Two common questions we often hear are:
“Can I claim health expenses that happened before my HSA was set up?”
“Can I backdate my HSA plan start date”
The short answer is: no, it’s not permitted by the CRA.
According to the Canada Revenue Agency (CRA), Health Spending Accounts can only cover eligible medical expenses incurred after the plan has been set up. This is because of the CRA’s “happening of which is uncertain” requirement.
Here’s what that means: an HSA is designed to reimburse future expenses—costs that may happen but are not yet certain. If the expense has already occurred before the HSA exists, it is no longer uncertain. Since the CRA only allows HSAs to cover expenses whose occurrence was uncertain at the time the plan was in place, past expenses are ineligible.
In short:
- You cannot backdate an HSA to cover expenses already incurred.
- Only medical expenses incurred after the HSA was created are eligible.
For full CRA guidance, see their medical expenses and HSA rules.
Key takeaway: Start your HSA before you anticipate needing to use it.