Health Spending Account Benefits for Small / Medium Business Owners | By YourHSA
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Innovative & affordable health benefit solutions Hi, I’m Winston and I’ll be your guide as we explore...
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Transcript of Health Spending Account Benefits for Small / Medium Business Owners | By YourHSA
Innovative & affordable
health benefit solutions
Hi, I’m Winston and I’ll be your guide as we explore...
What is a health spending account?
An HSA provides a way for a
business to pay for medical
expenses using before tax
dollars
100% tax deductiblefor the business
100% tax free for the owner and/or the employees
How does a health spending account work?
Members use the funds to spend on eligible
health care costs
The Plan Sponsor business contributes to the
accounts activated for Plan Members(the owner and/or employees)
What is eligible?• Orthodontics• Laser eye surgery • Restorative dental• Services performed by Naturopaths &
Dieticians• Out of Province procedures• Fertility treatments• Tutoring services for people with learning
disabilities• and ...
Here’s the full list of eligible expensesAnything covered
in a traditional plan and much
more...
Who is eligible?Any person related by blood / marriage or law
who is financially dependent on you
Yup...yourself...
and...A spouseA parent...or in-lawA child...
of any age!An ex spouse!
Any person?
Why use YourHSA?• No start up fees!• No annual fees!• No inactive account fees!• Easy account access!• Simple to make claims!• Fast claim turnaround!
Logging in is easy!!
Checking account balances is simple!
Submitting claims is a synch!
How would I use an HSA in my business?
Self employed individuals
Meet Tom, a business owner earning $65,000 a year. He expects his out of pocket drug dental and other medical
costs will be roughly $5,000 next year for he and his family.
Using a health spending account instead of paying for healthcare expenses using
personal income, not only will he reduce his personal taxes by almost
$2,000, but the costs are 100% deductible to his business.
Comparing to Personal Health Insurance (PHI)
• More covered expenses• Actual Value vs. Perceived
Value• Less Limitations• Carry forward features
How can this be offered to employees as a benefit solution?
Why are we offering benefits to our
employees in the first place?
Blended Benefit Plan
Insurance company provides:• Disability coverage• Life insurance• Travel insurance
YourHSA supplements with:• Health spending account
for extended health needs
Cost certainty Eliminates plan abuse Provides greater value to employees Ideal for small to medium size businesses
Why don’t traditional drug/dental and
extended health plans do this?
Challenge #1: The cost of traditional drug plans cannot
be controlled
Challenge #2: Traditional drug plans encourage spending
Challenge #3: There are many hidden fees and charges
Insurance 101:
DisabilityLife insuranceCritical illnessCatastrophic lossTravel insurance
Regular everyday drug, dental and extended health
expenses
What should be insured?
No!
No!No!
Yes!!!
And don’t forget your provincial
catastrophic drug plan... Insurance
companies haven't!
What would you rather have?
Actual Claims Paid
Reserves
Inflation Factors
Administration fees
Risk Charges
Profit
CommissionsProfits &Commissions
Actual benefit held in trust for each employee to cover all Revenue Canada approved eligible medical expenses
Perceived value vs. actual value
What is the result of using blended benefit
plan?• Attract and retain• Better return on investment• Encourages responsible usage• Promotes a healthy workplace
