A Health Spending Account is a CRA-approved benefit that allows incorporated businesses in Canada to convert after-tax personal medical expenses into pre-tax business deductions. The corporation allocates a set dollar amount per year for each eligible employee (including the business owner), and that amount can be used to reimburse any medical expense eligible under the Income Tax Act — including expenses not covered by a traditional health plan. HSAs offer complete flexibility: they can cover dental, vision, prescriptions, paramedical services, orthodontics, laser eye surgery, and hundreds of other eligible expenses. For self-employed individuals with a corporation, an HSA can be used alone or alongside a traditional health insurance plan to cover co-insurance, deductibles, and expenses exceeding plan maximums.