Now more than ever, Canadian company owners in need of small business health benefits are starting to realize the value of Benecaid Health Spending Accounts (HSA). Compared to traditional models of small business medical insurance, the Benecaid HSA is both very straightforward and highly transparent. For small-scale employers and employees alike, a Benecaid HSA represents a good compromise without any of the hassle traditionally involved when coordinating health benefits for small businesses.
Unfortunately, many entrepreneurs are still under the illusion that small business medical insurance is their only choice when uncovered medical bills start to appear.
Understanding HSA coverage
A health spending account is generally considered to “the way to go” in terms of small business health benefit plans. This plan is an attractive option because it lets small businesses provide coverage for their employees and their families on a tax-free basis.
Eligible entrepreneurs choosing HSAs for their small business can also deduct medical and dental fees from their gross business income, rather than having to absorb these fees as personal expenses. Obviously, this makes for a very cost-effective health benefits option – but how do these plans work, exactly?
Choosing HSAs Instead of Small Business Medical Insurance
- How do they work? Benecaid is a third-party administrator specializing in the provision of health spending accounts to be used as small business medical insurance. You can learn all you need from our website at http://benecaid.wpengine.com/health-spending-account.Here’s a quick-and-easy breakdown. Imagine you have funded your employees’ HSAs with $1,000. An employee goes to their optometrist and learns he needs glasses. The employee will pay for their glasses out-of-pocket, and then collects the receipts. This receipt is submitted to the third-party administrator, who verifies the claim and then sends the claimant a cheque that covers the bill. The business gets a 100% tax deduction, and the employee enjoys tax-free coverage.
- Who is eligible? The owners and employees of any incorporated businesses are welcome to enroll in a Benecaid HSA. Any business with as few as one employee is eligible, though this coverage does not extend to shareholders. Only bonafide wage-earners can benefit from this small business medical insurance.
Where do I sign up?
Signing up and maintaining your account are both relatively simple with Benecaid. If you would like to learn more about the health spending account, or to explore any other plans that we offer as alternatives to small business medical insurance, then call 1-877-797-7448 today!
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Author: Christine Oliver, Director of Marketing