The Health Spending Plan Visa card (HSP Visa)
The HSP Visa is an account that you may use to be reimbursed for healthcare expenses up to the pre-set amount which has been allocated based on your coverage under the Health and Dental Plan.
BENEFITS PLAN CHANGES for 2024
The Health & Welfare Trustees met with our auditor to review the 2023 financial statement. Contributions from employers were down 41% while claims increased significantly. The Trust suffered a $12 million operating deficit and in 6 months spent $5M to keep members in benefits. We did this by reducing hour bank withdrawals by 50% and reducing the cost of top up by 50%.
To preserve our benefits plan and ensure it’s sustainability, the Health & Welfare Trustees have had to make some difficult decisions. The Health Spending Account is reviewed annually prior to renewal in September and unfortunately there will be no Health Spending Account offered September 1, 2024. This amount will be reviewed again in August 2025 with the hope of reinstating it. This has no impact on unused balances set to carry over.
The money on your HSP visa can be used to pay for most health and dental expenses (including deductibles and co-payments) that are not covered or are not fully covered under your extended health and dental benefits.
You do not pay tax on the money transferred to your HSP visa, so your buying power is increased. (Different rules apply for Quebec residents; any amount transferred to your HSP visa will be subject to provincial income tax, but not federal income tax.)
You can use your HSP visa to cover eligible expenses for you and your eligible dependants – even if you do not have couple/family coverage under your extended health and dental plan. Eligible dependants include any family member – parent, grandchild, grandparent, aunt, uncle, niece, or nephew – who you claim as a dependant on your tax return.
Allocation of Funds:
Any money the I.A.T.S.E Health & Welfare Trust allocates to your HSP visa in one plan year must be used to pay eligible health and dental expenses by the end of the next plan year – otherwise, it will be forfeited. The money allocated to your HSP Visa cannot be withdrawn as cash and claims must be received by Great-West Life within 120 days following the end of the plan year in which the expense occurred. Your HSP visa card terminates when your Extended Health and Dental Plan ends or your membership with the local is terminated.
Any account balance left unused as of August 31st, will be carried forward for (1) additional plan year when the new plan year begins on Sept 1st.
Account balances that are forwarded are combined with any new amount which is put onto the card at the beginning of the new plan year (Sept 1st) by the trust.
If any account balance carried forward, is not used within this 24-month time frame, the funds will be forfeited.
For example – Funds put onto your card as of September 1, 2020, must be used by August 31st, 2022; otherwise they will be forfeited. This is in accordance with the policies of the Canada Revenue Agency. See website for further details –
What can be claimed as medical expenses
The following are some of the eligible health care expenses, prescription drug costs and/or dental expenses that the HSP visa card may be used for:
- The 20% not currently covered by the plan.
- Major Dental expenses over the plan limit which you would have to pay or major dental expenses such as Dental Implants which are not covered by the plan.
- Orthodontic expenses that are not covered by the plan
- Contact lenses, prescription lenses, or frames that you are not eligible to have covered by the Trust.
- Private hospital room expenses above the semi-private room expenses currently covered by the plan
All expenses are reimbursed at 100% of the cost and the date of the expense is determined by the date the expense was paid for.
Limitations:
- Dispensing fees cannot be covered by the HSP visa.
- Alternative medicine – the HSP visa may be used for some expenses if they are prescribed by a licensed physician or medical practitioner prior to your treatment.
- Some medical devices or aids may only be covered if they are prescribed by a licensed physician.
- Laser eye surgery – will be covered if it is performed at an accredited institution by a licensed physician.
- The card will only work for eligible healthcare expenses at approved provider locations.
- The card will not work at: ATMs, retail stores or at a pharmacy for non-prescription drug purchases.
How to make a claim using the HSP Visa Card.