There are many health, dental, vision and drugs coverage strategies for Canadian companies. The PreTax Health Spending Account has a place in them all, whether you’re a single owner-employee or 1000+ employees.
If Your company does not have a medical or group benefit plan
PreTax Health can be the only plan a company has, or it combined with a traditional health insurance program.
With the PreTax Health plan you can group each type of employee, and assign each employee group an annual reimbursement maximum, or limit. Different employee groups (or classifications) i.e. executives, part-time staff, etc. may have different annual reimbursement maximums or limits. Employees will be reimbursed based on the eligible claims they submit until they reach their annual assigned limit. If there are unused or left-over amounts, there is either an option to carry these amounts forward for one calendar year, or to not allow any carry forward.
If You already have traditional health insurance (eg. Blue Cross)
PreTax Health enables reimbursement of a wide range of both traditional and non-traditional health expenses (including dental, medical, massage therapy, orthodontics, laser eye surgery, vision care, etc.
(visit http://pretaxhealth.com/faq/examples-eligible-expenses-claim-my-hsa.html for further details on what is covered). It also covers all the left-over health expenses that are not covered by traditional health insurance plans such as Blue Cross (or similar insurance coverage). For example, if you current traditional health insurance plan covers 70% of your dental expenses up to an annual limit of $700, then the PreTax Health plan can be used to cover all the remaining expenses. The only limit is the one the company assigns to the employee (or employee-owner) as an annual overall limit. Now you can cover 100% of your family’s routine health care expenses through your corporation. You’ll also gain access to a much wider range of health care services, including: vision care, laser eye surgery, massage, orthodontics, etc.
If You are already covered under your spouse’s health insurance plan
When your incorporated business implements the PreTax Health Spending Account you will then be able to cover all the left-over expenses that are only partially paid for by your spouse’s health insurance plan, and those your spouse’s plan will not cover at all. This coverage also applies to any dependent children you or your spouse may have. Normally you would first process any claims through your spouse’s plan, and after the ‘Explanation of Benefits Statement’ is available from your spouse’s health insurance company, you would then claim the remaining expenses (both unpaid and left-over expense) by submitting them for payment to your PreTax Health Spending Account.
If You are the only employee of your own corporation
If you are a single employee-owner with your own corporation the PreTax Health Spending Account is a great option. An executive employee group (or classification) is setup and the employee/owner and their dependents (i.e., their immediate family) will be able to immediately claim all eligible health expenses (e.g., health, dental expenses, vision care, chiropractic, orthodontics, massage therapy, etc) through the PreTax Health plan, up to the annual maximum that your company sets. The annual maximum health claim limit should always be a reasonable amount proportional to your annual income, or commensurate with the type of health benefits the employee might expect to receive if they were an employee of at another company.
If You have multiple employees working at your corporation
For companies that have many employees, the PreTax Health Spending Account is the most cost effective solution for providing your employees with valuable health benefits to cover virtually all routine health care expenses. The PreTax Health Spending Account can be setup by your company to provide a variety of annual reimbursement limits to different groups (or classifications) of employees (i.e. executives, full-time staff, part-time staff, etc.). These limits can be customized to match your company’s overall compensation policies.
if You have an existing health benefit plan that you wish to enhance
If your company already has a traditional health insurance/benefit program, you can still use the PreTax Health Spending Account to cover a wide variety of health expenses that would not normally be covered by your existing health program, including orthodontics, laser-eye surgery, or massage therapy, etc. In fact, any item that will qualify as a medical expense in the Income Tax Act also qualifies under the PreTax Health Spending Account (HSA). The PreTax Health HSA will also take care of all the left-over health expenses that are only partly covered by an existing health insurance program. In addition employees can also use the PreTax Health HSA to supplement existing coverage available in spouse’s health benefit program.