Health Spending Accounts
Hundreds of thousands of Canadians already use Health Spending Accounts. See why they’re becoming the preferred way to offer health benefits.
HSA Health Wallet
HSA Plan Structure .
Guidelines and Rules.
A Health Spending Account (HSA) is a Private Health Services Plan (PHSP) recognized by the CRA. It must be employer-funded and provided on a reasonable basis to employees.
1. T4 Income
Employees must receive T4 employment income. HSA limits are based on that income.
2. Business Structure
Available to incorporated businesses with active income, or sole proprietors who employ at least one arm’s-length employee.
3. Health Expenses
Only expenses listed on the Coastal HSA Eligible Health Expenses list qualify.
4. Claim Date Eligibility
Your coverage starts on your plan start date. Only expenses incurred on or after that date are eligible.
5. Quarterly Allocation
HSA funds are distributed to employees quarterly on Jan 1, Apr 1, Jul 1, and Oct 1.
6. Fairness
Employees performing the same or similar duties must receive the same HSA amount.
7. Claim Deadline
Expenses must be from the plan year, submitted by March 1 of the following year, and reimbursed only from that year’s credits.
8. Rollover
Unused HSA credits roll over on January 1 and remain available for 12 months before expiring.
Health Spending Accounts
Why HSAs?
Traditional group health insurance can be complex and expensive. Health Spending Accounts (HSAs) provide a flexible and affordable alternative for employee benefits, making them a popular choice among small businesses. Here’s why they are so widely adopted.
- 100+ eligible health expenses
- No insurance premiums
- Counts as deductible business expenses
- Provides coverage for dependents
- No deductibles or copays
- Tax-free for employees and owner-employees
Canada Revenue Agency
HSA Eligibility
Our Health Spending Accounts fully comply with Canada Revenue Agency (CRA) guidelines. Employees must have T4 income to be eligible for an HSA. The following types of Canadian businesses can set up an HSA:
- Operating companies
- Nonprofits
- Sole proprietors*
- Partnerships*
- *with a full-time arm’s length employee
Choosing Coastal HSA
The HSA Health Wallet
Our digital Health Wallets at Coastal HSA put predictable spending within reach for employers. Simply allocate a set dollar amount of health credits to each employee’s Health Wallet. From there, employees can submit their receipts through our easy-to-use platform to receive their reimbursements.
Getting Started
Flexible health benefits
start here
Explore our plans below for a firsthand look at our HSA Health Wallets.