Pay for what your team actually claims. Keep the rest.
A CRA-approved Health Spending Account can be an alternative to traditional premium-based group benefits or work alongside them. You set the benefit limit, plan members choose the eligible health expenses that matter to them, and you only pay when claims are submitted.
The math behind group insurance doesn't work for most SMBs.
Three numbers worth knowing before your next renewal. Together they explain why traditional group insurance feels expensive. And why a Health Spending Account changes the math.
Premiums bundle commissions, admin, profit and premium tax into a fixed price, claimed or not. An HSA has no premium; the admin fee applies only to claims paid.
On average, plan members use about two-thirds of their health spending account. Under insurance that unused premium is gone; with an HSA, you only pay for what's claimed.
Canadian medical-plan costs are set to rise 8.3% in 2026, on top of 7.4% in 2025, and renewal increases compound year over year.
Three phases. One plan year.
A Health Spending Account isn't insurance. It's a CRA-approved spending account your business funds. You deposit the budget, plan members claim eligible expenses, and you only pay for what's claimed.
You set the budget
Choose an annual limit per plan member, anywhere from $250 to $15,000. Set it by employee class (executives, full-time, part-time). The amount is up to you; we typically suggest keeping your lowest class limit within 1:10 of your highest. No medical underwriting.
Plan members claim what they need
Prescriptions, dental, vision, paramedical, mental health. All reimbursed tax-free under the Private Health Services Plan rules (ITA s. 6(1)(a)(i); s. 118.2(2)). They submit by app or online portal; once funding is received, reimbursement lands typically within 48 to 72 hours.
You only pay for what's claimed
There's no premium. You're billed for actual claims, nothing more. Unused amounts roll over to the next plan year by default, or reset each year if you prefer.
Set different limits for different roles.
Classifications are CRA-permitted as long as every employee in a class gets the same benefit level. The At average usage column shows a typical year, with plan members claiming 66% of their allowance.
* Max monthly cost assumes every plan member claims their full annual limit. The average-usage column assumes 66% of the limit is claimed, the average reported by the 2025 Benefits Canada Healthcare Survey. Your Olympia cost is actual claims plus the 8% admin fee and the $99/yr group fee; the $335 one-time setup and $40 per added plan member are separate. Applicable taxes are extra.
Monday morning after rollout.
Your plan members photograph a receipt and submit it in the Olympia app or online portal. Once funding is received, the money lands in their bank account typically within 48 to 72 hours. No claim forms. And if they carry other coverage, Olympia is always the last payer: an expense can go to an insured plan first, with the remainder submitted through the Olympia plan.
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Attach a receipt. Snap a photo or upload a PDF.
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Submit in 30 seconds. Pick the family member, hit send.
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Money in 48 to 72 hours. Paid straight to their bank by direct deposit.
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See the balance. Always know what's left in the account.
HSA vs. group insurance, line by line.
Most brokers won't show you this comparison because the math doesn't favour them. Here it is, unedited.
From sign-up to first claim.
No medical underwriting, no carrier negotiation, no broker theatre. The longest part is your team setting up direct deposit.
Sign up online
Complete the online application. Your plan is set up as soon as you finish.
Plan design
Choose your plan member classifications and the annual limit for each.
Plan member onboarding
We send a welcome email to your team. They sign in on the app or online portal, set up direct deposit, and are ready to claim.
First claims paid
Your plan members start submitting; reimbursements land typically within 48 to 72 hours once funding is received. You get a live admin dashboard.
Eight questions every CFO asks.
01 Is a Health Spending Account actually CRA-approved? +
Yes. An HSA is recognized in the Income Tax Act as a Private Health Services Plan. It is defined in s. 248(1), with reimbursements tax-free to the employee under s. 6(1)(a)(i), covering the medical expenses listed in s. 118.2(2). CRA's interpretive guidance is in CRA Interpretation Bulletin IT-339R2 (archived). Olympia has administered PHSPs since 1997 with a track record of CRA-compliant adjudication. We provide audit-ready documentation for every claim.
02 What if my team has a high-claim year and we go over budget? +
You don't. The annual limit per plan member is the cap. Claims above that limit aren't paid. That's the cost certainty: your maximum exposure is the budget you set, never a dollar more.
03 Is this enough coverage on its own, or do we still need insurance? +
Many SMBs use an HSA in place of traditional Health & Dental; others run it alongside their existing plan. For catastrophic risk (long-term disability, critical illness, life), many businesses add a separate insured policy through a licensed insurance advisor. Olympia doesn't offer, administer, or quote those products: the HSA covers day-to-day medical and dental expenses.
04 How is this different from a wellness account or lifestyle spending account? +
An HSA covers eligible medical expenses defined under CRA Section 118.2 and provides tax-free reimbursement. A Wellness Spending Account offers greater flexibility for a wide range of wellness and lifestyle expenses, such as fitness, recreation, personal development, and well-being programs. WSA reimbursements are taxable to the plan member. Employers can add a WSA to their HSA Group plan to offer both.
05 What about pre-existing conditions or older plan members? +
No medical underwriting. Every employee in the eligible class gets the same limit regardless of age, health history, or claim history. This is one of the biggest reasons SMBs with mature teams choose an HSA.
06 Can we add family members? +
Yes. CRA allows the plan member, their spouse, and their dependants to claim against the account. You don't pay extra to add family. It comes from the plan member's annual limit.
07 What happens to unused dollars at year end? +
By default, unused amounts roll over to the next plan year. You can choose a reset instead, so each year starts fresh at the full limit. Either way, you only pay for claims actually submitted. Money you've deposited but not used stays in your funding account, where you can leave it for future claims or withdraw it. Plans can also include a run-off period (a window to submit claims after year end). The exact terms are set in your plan document. We'll help you decide which makes sense for your team.
08 How do you make money if there's no premium? +
8% admin fee on adjudicated claims. If we reimburse $80,000 in eligible claims to your plan members, we earn $6,400. On the Group plan a $99/yr platform fee, a one-time $335 setup and $40 per added plan member also apply; there are no monthly minimums. Our incentive matches yours: efficient adjudication of legitimate claims.
Run the numbers for your team.
Two ways to start: do the math yourself, or sign up now.