­­­How Business Owners Can Optimize Their Health Benefits

Welcome to this edition of the Millennial Money Canada Newsletter!

In this issue, we’re diving deep into health spending solutions for Canadian business owners and employees. If you're an incorporated professional, a small business owner, or managing a larger enterprise, you’ll want to understand how MyHSA is revolutionizing the way health benefits are structured in Canada.

We sat down with Kyle Welsh, an Account Executive at MyHSA, to discuss how their platform is helping business owners maximize health benefits while reducing tax burdens. Read on to learn about Health Spending Accounts (HSA), Wellness Spending Accounts (WSA), and Flexible Spending Plans (FSA)—and how they can benefit you and your employees.

What is MyHSA and Why Should You Care?

Founded in 2013, MyHSA started as a tech-forward solution to a paper-based industry. Today, over 4,000 advisors and 30,000 Canadian businesses use the platform to offer tax-efficient health benefits to 200,000 employees.

The traditional model of group insurance often comes with fixed premiums, limited coverage, and inefficient use of funds. MyHSA changes the game by providing a pay-as-you-go model, meaning you only pay for what is used. No sign-up fees. No unnecessary pre-funding. Just simple, tax-efficient coverage.

Why Health Spending Accounts (HSA) Are a No-Brainer for Business Owners

If you’re an incorporated business owner (consultant, physician, lawyer, real estate professional, IT consultant, etc.), an HSA is one of the most tax-efficient ways to cover health expenses.

Here’s how it works:

• You pay for a medical expense out of pocket (e.g., dental work, physiotherapy, vision care).
• You submit the claim through the MyHSA app.
• You get reimbursed tax-free by your corporation, and the corporation writes off the expense.

Why is this better than paying out of pocket? If you were to pay for these expenses personally, you’d be using after-tax dollars—meaning you first have to earn that money, pay personal income tax on it, and then pay for your health costs. With an HSA, you shift the burden to your corporation, reducing taxable income while covering your medical needs tax-free.

Example: If you have a $5,000 dental bill, without an HSA, you would need to earn $8,500 to $10,000 in pre-tax income to cover it. With an HSA, your corporation covers the $5,000 expense, writes it off, and you get reimbursed tax-free.

Beyond HSA: Wellness Spending Accounts (WSA) and Employee Retention

Many businesses today want to offer more than just basic health benefits. Employees are looking for perks that improve their well-being and work-life balance. That’s where Wellness Spending Accounts (WSA) come in.

A WSA is a taxable benefit that allows employees to spend allocated funds on a range of wellness expenses, such as:

• Gym memberships & personal training
• Mental health services & naturopathy
• Fitness equipment, yoga, and sports leagues
• Cell phone bills & internet costs
• Education & personal development courses

Unlike traditional raises, which often go unnoticed in paychecks, a WSA offers tangible lifestyle benefits that improve employee satisfaction and retention. For example, a company could allocate $2,000 per employee annually, covering personal wellness and professional development costs.

Flexible Spending Accounts (FSA): Let Employees Decide

For businesses with diverse employee needs, Flexible Spending Accounts (FSA) provide even greater autonomy. Instead of dictating how benefits are allocated, an FSA allows employees to divide their budget between health, wellness, and retirement contributions.

Example: A company provides each employee with $3,000 in benefits annually. With an FSA, an employee could choose to:

Allocate $1,500 toward a Health Spending Account (HSA)

Allocate $1,000 toward a Wellness Spending Account (WSA)

Allocate $500 toward an RRSP (via employer matching)

This level of customization ensures employees maximize the benefits that matter most to them.

How to Get Started

If you’re interested in setting up an HSA, WSA, or FSA for yourself or your business, here’s how to start:

1️⃣ Visit GetMyHSA.com to learn more.
2️⃣ Work with an advisor (MyHSA does not sell directly to businesses). We can set up your plan and tailor it to your needs.
3️⃣ Set up your account and start optimizing your health spending tax-efficiently!

For a free consultation on how this can work for your business, book an intro call with us at MWAdvisors.ca.

­Book a free consultation­

Thanks for reading, and we’ll see you in the next issue!

Guillaume Girard, CFA CFP | Sam Lichtman, CFP
Millen Wealth Advisors

📩 Subscribe to our newsletter for more insights on finance, business, and tax-efficient strategies.
🎙️ Listen to the Millennial Money Canada Podcast on Spotify, YouTube, and Apple Podcasts.
⭐ If you enjoyed this edition, please rate our podcast and share this newsletter with fellow business owners!

Disclaimer: Mutual funds are offered exclusively through Portfolio Strategies Corporation. Mutual fund investments are not guaranteed, as their values change frequently, and past performance may not be repeated. This message is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any mutual funds. Please consider your risk tolerance and financial situation before investing, as mutual funds carry various risks depending on the nature of the fund. You should read the applicable fund facts or prospectus document carefully before investing. For personalized advice tailored to your circumstances, please contact us directly. Data and research from Dimensional Fund Advisors using Index Funds. Actual portfolio returns may vary.