Health Spending Accounts (HSA) are Self-insured Private Health Services Plan (PHSP) benefits arranged by Employers for their Employees residing in Canada. Private Health Services Plans are described in Canada Revenue Agency (CRA) Income Tax Bulletin IT-339R2[1] "Meaning of PHSP" for Health and Dental Care Expenses described in Income Tax Bulletin IT-519R2[2] "Medical Expenses".
Health Spending Accounts can be utilized to 1. supplement Insured Private Health Services Plans, or implemented as 2. "stand-alone" plans instead of Insured Private Health Services Plans. Private Health Services Plans (which may take the form of Health Spending Accounts) may form part of a Health and Welfare Trust (see IT-85R2)[3] or Flexible Employee Benefit Program (see IT-529).[4]