A Health Spending Account is one of those unknown secrets that any incorporated small business in Canada should look into. This type of coverage offers better tax benefits than most other plans and there are few restrictions on the health coverage.
With traditional health plans you’ll only get out about 70% in actual health benefits from the premiums you invest each and every month. The key reason for this is that the provider of these will be receiving on average a 30% profit. Since you’ll only be actually receiving about 70% of the high premiums you put in each month, isn’t it time to start looking at your other options?
Introducing the HSA – perfect for small businesses and entrepreneurs
With an HSA you won’t have to worry about percentage limits since 100% coverage is provided. Costs are lower since you won’t be subjected to a high percentage payout that ends up right in the pockets of the insurance carriers.
When it comes to routine health-care costs, you’ll have a difficult time finding anything that outshines an HSA. For example, there aren’t a lot of monthly health-care plans that cover items like massage therapy, contact lenses, laser eye surgery, naturopathy, glasses, orthotics etc. With the Health Spending Account, employees and their dependents will be able to access a wider range of healthcare products and services. This is a competitive benefit that will attract and retain people.
As an added bonus, the costs associated with an HSA can be written off on your taxes with Revenue Canada and claim reimbursements paid to employees are tax-free. When you combine this with the cost savings you’ll receive by not having to pay the inflated provider costs, you’ll see the true benefits of making the switch over to an HSA.
Many of the small incorporated businesses across Canada are discovering the Health Spending Account and using it as a primary or secondary health coverage system for their businesses. It’s an economical way to cut costs on employee health care while at the same time offering a wider range of both traditional and non-traditional health services to choose from. In comparison, monthly health benefit plans offer less flexibility, are more restrictive and are much more costly than a Health Spending Account.