Coastal HSA vs myHSA: Comparing Two Canadian Health Spending Account Providers

Health Spending Accounts (HSAs) have become one of the most tax-efficient and flexible ways for Canadian business owners and employees to pay for medical and dental expenses. Instead of paying after-tax dollars for health costs, an HSA allows your company to pay the expense tax-free — and deduct it as a business expense.

Choosing the right Health Spending Account (HSA) provider can make a big difference for Canadian business owners looking to save on healthcare costs. With several options available, understanding how each platform operates helps you make an informed decision. In this guide, we’ll explore Coastal HSA vs myHSA to highlight their similarities, differences, and what makes each one a strong choice for tax-efficient employee health benefits.

Coastal HSA vs myHSA

Two popular Canadian providers are Coastal HSA and myHSA. While both offer the same core product, a CRA-compliant Health Spending Account, they differ in pricing, features, and how they work with clients.

This article breaks down the key similarities and differences of HSA vs myHSA so you can decide which provider is the best fit for your business.

What Is a Health Spending Account (HSA)?

A Health Spending Account (sometimes called a Private Health Services Plan, or PHSP) is an employee benefit that allows your company to reimburse medical, dental, vision, and paramedical expenses on a tax-free basis.

Here’s how it works:

Your company sets aside a defined annual allowance for each employee (for example, $1,500 per year).
Employees pay for eligible medical expenses and submit their receipts.
The HSA provider reviews and reimburses the employee.
The reimbursement is tax-free for the employee and 100% tax-deductible for the business.

Eligible expenses follow CRA guidelines and include things like prescriptions, dental work, physiotherapy, eyeglasses, and many more.

Coastal HSA vs myHSA: At a Glance

While Coastal HSA and myHSA both offer HSAs that operate under the same CRA rules, there are notable differences in cost, features, and distribution model.

Feature	Coastal HSA	myHSA
Core product	Health Spending Account (HSA / PHSP)	Health Spending Account (HSA / PHSP)
Claim submission	Digital app and online platform	Digital app and online platform
Administration fee	6% per claim	Typically around 10% (varies by advisor)
Distribution model	Works directly with business owners	Works primarily through insurance advisors
Extra features	Focused on HSA only	Optional add-ons: Wellness Spending Account (taxable) and insurance products
Target market	Small businesses and incorporated professionals looking for simplicity and lower cost	Businesses working with benefits advisors who want bundling options
Setup & ongoing fees	No setup fees, no monthly fees	Varies by advisor; some setup or minimum fees may apply
Claim turnaround time	Fast reimbursement (1–3 business days typical)	Small businesses and incorporated professionals are looking for simplicity and lower cost

1. Core Similarities

Both Coastal HSA vs myHSA:

Provide CRA-compliant Health Spending Accounts for incorporated businesses.
Offer easy-to-use apps and web portals for submitting claims and viewing balances.
Allow carry-forward options (typically 12 months for unused credits).
Deliver quick reimbursements via direct deposit.
Cover the same list of HSA vs myHSA CRA-eligible medical and dental expenses.

In short, both platforms make it simple for Canadian businesses to offer tax-efficient health benefits without traditional insurance plans.

2. Key Differences

a) Cost and Administration Fees

This is one of the biggest distinctions between the two providers.

Coastal HSA charges a flat 6% administration fee on approved claims — no setup costs, no monthly fees. It’s a straightforward “pay-as-you-go” model that keeps costs predictable and transparent.
myHSA typically charges around 10% in administrative fees, though pricing can vary depending on your advisor or broker arrangement.

If your business submits a significant volume of claims, that difference can add up. For example, on $10,000 of annual claims, the admin cost would be about $600 with Coastal versus $1,000 with myHSA.

b) Who They Work With

Coastal HSA works directly with business owners. You sign up directly with the provider, manage your plan online, and deal with their support team directly.
myHSA, on the other hand, operates primarily through insurance advisors and brokers. This structure makes it a great fit for companies already working with a benefits consultant who wants to integrate the HSA with other benefits or insurance products.

c) Add-On Benefits and Flexibility

myHSA offers a wider range of optional programs. These include Wellness Spending Accounts (WSA) — which reimburse taxable items like gym memberships or fitness classes — as well as add-ons for group insurance, employee assistance programs, and other insurance products.
Coastal HSA focuses solely on HSAs, keeping the model simple and cost-efficient. It doesn’t currently offer wellness or taxable accounts.

d) Plan Design and Reporting Tools

myHSA provides advanced reporting and customization tools, including advisor dashboards, HR integrations, and white-label options for brokers.
Coastal HSA provides straightforward, lightweight reporting tools suited for small businesses and owner-managed corporations.

e) Pricing Transparency

Because myHSA is distributed through brokers, fees can vary. Some advisors may bundle HSA administration with other services, which can be convenient but less transparent. Coastal HSA’s pricing is more standardized and directly published on its website.

3. When to Choose Coastal HSA

Coastal HSA is likely the better fit if you:

Are you a small or medium-sized business that wants a simple, affordable health benefit?
Prefer to work directly with your HSA provider without going through an advisor.
Want clear, predictable pricing (6% admin fee, no setup costs).
Don’t need wellness or insurance add-ons.

In short, it’s ideal for incorporated professionals, small business owners, and companies that want to offer tax-free health coverage at the lowest possible cost.

4. When to Choose myHSA

myHSA may be the better option if you:

Want to continue working with an insurance advisor or benefits consultant.
Want to combine an HSA with wellness accounts, taxable benefits, or group insurance plans.
Need advanced plan management tools.
Have a larger organization that values flexibility and customization over the lowest cost.

HSA’s ecosystem makes it a strong choice for companies looking for HSAs bundled with insurance products or wellness accounts.

5. Both are CRA-Compliant Coastal HSA vs myHSA and Trusted Providers

It’s worth emphasizing that both Coastal HSA and myHSA provide legitimate, CRA-compliant Private Health Services Plans (PHSPs).

Regardless of the provider, the tax treatment is the same:

Employer contributions are 100% tax-deductible.
Employee reimbursements are non-taxable.
Only eligible medical expenses (as defined by the CRA) can be reimbursed through an HSA.

That means the real difference isn’t in the tax outcome, it’s in the cost, features, and client experience.

Final Thoughts: HSA vs myHSA

At their core, Coastal HSA and myHSA offer the same fundamental Health Spending Account product, giving Canadian businesses a tax-efficient way to cover health and dental expenses.

The best choice depends on what matters most to you, Coastal HSA vs myHSA:

Choose Coastal HSA if you value simplicity, lower fees, and direct service.
Choose myHSA if you prefer more customization, add-ons, and broker support.

When it comes to choosing between Coastal HSA and myHSA, both providers deliver exceptional value to Canadian businesses seeking flexible, tax-efficient health benefits. While their core offerings are similar, the right choice depends on your company’s size, budget, and service preferences. Whether you prefer simplicity or advanced customization, Coastal HSA and myHSA both provide reliable solutions that help businesses support employee wellness while maximizing tax savings.

Either way, Coastal HSA vs myHSA shows that an HSA remains one of the most flexible and cost-effective employee benefits available in Canada, whether you’re a one-person corporation or a growing company.