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Could Your Small Business Benefit from a Health Spending Account?

Value for money in health spending

Canada has a publicly-funded medicare system, with most services provided by the private sector. There are a number of benefits to this system: firstly, preventative care and early considered are prioritized and yearly checkups are encouraged as a way to extend life expectancy and quality of life, as well as reduce overall costs. Secondly, there are no deductibles on basic health care and co-pays are very low or non-existent. However, around 75% of Canadians supplement these basic health services with a supplementary form of private health insurance which is often offered through their employers. For this reason, many companies, especially small businesses, find it necessary to research medical and dental insurance for small businesses. But out of the many small business health insurance plans available, many businesses find that their best choice is to set up health spending accounts for their employees.

Under traditional health insurance coverage, employees are required to pay for deductibles, co-pays, and services not eligible under their employee benefit plans. However, because of Canada’s publicly-funded medicare system, this differs slightly for Canadian employees and the businesses they work for. This system is managed by the Canada Health Act (CHA), a piece of federal legislation which was originally adopted in 1984 and specifies the conditions and criteria health insurance programs must meet in order to receive federal transfer payments. As a result of these set conditions, most medical services are provided by private entities and health care costs are paid through funding from income taxes. However, not all procedures and treatments are covered by the medicare system, and there often can be long waiting periods for covered procedures in order to treat a high number of patients. As a result, about 30% of Canadian health expenditures come from private sources such as insurance and out-of-pocket payments.

Due to this need for health benefits for small businesses and their employees, many companies are searching for the best medical and dental insurance for small business plan needs and budgets. However, as many as 72% of small business owners have expressed concern about the cost per employee of health care plans. However, health care spending accounts offer a number of advantages that make them both effective and affordable: not only do they create a set amount which is allocated to an employee’s health needs, but they also qualify business owners for tax breaks and benefits. For this reason, if you are looking for an affordable way to provide medical and dental insurance for small business employees, a health spending account is likely the best option for you. Fill the gaps left by Canada’s medicare system: set up a health spending account for your employees today. Read more about this topic at this link: www.myrhsa.com

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