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General questions:
A Health Spending Account (HSA) is a flexible, tax-effective health benefits plan for Canadian businesses. It allows employers to allocate a set amount of tax-free health credits to their employees, who can then use those funds to cover a wide range of eligible medical expenses — including dental, vision care, prescription drugs, and over 100 other CRA-approved health services.
HSAs cover a wide range of health-related expenses including dental care, vision, prescriptions, physiotherapy, mental health services, and more. Coastal HSA follows CRA guidelines. [See a full list of eligible expenses here → https://www.coastalhsa.ca/a-health-spending-account-hsa/]
Canadian corporations, non-profit organizations as well as sole proprietorships and partnerships with at least one arm’s length employee.
Yes, the Coastal HSA Health Wallet is a version of a Health Spending Account.
The HSA Wallet is currently available to businesses and nonprofits in British Columbia, Alberta, Saskatchewan, Manitoba, Northwest Territories, Nunavut and the Yukon.
We are transforming employee health benefits for Canadians through the use of Health Spending Accounts (HSAs). Instead of paying premiums, employers allocate flexible health credits to each employee's health wallet. Traditional insurance-based employee health benefit plans can be complex and full of fees. Our Health Wallet, based on HSAs, streamlines health benefits, making them user-friendly, flexible, and cost-effective.
A Health Spending Account (HSA) lets Canadian employers provide tax-free health and dental benefits to their employees. Employers allocate a fixed dollar amount to each employee annually, and employees are reimbursed for eligible health expenses. It’s simple, flexible, and CRA-approved.
Healthcare Providers can sign up for direct billing and get paid directly from their client's HSA. Create a free account by clicking "Log in". We don't charge healthcare providers any fees and it only takes about 30 seconds to submit a claim once the account is setup.
No. HSA reimbursements are 100% tax-free for employees and tax-deductible for the business, making it one of the most efficient ways to offer health benefits in Canada.
Yes! Even small corporations and nonprofits can offer HSAs to employees. Sole proprietors with at least one arm’s-length employee may also qualify. It’s ideal for businesses looking for affordable, flexible benefits without traditional insurance.
Employees:
January 1st of every year.
Quarterly. For example, if you have a credit of $4000 per year, you’ll receive a $1000 credit on January 1st, April 1st, July 1st and October 1st.
Yes! Dental care and vision expenses are some of the most commonly reimbursed HSA claims. This includes cleanings, fillings, eye exams, contact lenses, glasses, and more.
Any unused funds at the end of the calendar year will roll over into the following year. However, they must be claimed by the end of that second year—otherwise, they will be forfeited in accordance with Canada Revenue Agency (CRA) rules.
First, make a claim to your spouse's insurance based plan. Typically, they will send you an explanation of benefits to show what was not covered. Simply claim the uncovered amount under your Health Wallet.
Yes, if your healthcare provider signs up for a free Coastal HSA Direct account they can submit a claim on your behalf and we can pay them directly.
The claim deadline is March 1 following the year in which the expense was incurred. For example, if you have expenses in 2020, you must submit all yours claim by March 1, 2021. However, we encourage users to submit claims within 4 weeks of the purchase or service date if possible.
Yes, as long as the expense is on the approved list of eligible expenses. You’ll need to provide a screenshot from your credit card showing the exact amount you paid in Canadian funds. We do not exchange any currencies.
Since it’s a benefit of your employment, it will become void after your last day of work.
No, gym memberships and bikes are not eligible expenses under a Health Spending Account. These items are considered general wellness or personal expenses and are not covered under CRA guidelines.
A dependent must meet one of following criteria:
- Spouse or common-law partner per CRA definition.
- You or your spouse’s or common-law partner’s child under 21.
- You or your spouse’s or common-law partner’s child between 21-26 and studying full time at a recognized education institution.
- A person under 21 for whom you or your spouse or common-law partner is the primary caregiver and main financial support.
- You or your spouse’s or common-law partner’s child, or other close relative who is incapable of financial self-support because of a diagnosed disability. They must be under 65, live in the same household, and be primarily dependent on you or your spouse for financial support.
Plan Admins:
Traditional insurance plans come with fixed premiums, exclusions, and usage restrictions. An HSA, on the other hand, gives employees a flexible spending account they can use for any CRA-eligible health expense—no deductibles, no co-pays, and no category limits.
There’s no CRA-set limit, but contribution amounts should be reasonable and consistent across employee classes. Coastal typically recommends $1,000–$15,000 annually depending on role and seniority.
At Coastal HSA, there are no setup or annual fees. We charge a simple 6% admin fee (plus GST) on claims paid. This fee is fully deductible as a business expense.
No, only receipts after the plan activation date can be submitted.
Yes, it's $1000 health credits annually per user.
Employee Benefit Tax Deductions
The claim deadline is March 1 following the year in which the expense was incurred. For example, if you have expenses in 2020, you must submit all yours claim by March 1, 2021. However, we encourage users to submit claims within 4 weeks of the purchase or service date if possible.
Yes, but the shareholder must be an active employee and have T4 income.
When an employee leaves your organization, it’s important to deactivate their Health Wallet promptly. As a plan administrator, you can log into your Coastal HSA admin dashboard and remove the employee. This will stop any further fund allocations and prevent new claims.
