Health Spending Account Benefits for Small / Medium Business Owners | By YourHSA
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Health Spending Account Benefits for Small / Medium Business Owners | By YourHSA

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Traditional benefit plans can negatively impact sole proprietors and small / medium business owners, and many opt to not offer benefits to employees. Cost-effective and flexible options do exist, and ...

Traditional benefit plans can negatively impact sole proprietors and small / medium business owners, and many opt to not offer benefits to employees. Cost-effective and flexible options do exist, and they can be written off as a business expense!

Benefits Revealed - Learn about the best Tax Deductible solutions for your business and how to attract / retain quality employees by providing truly great benefit plans!

Speaker: Adam Hussey, Founding Partner at YourHSA

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  • Consider a health spending account a piggy bank for your drug, dental and extended health needs. Money deposited by your business can be used to cover all CRA approved eligible personal medical expenses. By using a 3rd party administrator such as YourHSA all contributions are 100% tax deductible. <br /> <br /> This can be set up for a 1 person business or multi-employee corporation as a cost effective alternative to an insured drug and dental plan. <br />
  • Provide examples
  • The definition of dependants for a health spending account is more flexible than traditional drug, dental and extended health plans: <br /> Any person related by blood / marriage or law who is financially dependent on you. Common-law spouses must have resided with you for the past 12 consecutive months. <br /> <br /> This can be a real benefit to many families. <br /> <br /> It is becoming more common for children to stay home after graduation of post secondary school and an ever increasing trend for people to pay for the health costs of their elderly parents not covered by government programs. <br />
  • Clients have the ability to check account status online as well as submit claims <br /> YourHSA does not require original receipts. Information on the receipt is required to be input. The client must keep a copy in case they are audited by CRA or YourHSA. <br /> One of the fastest reimbursement processes in the industry. Our goal is a 2 day reimbursement for common HSA expenses. Complex claims such as out of country procedures may take longer to process. <br /> Enrolment is quick and simple as everything can be done online. Once all required information is completed the client will immediately be sent a welcome package via email.
  • Any small business owner is challenged with how to pay for drug, dental and extended health costs. If they do not have access to a group plan through a spouse, most small business owners or self employed pay for these expenses out of pocket using after tax income dollars. <br /> <br /> This is where a health spending account is of great value. No longer do business owners have to pay for these expenses personally. All they need to do is set up a health spending account and any contributions the business makes are 100% tax deductible to the business, while all eligible medical expenses are reimbursed tax free.
  • <br /> It is important to offer some sort of drug, dental and extended health coverage and this is where we would recommend a health spending account for the employees as a cost effective alternative. Employees often perceive their drug benefits as the most important part of their benefit package as well. <br />
  • Insure high cost events with a low frequency of happening. In probability theory, the law of large numbers (LLN) is a theorem that describes the result of performing the same experiment a large number of times. According to the law, the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed. http://en.wikipedia.org/wiki/Law_of_large_numbers <br />

Health Spending Account Benefits for Small / Medium Business Owners | By YourHSA Health Spending Account Benefits for Small / Medium Business Owners | By YourHSA Presentation Transcript

  • 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 deductible for 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 expenses Anything 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 spouse A parent... or in-law A 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: Disability Life insurance Critical illness Catastrophic loss Travel 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 Commissions Profits & 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
  • 1.888.569.9399 info@yourhsa.ca @YourHSA