Coastal HSA vs myHSA
Two popular Canadian HSA providers are Coastal HSA and myHSA. While both offer the same core HSA product, they differ in pricing, features, and how they work with clients.
This article breaks down the key similarities and differences of Coastal HSA vs myHSA so you can decide which provider is the best fit for your business.
What Is a Health Spending Account (HSA)?
Let’s start with the basics. A Health Spending Account (sometimes called a Private Health Services Plan, or PHSP) is an employee benefit that allows businesses 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, $2,500 per year).
- Employees pay for eligible medical expenses and submit their receipts.
- The HSA provider adjudicates the claim 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 much 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 & Medium businesses and incorporated professionals looking for simplicity | Businesses working with benefits advisors who want bundling options |
| Setup & ongoing fees | $50 setup fee, no monthly fees | Varies by advisor; some setup or minimum fees may apply |
| Claim turnaround time | Fast reimbursement (1–4 business days) | Fast reimbursement (1–3 business days) |
1. Core Similarities
Both Coastal HSA vs myHSA:
- Provide CRA-compliant Health Spending Accounts for 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.
- Covers the same list of 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 — and a $50 setup fee, 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. They also have a lot more customization options.
- 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 benefits
- Prefer to work directly with your HSA provider without going through an advisor.
- Want clear, predictable pricing (6% admin fee, $50 setup fee).
- Don’t need wellness or insurance add-ons.
In short, it’s ideal for incorporated professionals, small and medium size 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.
myHSA’s ecosystem makes it a strong choice for companies looking for HSAs bundled with insurance products or wellness accounts.
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.
Read More: A Journey Through The History Of Health Spending Accounts In Canada
