Steve is an owner employee who has an incorporated company with dependents.  A couple of years ago he switched from a traditional health insurance plan with Manulife to the PreTax Health Spending Account.

Steve shared his saving calculations with us…


…”My annual health expenses the year I made the switch to PreTax Health were about $12,200.  This figure included the following:

  1. $3,000 annually for my sons braces
  2. $2500 for routine dental for 4
  3. $3000 in dental crowns
  4. $1500 in massage therapy
  5. $300 in out of country massage therapy (during a Caribbean vacation)
  6. $1200 in prescription drugs
  7. $700 in acupuncture treatment

I was paying Manulife about $290 each month, or $3,500 each year and of the $12,200 they covered about $3,100 (70-80% of the routine dental and the prescription drugs).  They would not cover braces for my son, most of my wife’s crown work, and none of the acupuncture and massage therapy (both in and out of country).

Our PreTax Health Spending Account now covers 100% of all of these expenses and there is no monthly cost. My company pays for the health expenses after we file the claims.  We keep our receipts and when I have a few collected I log in and file a claim online and we see the money arrive in our personal account as a direct deposit in about a week.  Its painless and with the online expense management reports I no longer have to keep a spreadsheet to track my health expenses.

Here is my annual bottom line:

A. Manulife Traditional Health Plan:Monthly cost – $3,500
Left-over out of pocket health expenses – $9,100 (they paid out $3,100)

B. PreTax Health Spending Account:
Monthly cost – $0
Left-over out of pocket health expenses – $0

Note: I suppose you could factor in my $99 one-time sign-up fee but it hardly seems worthwhile.

Since an HSA is primarily geared to routine health expenses I also wanted to get some accident insurance for my family.  When I checked into this I found there were a lot of good alternatives here; you don’t have to use a traditional health insurance plan to get this type of coverage.  I managed to get a Kids Plus plan from Special Market Solutions for about $120 per year for the whole family.

We are all looked after now and I get to write-off 100% of my HSA expenses through my company.

Thank you PreTax Health you guys are the best!


Steve H.