The Helpful Benefits of Small Business Group Health Plans
Did you know that Canadian health care is delivered through a public system that is funded mainly from income taxes? However, approximately 30% of health expenditures come from private sources, such as out-of-pocket payments. Fortunately, many Canadian employers choose to provide their employees with small business group health plans, which can be helpful to employees and employers in a variety of ways.
Small business employee benefit solutions can be implemented in four simple steps. First, the employee health premium is unbundled from the life and disability premiums. Then, the new administration cost is subtracted from the health benefit premium dollars of the current year. After the level of high-deductible insurance is determined, the remaining funds are distributed to the tax-free health benefit account of each employee. Once employees have their new accounts, they are able to get better coverage than they are currently receiving from the publicly-funded health care system.
Not only do group health plans help employees receive more extensive health coverage, but they are also designed to benefit employers, as well. Even though 33% of Canadian small businesses do not see how a benefit plan will help their companies, these plans actually benefit employers in a variety of ways. Small business health plans deliver coverage that is tax-free to the employer, and employers are also able to control the budget for each employee, as well. This means that employers have the freedom to decide how much they spend, and this helps them choose the exact amount of coverage they can afford.
Since half of all Canadian businesses are worried about the level of coverage their employees receive, small business employee benefit solutions were created to help. These health plans are designed specifically for small businesses, and they provide employees with better coverage at rates that small business owners can afford. As a result, these types of plans are a common sense alternative to the employee benefit solutions that bigger businesses offer.
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