This is a question we get quite a bit here at myHSA, and while it may seem like they are the exact same thing, there are a few key differences between the two that we will touch on here in this article!

myHSA Does Not Provide Direct Billing to the Medical Practitioner for Services Rendered

This is the main difference between myHSA and a “regular” health insurance provider. While an insurer can cover the costs of insured services upfront without any further payment from the policyholder—unless there is a percentage of costs not covered—this is not the case with a Health Spending Account here at myHSA. myHSA provides you with a balance that can be claimed back for reimbursement of eligible services; however, these services must be paid for out of pocket first before the claimant can be reimbursed. There is no direct billing process.

myHSA Does Not Have Plan/Policy Numbers or Cards

The reason for this is directly related to the points outlined above! Given the claimant incurs the costs for services rendered upfront, as opposed to the direct billing method used by most primary health insurers, there is no need for a Plan or Policy number, or for a physical card with such information.

Well…If I Already Have Insurance, What Exactly is the Point of an HSA?

We’re glad you asked! HSAs are provided by many employers throughout Canada to cover the costs of services that may not be covered by your primary health insurance policy. Also, it is important to note that many insurance policies do not provide 100% coverage for certain health expenses. For example, many insurance policies provide coverage for services such as Vision and Dental expenses at only 80%. This means that the insurance provider will cover the cost of at least 80% of your Vision or Dental expense, but the policy holder will be expected to cover that 20% that is ineligible out of pocket.

Here is where your HSA comes in! Your HSA will act as your “second line of defence” and cover the costs of anything not covered by primary insurance. You are able to submit that 20% amount that was paid for out of pocket as a claim for reimbursement, as much of what is covered by “regular” insurance is also eligible through HSA! So essentially, the entire cost of your service is now completely covered. Pretty cool right?! 😎

It is also important to note that HSAs are completely employer provided! Typically, employees experience payroll deductions that go towards insurance premiums. In the case of an HSA, it is provided at completely no cost to the employee at all!