Small Business Health Insurance
Consider a Health Spending Account(HSA) if you are looking for small business health insurance or self employed group health insurance.
Side Note - if you wanted info on a traditional benefit plan, click Small Business Group Health Insurance to find what you are looking for. A HSA is an alternative to insurance.
What is a Health Spending Account?
A Health Spending Account is like a bank savings account earmarked for the sole purpose of health care spending. It is a great solution for small businesses, incorporated professionals, or sole proprietors. HSA's are recognized by CRA (Canada Revenue Agency) and allow the individual to pay for their annual healthcare costs in pre-tax dollars. CRA recognizes these "contributions" to the fund as a full business deduction! This saves significant money in taxes.
If you are a business owner or incorporated professional paying for health care expenses out of pocket, a Health Spending Account is worth looking at. Or if you have a traditional benefit plan and are concerned with rising costs, a HSA can contain or reduce those costs. An employer could even choose to make it a fixed cost.
This type of plan can help to reduce the cost of unique needs not met by traditional plans. And they are especially valuable when there are significant annual costs for special care.
Employees love these plans because they can choose how to spend the dollars allocated to them (on health related expenses). There is a much wider range of eligible health and medical services available than traditional health insurance plans
In short, these plans provide tax savings, flexibility, a wider range of coverage, and best yet … unused funds are not lost!
For small businesses and individuals without small business health insurance, the biggest barrier to buying benefits is money. An HSA helps you to provide for your immediate healthcare needs while freeing up cash-flow from tax savings.
What If A Big Illness or Injury Happens?
It has probably occurred to you that a HSA is a form of self insurance. And that is appealing to many business people.
But what happens if you, or an employee get really sick or badly injured? Could you afford huge medical bills? Or lost income? It is important to consider stop loss insurance for the really big, unpredictable events. Ask me about stop-loss and other preventative measures if you are interested in an HSA.
If you want more general information on group insurance and related products, return to Group Insurance Canada from this Small Business Health Insurance page
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