This Health & Dental Plan Gives Canadian Businesses A Competitive Edge

By: Updated: April 12, 2017

 

Running a successful business is tricky in the current economy. For your business to remain viable, it has to weather the storms of competition. You have to be able to beat ferocious market forces and overcome volatility. In other words, you need competitive advantage that is sustainable.

All elements of a business can represent a potential source of competitive advantage. For example, consider health and dental benefits: when selecting a plan, there are many factors for a business owner to consider. However, two of the key components to establishing a competitive advantage are employee satisfaction and cost certainty.

Most traditional group health and dental benefit plans simply do not satisfactorily provide the basis for a competitive advantage. First, these plans are generally very restrictive in the types of costs that can be claimed. Second, they offer no cost certainty, in that premiums almost always increase each year.

A Health Spending Account (HSA) is a popular alternative to conventional group health and dental benefits plans. These accounts are affordable, flexible, and practical options for employers to meet the changing and diverse health and wellness needs of their employees while reducing their costs.

Employee Satisfaction

With an HSA, employees are allowed to spend the funds in whichever way they choose, so long as the expenses are Canada Revenue Agency approved health and dental expenses.

For example, if an employee chooses to, they could use the entirety of their allocated dollars, or credits, towards eye care for sunglasses, contact lenses, and prescription glasses. Or, an employee can spread the funds among many different expenses, in any percentage that they choose.

With traditional healthcare benefits plans, employees are only entitled to a maximum amount for each category of expenses. So an employee who needs $1,000 worth of prescription medicine might have to pay out-of-pocket if the employer-funded plan only covers prescriptions up to an amount of $500. And if an employee isn’t vision impaired, then the money that is allocated for eye care is essentially wasted. But under an HSA, the employee doesn’t have maximums or specific dollar amounts per expense category. There is only a total maximum dollar amount available for use, which can be spent as the employee chooses.

Recent survey results indicate that employees are placing a greater emphasis on the types of health and dental benefits they receive from an employer. With the flexibility that an HSA offers, businesses are more likely to attract and retain top talent by incorporating this type of plan.

Cost Certainty

HSAs provide cost certainty for employers. They know up front how much their benefit costs will be. And if there are no claims from one employee, the business isn't out-of-pocket any cost (other than the setup fee and annual fee the administrator may charge). This gives business owners confidence when planning their financials each year. They will not have to deal with unexpected, significant premium increases from plans that are likely to leave employees unsatisfied.

An HSA provides owners with the basis to effectively differentiate from competitors. This health and dental plan can help Canadian business owners achieve cost certainty, attract top talent and establish a satisfied employee base.

Related Reading: Health Spending Account for Small Business (Short Video)

Are you an incorporated business owner with arm's-length employees? Learn how the Olympia Health Spending Account can provide significant value for your employee benefit program by downloading our free guide: The Beginner's Guide to Health Spending Accounts.

Download Beginner's HSA Guide for a small business with employees

Write off 100% of your medical expenses

Are you an incorporated business owner with no employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation: 

Download the HSA Guide for Incorporated Individuals

Do you own a corporation with employees? Discover a tax deductible health and dental plan that has no premiums:

Download the HSA Guide for a Business with Staff

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