Frequently asked questions

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general

What is a Health Spending Account?

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A Kibono Health Spending Account - HSA - enables Canadian small-businesses to transform employee Drug, Dental, Optical and Medical expenses into tax-deductible claims. An HSA is a cost-effective alternative to a traditional group benefits plan as HSA claims have no impact on your insurance premium, unlike traditional health plans that bundle routine benefits with health insurance.

How does a Health Spending Account work in Canada?

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Employers setup a free Kibono Health Spending Account - HSA - to turn their routine employee medical costs into a 100% tax-deductible business expense. An HSA provider, like Kibono is required to review, approve and reimburse employee claims on behalf of the employer. Kibono charges the employer a fixed-fee per claim for administration services as well as the required government taxes such as PT, RST and HST (*varies by province). Employers can pay monthly invoices or pre-fund their Kibono cash account so claims are reimbursed same-day. The total billed is 100% tax-deductible and claim reimbursements are received tax-free for employees.

How does health insurance work in Canada?

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All Canadians have access to universal health care under their provincial medical plan such as Ontario Health Insurance Plan - OHIP - for those residing in Ontario. This means any medical expense where your provincial health card is required for services is covered by the government. This includes but is not limited to visits to the doctor and to the hospital. Any other health related costs such as prescription drugs, dental, optical or medical expenses for routine procedures or items like dental cleanings, prescription eye glasses or physiotherapy is not covered by the government. Employers that offer employee group benefit plans often cover a very limited portion of the costs associated with these routine benefits. Only employers with a Health Spending Account like a Kibono HSA can cover 100% of all CRA-eligible Drug, Dental, Optical and Medical expenses for their employees.

Are health benefits the same as health insurance in Canada?

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No, they are completely different yet most Canadians conflate the two. Health benefits or extended benefits, relate to routine Drug, Dental, Optical and Medical expenses. Think prescription drugs, glasses, dental check-ups and massages. Health insurance refers to risk-based products purchased to protect oneself against unforeseen catastrophic events such as death, disability, illness or emergency hospital and/or travel related expenses. This distinction is important because major insurers bundle extended benefits with insurance into a single premium. This allows them to justify premium increases each year since every claim will raise your plan usage and perceived ‘risk’.

Is a Health Spending Account tax-deductible in Canada?

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Yes! A Kibono Health Spending Account - HSA - is 100% tax-deductible for businesses and all employee claim reimbursements are received tax-free. Every dollar you, your employees and their families claim with a Kibono HSA is used to reduce your taxable business income each year. With an HSA the total claim amount plus any associated administration fees and government taxes charged by the HSA provider are also 100% tax-deductible. This is more cost-effective than a traditional health plan where only the extended healthcare, vision, and dental portions are tax deductible.

What does a Health Spending Account cover in Canada?

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A Kibono Health Spending Account - HSA - covers every personal medical expense deemed eligible by the Canada Revenue Agency, including prescription drug, dental, optical and medical costs. This list is far more extensive and flexible compared to extended-benefits offered by traditional group health plans which often restrict what you can claim and how much per visit. For example, a Kibono HSA covers pregnancy and fertility treatments such as IVF which is rarely covered by any traditional group health plans. With a Kibono HSA, you have a total annual balance offered by your employer to spend on any CRA-eligible medical expense you need, no matter how much each visit or item costs. View all HSA eligible claims using our claim table on our landing page.
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insurance

Do I need health insurance with a Kibono Health Spending Account?

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No, but Kibono strongly recommends purchasing one or more health insurance products for you and your employees such as Life, Disability, Critical Illness or Emergency Medical to supplement your Kibono HSA for complete and comprehensive health coverage. HSAs are only for routine medical costs like prescription drug or dental costs and do not cover any unforseen catastrophic events such as death or a disability. Health insurance products are very important for complete health coverage.

How much does health insurance cost with a Health Spending Account?

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Insurance products such as Life, Disability, Critical Illness and Emergency Medical can be purchased independently to supplement your Kibono Health Spending Account - HSA -. These insurance products are quoted separately from the fixed-fee per claim associated with your Kibono HSA. Since the cost of a Kibono HSA is separate to insurance, your premiums will be lower than a traditional group benefits plan where benefits are bundled with insurance. Contact us today for an insurance quote.

How do I submit a health insurance claim such as a Life or Disability claim?

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Your Kibono Health Spending Account - HSA - is only for routine Drug, Dental, Optical and Medical claims. Kibono is only a benefits administration company and therefore do not underwrite any catastrophic related policies or contracts. Any insurance-related claims must be sent directly to the insurer that Kibono has set you up with. The insurer will review and process your claim according to their policies and procedures.
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employer

Is my business eligible for a Health Spending Account in Canada?

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If you have a business operating in Canada that employs at least one, salaried employee (i.e. T4 income) who is un-related to you, your business is immediately eligible for a Kibono Health Spending Account. Kibono strongly recommends checking your eligibility with your accountant before self-sign up. Contact us today and we would be happy to help assess your situation. If you have an incorporated business but you or your family members are the only employees, your eligibility must be manually assessed by your accountant. This situation is unclear as described in the following excerpt of the Canadian Income Tax Act.The CRA has given mixed commentary over the years. Based upon our interpretation of the commentary, we do believe that shareholder only corporations are eligible, however, it’s important you get independent tax advice and abide within strict guidelines. Contact us today and we would be happy to help assess your situation.

What is required to set up a Kibono Health Spending Account?

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A Kibono HSA can be setup in minutes. A valid email, credit card or bank account and identification such as drivers license or passport is all that is required to begin claiming. Once you’ve added your business details, simply add your employees and set their annual spend limit. Each employee will receive a welcome email and will begin claiming once they’ve completed their onboarding.

What is the difference between a Monthly and Prepaid Health Spending Account?

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Kibono offers employers flexibility in terms of how claims are paid for and reimbursed. Monthly accounts will receive monthly invoices for all employee claims approved during the month. Once the invoice is paid, Kibono will then reimburse employee claims. A Prepaid account allows employers to prefund their Kibono cash account using a credit card or bank account to enable same-day employee claim reimbursements. When your cash balance is low, Kibono will notify you for a top-up or simply setup auto-top ups with a valid credit card.

What forms of payment does Kibono accept?

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You can pay Kibono invoices or top-up your prepaid Kibono cash account using a valid credit card or bank account. Each transaction will incur a fee as outlined on our pricing page.

Does Kibono support automated payments?

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Yes, you can setup recurring payments using a valid credit card or bank account.

What is a reasonable benefit limit for each employee class?

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Kibono recommends consulting your accountant before finalising your annual spend limits associated with your Health Spending Account. It is common to attribute a value based on class type (e.g. Executives vs. Staff), a fixed percentage of annual salary or years of experience. Whichever method you choose, it must be deemed reasonable and accordance with the CRA rules for Health Spending Accounts. You cannot discriminate between employees, therefore the same benefit limit must be applied for all employees within a designated class. For example if Jeff and Jane are both Managers, you cannot have a Manager class and place Jeff and Jane in different classes with different annual spend limits.

Can I prorate employee benefits with a Health Spending Account?

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Yes, a Kibono Health Spending Account offers employers maximum flexibility to control their health plan to meet their exact needs. When adding a new employee, simply click ‘prorate’ and the annual limit for that employee class will automatically be adjusted based on their start date. This is commonly used for seasonal employees or for new plan members.

Can I suspend employee benefits with a Health Spending Account?

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Yes, a Kibono Health Spending Account is fully-featured to accomodate any business need. Simply click the employee and set them as ‘suspended’. You may select a specific end date or keep it open-ended. During this time the employee still has access to their account but cannot submit claims with service dates during the suspention period.

Can I set a future start-date for employee benefits with a Health Spending Account?

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Yes, a Kibono Health Spending Account offers employers a fully-featured platform effectively manage your health plan. Simply set a future start-date when adding the new employee and their benefits will not become active until the selected date. This means only claims with a service date on or after the selected start date will be eligible.

Does Kibono remit taxes collected for a Health Spending Account?

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Yes, Kibono collects and remits all required government taxes based on your business location. Ensure that your ‘billing address’ is up to date at all times as this is used to determine the appropriate provincial taxes to apply to your invoices. You can update your billing address for tax purposes in your employer profile.
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employee

I just received my welcome email, how do I begin submitting claims to my Health Spending Account?

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All instructions are included within your Kibono Welcome Email. Simply click ‘Activate Account’ and you will proceed through the account setup process. Please ensure you have a valid form of identification available for upload such as drivers license or passport as well as a valid debit card or bank account information so you can begin receiving claim reimbursements. If you are having any issues at all please don’t hesitate to contact us.

How do I access my Health Spending Account?

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Login to your Kibono Health Spending Account using the ‘Login’ button or by navigating directly to the login page here.

How do I submit a claim to my Health Spending Account?

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Simply login to your Kibono Health Spending Account and click ‘submit claim’. Enter the following information for your claim to be processed same-day.
  • Upload image of invoice and payment receipt
  • Enter the invoice amount and claim amount
  • Enter the receipt date and service date

Which medical expenses and practitioners are eligible with a Health Spending Account?

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A Kibono Health Spending Account covers all CRA-eligible medical expenses including prescription drugs, dental, orthodontics, glasses, laser-eye surgery, and extended medical costs from practitioners such as massage therapy or physiotherapy. Medical equipment such as surgical boots, prosthetics and CPAP machines are also eligible. For a complete list of all covered expenses click here

Can I make a claim on behalf of my spouse or dependents with a Health Spending Account?

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Yes, you can submit any CRA-eligible medical expense for you or your family with a Kibono Health Spending Account.

With a Kibono Health Spending Account can I claim amounts not covered under another insurance provider or by my spouse’s benefits plan?

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Yes, a Kibono Health Spending Account allows you to claim the un-covered portion from another benefits plan as long as it is a CRA-eligible medical expense. However, you can not submit and receive reimbursement for the same claim under two different benefit plans. This is considered 'double dipping' and is fraudulent.

When will my claims be reimbursed for my Health Spending Account?

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A Kibono Health Spending Account offers same-day claim approvals and reimbursements. All claims will be reviewed within 24hrs but reimbursement will depend upon the account type selected by your employer as well as the reimbursement method you have selected. You can find out when your claims will be reimbursed by checking the ‘Reimbursement Frequency’ on your employee dashboard which will indicate either Monthly or Same-Day.

Am I taxed on claim reimbursements from a Health Spending Account?

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No, all claim reimbursements are received tax-free using a Kibono Health Spending Account.

What happens to any unused benefits with my Health Spending Account?

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Any unused benefits with a Kibono Health Spending Account simply rollover into the next benefit period and are added to the annual balance. However, this is an option your employer may or may not have opted for. You can check whether your benefits will rollover by logging in to your employee dashboard where it will say ‘Benefits Rollover: Yes or No’. Remember that unused benefits can only be rolled over a maximum of one benefit period. For example; if your annual limit is $1,000 and after Year 1 you have $500 remaining; Year 2 will have $1,500 available to you. However, if at the end of Year 2 you still have $1,200 remaining, only $1,000 will be rolled into Year 3 as $200 relate to prior year already brought forward the maximum year.

Can I submit a claim for a previous benefit period with a Health Spending Account?

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Yes, a Kibono Health Spending Account allows employees to submit claims for a previous benefit period up until the end of the ‘Grace Period’ date assigned by their employer. The minimum Grace Period is 30 days and can extend to up to 90 days after a benefit period ends. For example, if your Grace Period is 30 Days with a calendar-year (Jan-Dec) benefit period; you have up until January 31 to submit any claims for the prior year, assuming you have unused amounts remaining. Any claims relating to prior period will only deduct from your prior period benefit balance. If no benefits remain from prior period, you are unable to submit any prior period claims. You can check your Grace Period and prior period benefits balance by logging into your employee dashboard.