It’s that time when health insurance deadlines are approaching along with the end of the year. This is our notice of deadlines and changes that will occur when we shift to another year. 

Spending account reminders and deadlines

Most spending accounts will reset with the calendar year, so on December 31st. Be sure to check with your provider if you are unsure, though. Any unused balances of the previous year will be either forfeited or carried forward to be used the following year. 

Current year claims

Any claims that were incurred in the current year should be submitted for reimbursement. There is usually a grace period after December 31st which allows plan members to submit claims from the previous year. However, not all plans have this option so you need to check with your plan sponsor if there is a grace period to submit claims and how long the grace period is for submissions.

Remaining balance

Not everyone will have eligible expenses up to the total allocation amount. This is where balance carry-forward can help. It allows employees who do not spend their total allotment to carry-forward unused amounts and use them towards claims in the next calendar year. Any claims submitted the following year would come out of the previous year’s amount first. 

Health and dental premiums

Sometimes even with balance carry-forward, employees may find they are not using the full allotment each year. When employees pay 50% of their health and dental premiums as a cost sharing arrangement, they can submit those premiums to their HSA. 

This is useful for employees who aren’t keen on having to pay those premiums if they are not utilizing the health and dental benefits. This way, they have the coverage for a catastrophic event, but aren’t paying out-of-pocket for unused benefits. 

Health and Dental insurance deadlines and reminders

The insurance deadlines for health and dental are similar to spending accounts, in that they usually coincide with the calendar year. And that there is usually a grace period after the year ends in which to submit claims.

It is always best to confirm with your insurance provider how long you have to submit claims from the previous year. No matter the length of time allotted to you, claims must be submitted prior to that deadline. 

Annual maximums reset

On January 1st of each year plan member’s annual maximums will be reset. This means that plan members who have used the full amount for certain services or medical supplies can start claiming again or resume treatment.

Depending on the benefits plan, certain items, like hearing aids, could be tied to a frequency limit instead of an annual maximum and such, the maximum does not reset each year. Instead, it resets after a certain number of years or months has elapsed since the previous purchase. 

New tax reporting obligations for the Canadian Dental Care Plan (CDCP)

When the government of Canada released the 2023 budget, they included the new Canadian Dental Care Plan (CDCP) with a new tax-reporting obligation. Employers are required to report on a T4 or other tax slip whether or not their employees or dependents had access to dental care insurance. This will start with the 2023 tax-reporting cycle. 

In order to accommodate this change, a new box has been added to the forms. Employers must enter a code to indicate whether dental care insurance was available to their employees and/or dependents in 2023. Employees that have a HSA are considered to have access to dental care. Please speak with your tax authority if you have any questions or concerns.

Here is a breakdown of the codes:

  • Code 1 – No access to any dental care insurance, or coverage of dental services of any kind.
  • Code 2 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee.
  • Code 3 – Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse and dependents.
  • Code 4 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse.
  • Code 5 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependents.