The Benefits of Offering a Flexible Health Spending Account
If you are a small business owner in America, you are probably worried about the many new requirements that will go into effect in 2014 as a result of the Patient Protection and Affordable Care Act, or Obamacare, as it is known colloquially, passed by congress in 2010. In the near future, health benefits for small business workers will be mandatory, so it is definitely a good time to think about how you are going to deal with health insurance and the flexible health spending accounting for small business employees.
The flexible spending health savings account was created for small businesses as a means of providing much better benefits for employees and better premiums for the business. It is popular with both management and workers. The flexible health spending account is becoming more and more prevalent these days in employee provided health care benefits.It a wise move to to offer a Cra health spending account or a flexible health spending account to your employees, as this may decrease your health care related costs in a number of different ways.
The Canada Health Act, which was adopted in 1984, specifies all of the conditions and criteria with which the provincial and territorial health insurance programs, including the flexible health spending account, have to conform. If provinces and territories do not conform to these requirements, they will no longer receive federal transfer payments under the Canada Health Transfer. Strategic Counsel research has concluded that 91 percent of Canadians prefer their health care system over a United States type of system. This is probably because in Canada, there are no deductibles and almost no co pays, making a flexible health spending account unnecessary.
Debates continue to go on regarding whether the socialized Canadian health care system is more effective than the American privatized health care system or the other way around. Unfortunately, a lot of this debate has less to do with practical outcomes than it does with philosophical pretexts. People on both sides of the public versus private health care debate do believe, however, that offering a flexible health spending account for small business workers is a good thing for employers to do. Hopefully, someday both sides can come to a consensus on the best way to make the flexible health spending account for small business employees available while cutting health care costs.