Coastal HSA Services Inc.
Terms and Conditions

1. Definitions

• “Services” refer to the services provided by Coastal HSA as described in this Agreement.
• “Organization” refers to the business or entity entering into this Agreement.
• “Coastal HSA” refers to Coastal HSA Services Inc.

2. Services Provided

Coastal HSA offers a platform for Canadian businesses and organizations to administer employee health benefits. This includes the management of Health Spending Accounts (HSAs), claim adjudication, and reimbursement processing, all in accordance with this Agreement.

3. Appointment as Administrator

The Organization hereby appoints Coastal HSA as the administrator of its Health Spending Account plan. Coastal HSA agrees to provide administration and claims services per the terms and conditions outlined herein.

4. Technology Access

Coastal HSA will provide the Organization with access to its HSA platform and client services portal. Access is granted solely for the purpose of utilizing the Services during the term of this Agreement.

5. Plan Establishment

Pursuant to Section 248(1) of the Canadian Income Tax Act, Coastal HSA facilitates the establishment of a Private Health Services Plan (PHSP), commonly referred to as a Health Spending Account (HSA). Coastal HSA is responsible for adjudicating claims to ensure they comply with Canada Revenue Agency (CRA) eligibility requirements. The Organization is required to remit the total claim amount, including any applicable taxes and the administration fee. Upon receipt of such payment, Coastal HSA will reimburse employees up to their allocated HSA balance in accordance with the terms of the Plan.

6. Eligibility

Eligible entities include corporations and non-profit organizations. Sole proprietors and partnerships must have at least one full-time, arm’s-length employee to qualify. HSAs cannot be used by shareholder/owners unless they also earn T4 income as employees.

7. Claimable Expenses

Only medical expenses eligible under subsections 118.2(2) and 248(1) of the Canadian Income Tax Act are reimbursable.

8. Currency

All transactions and reimbursements will be processed in Canadian dollars (CAD).

9. Plan Members

All eligible employees added by the Organization will be considered plan members under the HSA.

10. Plan Limits

Employee may receive a different annual HSA limit, as determined by the Organization. Limits should be reasonable relative to the employee’s role and income, typically between 2%–20% of annual T4 salary. The Organization, as Plan Administrator, is responsible for establishing HSA classes based on employee roles. Employees with the same role, responsibilities, and seniority must receive the same HSA amount.

11. Plan Term and Renewal

The plan begins on the date you add your first employee to your Coastal HSA account, or on a future plan start date if one is selected when adding an employee. Only expenses incurred on or after the plan start date are eligible. HSA plans cannot be backdated per CRA rules. The plan will automatically renew on January 1 each year unless terminated.

12. Employee Shareholders

Employee-shareholders may participate in the plan, provided their benefits are comparable to those of non-shareholder employees in similar roles. Participation must be offered to all qualifying employees.

13. Claim Adjudication and Reporting

Coastal HSA will adjudicate claims and issue reimbursements to employees for eligible expenses.

14. Record Accuracy

Employees must submit electronic receipts for all claims. Coastal HSA will use reasonable judgment to verify the authenticity and completeness of documents. It is not liable for claims based on fraudulent or altered documents.

15. Standard of Care

Coastal HSA agrees to provide the Services using reasonable care and diligence, employing qualified personnel to fulfill its responsibilities as administrator.

16. Confidentiality and Privacy

Coastal HSA treats all employee and medical information as confidential and manages such data in accordance with its privacy policy, applicable laws, and industry standards.

17. Information from the Organization

The Organization shall provide Coastal HSA with all information necessary to fulfill its obligations, including the allocation of plan credits and basic employee information. The Plan Administrator and the Organization are solely responsible for ensuring that all T4 income declarations submitted when creating HSAs on the platform are accurate. Coastal HSA is not liable for any consequences arising from inaccurate or false information, including the potential disqualification of HSAs.

18. Legal and Financial Responsibility

Coastal HSA does not underwrite or insure the plan. The Organization remains legally and financially responsible for all benefit payments and indemnifies Coastal HSA against any resulting liabilities, except in cases of Coastal HSA’s negligence or willful misconduct.

By completing the Pre-Authorized Debit agreement, you authorize Coastal HSA to withdraw funds up to your organization’s total allocated HSA health credit. If there are insufficient funds at the time of withdrawal, a $30 NSF (Non-Sufficient Funds) fee will be applied. This fee will be charged to your organization.

19. Plan Amendments

The Organization is responsible for making updates to the plan, such as modifying plan limits or adding/removing employees.

20. Service Fees

A 7% administration fee will be applied to each claim processed under the Services.

21. Taxes on Health Spending Accounts (HSAs)

Taxes are calculated, collected, and remitted based on the employee’s province of residence.

BC, Alberta, Saskatchewan, Manitoba, Yukon, NWT, Nunavut

• 5% GST on the admin fee

New Brunswick, PEI, Newfoundland & Labrador

• 15% HST on the admin fee

Nova Scotia

• 14% HST on the admin fee

Ontario

• 2% PPT on the claim + admin fee
• 8% RST on the claim
• 13% HST on the admin fee

22. Termination

The Organization may terminate this Agreement with 30 day written notice. Coastal HSA may terminate immediately for cause or if the Organization breaches any terms. Termination is automatic if continuation of the Agreement becomes unlawful.

23. Post-Termination

The Agreement remains in effect until final payments are made. Claims submitted after the termination date will not be processed.

24. Notices

All notices must be delivered by email to support@coastalhsa.ca and will be considered delivered once received.

25. User Accounts

To access the Services, the Organization must create an account. The Organization is responsible for securing account credentials and all activities conducted under the account. Coastal HSA reserves the right to suspend or terminate accounts for violations of this Agreement or applicable law.

26. User Data

Coastal HSA collects only the minimum necessary data to fulfill CRA requirements and process claims. By using the Services, you consent to Coastal HSA’s data collection and use as described.

27. Intellectual Property

All rights to the Services, including software and related intellectual property, remain with Coastal HSA. The Organization may only use the Services as expressly permitted under this Agreement.

28. Confidential Information

All information exchanged under this Agreement is confidential. Neither party shall disclose such information to third parties without written consent, except where required by law or to fulfill contractual obligations.

29. Representations and Warranties

Coastal HSA warrants that it has the expertise to deliver the Services in a professional manner. The platform is provided “as is” without any warranties, express or implied. Coastal HSA does not guarantee uninterrupted or error-free service.

30. Indemnification

The Organization agrees to indemnify and hold Coastal HSA harmless from any claims, losses, or expenses arising from the Organization’s use of the Services or breach of this Agreement.

31. Governing Law

This Agreement is governed by the laws of the Province of British Columbia, Canada.

32. Entire Agreement

This document constitutes the full and complete agreement between the parties and supersedes all prior discussions, communications, and agreements, whether written or oral.

33. Amendments

This Agreement may only be modified in writing and signed by both parties.

34. Acceptance

By using the Services, the Organization agrees to these Terms and Conditions. If you do not accept these terms, you may not use the Services. I confirm I am authorized to enrol this Organization.