When you're a small business owner in Canada, paying for your family's dental expenses can be a nightmare. If you are lucky, maybe you have partial coverage through a personal insurance or spousal plan but in reality the majority of your dental expenses are going to paid for out of pocket.
Here's 5 reasons you should switch to using a Health Spending Account / HSA Dental Plan
1. Write off your dental expenses
By using a HSA Dental Plan, your business pays for 100% of your dental expenses. The dental expense is treated as a business deduction while the personal benefit is 100% tax free to you as the business owner. For individuals in upper tax brackets, your dental costs can effectively be cut in half.
2. Get 100% coverage
Unlike traditional insurance plans, your Health Spending Account provides 100% eligibility for an extensive range of expenses. Your child's braces, crowns, and many other non dental related expenses are all 100% eligible. You are not restricted by the type of expense.
3. Attain clarity
A Health Spending Account is typically free of restrictions (an exception is the amount you claim per year - usually set at $15,000. This amount can be adjusted but the default yearly spending limit is set to $15,000 in most instances). You have a spending limit and that's about it. In short, the plan is simple to understand and use. Under a fully insured program, you will receive a plan booklet outlining the items that are covered, those that are restricted or excluded by definition, co-insurance, deductibles and fee guides. Determing your coverage, remibursements, and procedures can become overly complicated.
4. Escape "Premium Creep"
Your frustration with a yearly premium increase or premium creep will subside as a HSA provides a fixed cost structure. Cost control is placed firmly into your hands - giving you reassurance of no suprises. In addition, your cost will be unaffected by usage or age factors. You are free to use your HSA without restriction.
5. Eliminate co-payments and deductibles
Unpaid portions from an existing spousal plan or insurance plan that you have in place can be paid through your business. Therefore, you eliminate out of pocket co-payments and avoid the costly extra fees associated with insurance. Moreover, there are no deductibles and your benefit kicks in at the first dollar you spend.
By making the switch to a HSA Dental Plan, you effectively take charge of your dental costs, get complete coverage, and eliminate the frustrations associated with a traditional insurance plan. Download our free beginners's guide below and find out how a Health Spending Account can work for your small business.
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