Health Spending Accounts
Hundreds of thousands of Canadians already use Health Spending Accounts. Discover why they’re becoming the preferred way to offer health benefits.
Health Spending Accounts
Why HSAs?
An HSA lets Canadian employers offer flexible, pay‑as‑you‑go health benefits without traditional insurance. Your team can get reimbursed tax‑free for hundreds of eligible health expenses, while you stay in control of your budget
- 100+ health expenses
- No insurance premiums
- No deductibles or copays
- Tax-free for employees
Canada Revenue Agency
HSA Eligibility
Our Health Spending Accounts are fully compliant with Canada Revenue Agency (CRA) guidelines. Employees must receive T4 income to be eligible. HSAs can be set up by the following types of Canadian businesses:
- Operating companies
- Nonprofits
- Sole proprietors*
- Partnerships*
- *with a full-time arm’s length employee
Employee Health Benefits
The HSA Health Wallet
Health Spending Accounts give employees the flexibility to cover the health expenses they value most, while helping employers keep costs predictable and manageable. With the Health Wallet, claims are easy to submit, reimbursements are fast, and spending is always transparent.
Plan Administrator
How It Works
Start by creating a Plan Administrator account, then set an annual HSA credit for each employee. Employees submit eligible health expenses through their Health Wallet, and claims are reviewed and reimbursed.
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 set at 20% of that income; for example, $80,000 in T4 income allows a maximum annual HSA of $16,000.
2. Business Structure
Available to incorporated businesses with active income, nonprofits, and sole proprietors with at least one full-time arm’s-length employee.
3. Health Expenses
All expenses on the Coastal HSA Eligible Health Expenses List qualify for reimbursement.
4. Claim Date Eligibility
Coverage begins on your plan start date. Only expenses incurred on or after that date are eligible, and plan start dates cannot be backdated under CRA rules.
5. Allocation
HSA funds are distributed either quarterly (January 1, April 1, July 1, October 1) or annually (January 1).
6. Fairness
Employees performing the same or similar duties must receive the same HSA amount.
7. Claim Deadline
Expenses must be submitted no later than March 31 of the following year and reimbursed solely from that plan year’s credits.
8. Rollover
Unused HSA credits roll over on January 1 and remain available for 12 months before they expire.
Getting Started
Flexible health benefits
start here
Explore our plans below for a firsthand look at our HSA Health Wallets.