HEALTH & WELLNESS BENEFITS IN CANADA
Insurance can leave eligible expenses unpaid. An HSA gives your team a flexible allowance to help cover that gap. Compare what each option pays for, the protection you need to keep, and the total cost to your business.
DIFFERENT TOOLS. A PLAN THAT FITS.
Insurance provides the protection in your policy. Spending accounts give employees an allowance to use across eligible expenses.
| What matters | Group health & dental insurance | Health Spending Account | Wellness Spending Account |
|---|---|---|---|
| What it pays for | Services covered by the policy, subject to its limits and exclusions. | Eligible medical, dental and vision expenses. | Wellness categories your company selects, such as fitness. |
| How you budget | Premiums for the coverage you select. | An employee allowance plus administration fees and taxes. | An employee allowance plus administration fees and taxes. |
| Employee choice | Within the policy’s categories and limits. | How to use their available balance across eligible healthcare. | How to use their available balance within your wellness categories. |
| Large or unexpected costs | May provide protection beyond an individual spending allowance, within policy terms. | Limited to the employee’s available allowance. | Limited to the employee’s available allowance. |
| Federal employee tax | Qualifying employer-paid health and dental benefits are non-taxable. | Benefits under a qualifying HSA are non-taxable. | A taxable employee benefit. |
Québec treats employer-paid private health plan coverage as a provincial taxable benefit. CRA guidance · Revenu Québec guidance · Understanding health insurance
WITH OR WITHOUT A GROUP PLAN
Bring your existing coverage and priorities. We’ll work through the spending-account options.
COMPARE YOUR OPTIONS
Bring your current insurance costs, employee count and benefit budget. Aya can prepare a quote for the account and funding approach you are considering. Compare the benefits, fees and coverage you would retain before making a change.
Get direct pricingTHE AYA PREPAID VISA CARD
Pay for eligible care with your funded Aya card at designated merchants that accept Visa, including internationally.
Available funds, eligible expenses, merchant restrictions and the cardholder agreement apply. Keep and upload your receipts. International card acceptance is separate from travel medical insurance.
EXECUTIVES & INCORPORATED BUSINESS OWNERS
Set HSA and WSA allocations for defined employee classes, including executives. Give people choice within their allowance, with a funded card for eligible care in Canada and abroad.
Use objective class criteria and consistent allocations within each class. Build the plan around the roles and needs of your team.
Explore plans for your teamA qualifying HSA lets your company pay eligible healthcare expenses as an employee benefit. Qualifying employer costs are deductible business expenses; eligible benefits are non-taxable federally.
Owner-managers who are employees of incorporated businesses can participate. The benefit must be provided in their capacity as an employee, with a properly structured plan.
Québec provincial tax treatment differs. Confirm your company’s eligibility and deductions with your accountant. Federal health-benefit tax treatment.
Both can qualify for favourable health-benefit tax treatment. Aya’s HSA adds flexible spending within an employer-set budget. A WSA expands the benefits you can offer, with taxable employee benefits.
PUTTING YOUR PLAN TO USE
No problem! Eligible expenses go to the primary group benefits plan first, then to a partner’s plan if applicable. Any unpaid portions can then be submitted to Aya’s HSA/WSA for comprehensive coverage.
Only the eligible unpaid amount can be claimed through Aya, within the employee’s available balance. Keep the other insurer’s claim statement.
Yes, an eligible corporation can use company funds to provide qualifying healthcare benefits to an owner-manager who is an employee. This pays eligible health expenses through an employment benefit; it is not an unrestricted tax-free withdrawal of retained earnings.
Benefits provided because you own shares can be taxable shareholder benefits and non-deductible to the company. See the CRA’s employee and shareholder distinction.
The rules differ. A sole proprietor with no arm’s-length employees does not qualify for an HSA deduction under the CRA’s stated guidance. Incorporated businesses, including eligible shareholder-employees, can participate. Read the CRA’s HSA guidance.
YOUR PLAN STARTS HERE
Bring your renewal quote, employee count and benefit priorities. We’ll help you compare spending-account options and confirm your plan and pricing.
