Finding health insurance is a huge challenge for most small business owners. Most small firms don’t have enough employees to qualify for affordable group insurance rates, so often their employees — and their owners —have to make do without health insurance.

When you own and operate a home-based business, the challenge is even greater

But there is a solution. Read on to discover the answer to health insurance for home based business owners.

The secret to affordable health insurance for a home-based business owner is a Health Spending Account.

What is a Health Spending Account?

A Health Spending Account (or HSA) is a tax planning vehicle available to small business owners across Canada.  Based on Section 248 (1) of the Income Tax Act and CRA Bulletin IT 339R2, home-based business owners have been taking advantage of this tax break for over two decades.

Instead of paying for medical expenses personally, as an after-tax expense, small business owners can pay for medical expenses through their business, using before-tax dollars through a Health Spending Account.

By converting your expenses from personal to business, you effectively reduce the amount of tax you pay on the cost of your medical bills.  If you have a personal tax rate of 40% and spend about $3,000 a year on your family's medical expenses, your business will save about $2,000 in taxes.

Three key factors make a Health Spending Account the ultimate match for a home-based business owner:


A Health Spending Account typically has no premiums.

  1. Cost control is in your hands as opposed to the insurance company
  2. Reduce your taxes by writing off 100% of your medical costs through a Health Spending Account
  3. No deductibles, co-payments, or additional fees to join

Full Coverage

A Health Spending Account offers 100% coverage.

  1. Wide and deep range of eligible medical expenses
  2. A traditional insured plan limits access to benefits
  3. Inclusive definition of a dependant

Easy to use

Health Spending Accounts are perfect for a home-based business owner.

  1. The claim process is online and instant
  2. No complicated exclusions and conditions on your claims
  3. No medical underwriting

Interested in learning more about a Health Spending Account? If you're a home-based business owner, take a look at Olympia's Beginner's Guide to Health Spending Accounts.Download Beginner's HSA Guide for an incorporated individual


Write off 100% of your medical expenses

Are you an incorporated business owner with no employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation: 

Download the HSA Guide for Incorporated Individuals

Do you own a corporation with employees? Discover a tax deductible health and dental plan that has no premiums:

Download the HSA Guide for a Business with Staff

What's in this article

Subscribe to thge small buisness outlook

Subscribe to the blog