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Frequently Asked Questions

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What is the Medical Expense Account?

Designed by Greenfield Benefits Inc. for incorporated companies of all sizes, the Medical Expense Account provides a tax effective way to reimburse medical and dental expenses for your company's employees and their dependents.

Through the Medical Expense Account process, medical and dental reimbursement payments are provided as non-taxable benefits to the employee, and the payments qualify as a 100 percent tax-deduction to your corporation.

The Medical Expense Account can be integrated as a stand-alone plan or it can enhance your existing group or individual health and dental benefit coverage.



 

How does the Medical Expense Account Work?

After the initial set-up of the Medical Expense Account, the process of reimbursement is as easy as 1,2,3:

  1. The health/dental expense is paid first by the employee who completes a claim form, attaches the original receipt, and then submits it to their employer.
  2. The employer sends a cheque payable to "Greenfield Benefits Inc." for the total cost of the expense, plus a 10% administration fee.
  3. Greenfield Benefits adjudicates the claim and then sends a cheque payable to the employee for reimbursement.  A receipt is issued to the employer.

The initial set-up starts by online enrolment. Enrol Now.

Who is eligible to participate?

Only incorporated companies may register for the Medical Expense Account.

Within an incorporated company, the following four groups are eligible to participate: employees, spouses, dependent children and also any dependent family members.  Each class/division of employee can have a different annual reimbursement limit.  For example, Executives could have reimbursement levels at $10,000/year, Senior Management at $5,000/year, Full Time employees at $1,000/year, etc.  Within each employee classification you may also change the benefit amount according to the family status.

Once your company has enrolled in the Medical Expense Account you will be able to set-up these classes/divisions through the Administrative login.

Certain provisions within the Income Tax Act prohibit the self-employed or sole proprietors from participating in the Medical Expense Account.

What Expenses are Covered?

The Canada Customs and Revenue Agency permits a wide range of expenses including:

  • Dental expenses, including orthodontics and dentures
  • Out of country health claims, including surgeries
  • Physiotherapy
  • Private duty nursing
  • Laser eye surgery
  • Prescription drugs
  • Prescription glasses and contact lenses
  • Acupuncture

To view more examples of eligible expenses (PDF), Click Here...

What is the Enrolment Process?

Enrolling in the Medical Expense Account is as easy as 1,2,3...

  1. Complete the online contract by clicking on the Enrol Online link
  2.  Submit your payment.  The cost for setting up the plan is $300.00 (plus GST)
  3. Log into the Administrator's site and provide us with the details of your plan, including the classes of employees eligible to participate and annual reimbursement limits.

The estimated time for completing the entire enrollment process is approximately 10 minutes. Processing times will vary based on the number of employees enrolled in the plan.

What is Greenfield Benefits role?

Greenfield Benefits is responsible for the following with reference to the Medical Expense Account:

  1. The creation and administration of an indemnity contract for your company that complies with the Canadian Customs and Revenue Agency as a contract of insurance.
  2. Adjudication of claims (as an arms-length third party administrator) as they are submitted to ensure that the medical or dental expenses qualify under subsection 118.2(2) of the Income Tax Act.
  3. Maintenance of enrolment information and claims for auditing purposes.
How much does it cost to set-up a Medical Expense Account for my company?

There is a one time set-up fee of $300.00 (plus GST) to register your company.  After your company has registered there is an administration fee of 10% applied to all approved claims.  There are no on-going membership fees or dues.  Both the set-up fee and administration fees qualify as business deductions for your company.

What happens once I enrol?

You will be provided access to the Medical Expense Account Client Administration site, where you will provide us with the details of your plan, such as annual limits, eligible classes of employees, etc.  You can also view or print a copy of your Indemnity contract, as well as claims forms.

Do I have to be in good health to participate?

You current or past health condition does not affect your ability to enrol in the Medical Expense Account.  There is no requirement to submit any medical information when you enrol.

What medical/dental expenses are eligable for reimbursement under the Medical Expense Account?

Any claims that qualify as medical expenses under the Income Tax Act will be eligible for reimbursement under the Medical Expense Account. 

What makes the Medical Expense Account from Greenfield Benefits different?

Greenfield Benefits has contracted an international accounting services firm to conduct an extensive review of the operational guidelines of the Medical Expense Account.  In addition, the Indemnity Contract has been created by legal professionals to ensure compliance with CRA guidelines.  Every effort has been made to ensure that the Medical Expense Account has been properly structured to qualify as a Private Health Service Plan.  This due diligence is the very cornerstone of the Medical Expense Account, and assures that the integrity of the program remains the top priority.

What are some examples of common claims that can't be processed through the Medical Expense Account?

Some of the most common claims that are not eligible for reimbursement are the over-the-counter medications, herbal remedies and supplements, and provincial health care plan premiums.

Is this a national plan available to incorporated businesses in all provinces?

The Medical Expense Account is available to incorporate businesses throughout Canada.  However, due to various legislative changes surrounding the taxation of benefits, the Medical Expense Account is not available to businesses located in the province of Quebec.

 

Contact Information

Greenfield Benefits Inc.
Suite 206, 1117-1st Street SW
Calgary, AB  T2R 0T9

Toll-Free: (866) 262-4474
Local: (403) 262-4474
Fax: (403) 539-0868
www.greenfieldbenefits.com

info@greenfieldbenefits.com

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