519Plan in action.
Here's how 519Plan has helped our clients.
Your company does not have a medical or group benefit plan.

The 519Plan - Health Spending Account can be used as a stand-alone plan or it can be used in conjunction with a traditional insured program of group benefits. As a stand-alone plan, each employee classification is assigned an annual reimbursement limit. Different classifications of employees (i.e. Executives, part-time staff, etc.) may have different reimbursement limits. Employees will be reimbursed for all eligible claims until they reach their assigned limit, at which point no further reimbursement will be provided. If there are unused balances in the employees accounts at year end they will be forfeited, or there is an option available to carry these amounts forward for one calendar year called "Credit Carry Forward".

Back to Top You already have individual healthcare coverage (ie. Blue Cross).

The 519Plan - Health Spending Account will enable reimbursement of health and dental expenses (or portions of unpaid claims) not covered by Blue Cross (or similar Insurance coverage). For example, your Blue Cross type plan may reimburse your dental expenses at 60% up to an annual total of $1,000. With the 519Plan - Health Spending Account in place, any dental expenses above the $1,000 annual limit, as well as the remaining 40% not reimbursed, could be claimed through the HSA. You can now effectively cover up to 100% of your family's medical and dental expenses through your corporation.

Back to Top You are covered under your spouse's benefit plan.

If your incorporated company implements a 519Plan - Health Spending Account, it will cover expenses either partially paid by your spouse's benefit plan or disallowed due to plan design. In addition, you may cover your spouse so that any of his/her expenses, which may have been partially covered or disallowed due to plan design, are now 100% reimbursed. In this situation, you, your spouse, and your dependents would first process any claims through your spouse's plan (attaching all the original receipts). Once the Explanation of Benefits Statement arrives from your spouse's group insurance company, attach this to the Claim Form and remit to National HealthClaim Corp.

Back to Top You are the sole employee of your corporation.

An incorporated business with one employee (eg. Owner) can be set up with a 519Plan - Health Spending Account. In this instance, an executive class is formed and the "employee" and their dependents can claim all eligible health or dental expenses through the HSA, up to the annual maximum. The annual maximum HSA claim limit is recommended to be a reasonable amount proportional to your annual income.

Back to Top You are a Sole Proprietor (not incorporated)

Under the Canadian Tax Act, Sole Proprietors cannot have a stand-alone Health Spending Account because the setup lacks the necessary elements of insurance (eg. you can't indemnify yourself). However, if you have "arms-length" employees (not related) you can utilize 519Plan but the annual limits must comply to $1500 for adults and $750 per child. National HealthClaim does provide an alternate solution for Sole Proprietors (with and without employees) through the CoreHealth+ program. Visit www.corehealthplus.com to learn more.

Back to Top You have many employees in your corporation.

For companies with many employees, the 519Plan - Health Spending Account is an innovative solution to the challenge of providing cost-effective benefits to employees. The 519Plan - Health Spending Account can be structured to provide varying reimbursement limits to different classifications of employees (i.e. executives, full-time staff, etc.). These limits can be tailored to coordinate with your company's overall compensation philosophy. If your company has a traditional benefits program already in place, you can use the HSA to cover items not included in your insured program, such as orthodontics, laser-eye surgery, or prescription sunglasses. The 519Plan - Health Spending Account can even be used to cover items that are only partially covered by an insured program (because of co-insurance amounts or deductibles) to receive full reimbursement of these expenses.

Back to Top You would like to enhance your company's existing benefit plan.

If your company has a traditional benefits program already in place, you can use the 519Plan - Health Spending Account to cover items not included in your insured program, such as orthodontics, laser-eye surgery, or prescription sunglasses. Any items that qualify as medical expenses in the Income Tax Act will qualify for reimbursement under this Plan. The 519Plan - Health Spending Account can even be used to cover items that are only partially covered by an insured program (because of co-insurance amounts or deductibles) to receive full reimbursement of these expenses. Employees can even coordinate their HSA with coverage provided under a spouse's benefit plan.

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