We’re pleased to introduce your new Healthcare Spending Account (HCSA), an added layer of coverage designed to give you and your family more flexibility with less out-of-pocket expenses. The HCSA is effective April 1, 2026, on the Active Member Plan.

Over the next four weeks, the OPPA will be sending a series of emails to walk you through the program step-by-step. Each message will break down the HCSA plan in simple terms, helping you understand how it works and how to make the most of it.

This first email provides an overview and covers the basics to help you get started. The next will include more information on claims submission for HCSA, followed by administration of the HCSA, and we will end with a summary putting it all together.

What is a Healthcare Spending Account?

Think of your HCSA as a top-up account for your health and dental benefits. Your HCSA works alongside your regular benefits plan through Canada Life. This means you must be enrolled in the health and dental plan to be eligible.

When the base plan (Canada Life 44501) doesn’t cover the full cost of a service or supply you can have some or all of it covered through your HCSA – as long as you have credits available and it is an eligible expense as per CRA.

Example:

The cost of a drug is $100. You wish to use the HCSA to pay for all out of pocket expenses.    

  • The plan covers 90% of the eligible expense through the drug card, which is $90 ($100 x .90)
  • At the pharmacy you are charged for the remaining $10 (no change to claiming method)
  • You submit the $10 expense to be paid through the HCSA using the My Canada Life at Work app or using a paper claim.
  • Canada Life will reimburse you $10
  • Your HCSA balance is reduced by $10

How Does It Work?

Each year, you are allocated a dollar amount that you can use to pay for eligible health, dental or vision expenses incurred in that calendar year. You decide how and when you want to spend it!

To bring this new benefit to you as soon as possible, we agreed to a shortened first year with the first allocation given to you on April 1st.  Subsequent allocations will be provided annually on January 1st with escalating entitlements negotiated for the next two years. The allocations are as follows:

  • April 1, 2026: $650
  • January 1, 2027: $800
  • January 1, 2028: $1,000

What Can it Cover?

Your HCSA can help pay for expenses your base plan does not cover in full or doesn’t cover at all such as:

  • Practitioner claims (massage, physiotherapy, etc.) over the maximum
  • Prescription drug co-pay
  • Glasses/contacts over the maximum
  • Physiotherapy
  • Chiropractic treatment
  • Medical supplies & services
  • Dental costs that exceed your yearly maximum
  • …and more!

Eligible expenses must qualify under Canada Revenue Agency medical expense rules. Click here for more information.

Who Can Use It?

The definition of dependent is broader under the HCSA coverage:

  • You
  • Your spouse
  • Additional dependents who are financially dependent on you, that you claim as dependents on your income tax

Next week, we’ll walk you through Claim Submission – including how Balance Carry Forward works and important claim deadlines to keep in mind.