deductible to the corporation and received tax-free by the employee.

The proposition differs from traditional group insurance in that no monthly premiums are paid. The business pays only approved reimbursements, plus an 8% administration fee and applicable taxes. If no claim is approved, there is no cost. Unused annual limits do not generate any payment or convert into cash.

How a claim works

The site describes the process with an example of a $180 dental claim. The employee submits the request; the business pays $194.40 plus taxes, corresponding to the $180 claim and $14.40 fee (8%); and the employee receives $180. Most claims, according to the company, are processed and reimbursed within 24 hours.

The business sets an annual claim limit for each eligible employee and can define limits by employee class. The amount must be reasonable based on the role and plan design. Nothing is paid upfront: the business funds claims as they are approved.

Covered expenses

The catalogue of eligible expenses includes, among others, the following services and treatments:

• Routine dental cleanings with a dentist or dental hygienist.
• Eye exams and vision tests with an optometrist.
• Prescription medication dispensed by a pharmacist.
• Physiotherapy and rehabilitation with a licensed physiotherapist.
• Psychology: counselling, therapy, and assessments with a psychologist.
• Chiropractic care: appointments and adjustments with a licensed chiropractor.
• In vitro fertilization (IVF) and related medical costs.
• Massage therapy with an eligible registered massage therapist.

Employees can spend on any eligible expense up to their annual limit, with no category caps. The plan policy determines covered services and their limits.

Eligibility requirements for incorporated owners

An incorporated business owner may use Frontier HSA as a shareholder-employee when they actively work in the corporation's day-to-day operations and receive the benefit because of that employment, not simply because they own shares. The company considers T4 salary or bonus to be the preferred evidence of an employment relationship, though not the only possible evidence. Dividends do not by themselves establish an employment relationship: under Frontier's eligibility policy, a shareholder-employee who receives only dividends must provide other documentation supporting a genuine employment or officer role and have their corporate accountant confirm the arrangement.

Use alongside insurance

Frontier HSA can be used on its own or alongside insurance, subject to the terms of both plans. The account reimburses expenses up to the plan limit and does not replace life or disability insurance.

Resources and support services

The site provides businesses with resources such as a savings calculator, a guide to eligible expenses, a provider comparison tool, a glossary, and an eligibility checker. It also offers province-specific information (Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan) and a section for accountants. The company notes that the site content does not constitute tax, legal, or accounting advice.

Location and contact

1215 9th Avenue SW, Suite 1053, Calgary, AB T3C 0H9, Canada · Phone: (888) 891-3903 · Email: hello@frontierhsa.ca