Canada’s public health care system has been a part of the country’s foundation for generations. It includes general and specific health care for Canadian citizens that is largely funded by the government, and public taxes. This means that unlike countries like the United States, many people do not need to purchase insurance to receive quality medical care. The average doctor’s office visit is subsidized, and the elderly and indigent Canadians are even offered pharmaceutical medications that are fully covered. Even though the publicly funded health care system in Canada ensures its citizens adequate health care, many people purchase health care plans from their employers for additional coverage that may not be included in the public system.
The rising cost of traditional insured employee health benefits plans is one of the biggest problems facing small business owners in Canada today. Small business health insurance benefits or insurance plans still do not typically cover co-pays, deductibles and some other services. About 30 percent of the country’s health care expenses comes from private sources such as insurance companies and out-of-pocket medical payments that are not covered by the public health care system. For this reason, many companies turn to health spending accounts to help their employees mitigate health care costs that are not covered by their own company’s health insurance plan, or the publicly funded health care system.
A CRA health spending account reimburses employees for medical care that is deemed eligible, and all of these accounts are made in accordance with the Canada Revenue Agency (CRA). An HSA health plan will credit a business’s account with a certain number of credits every year that can be used by the company to offset employee health care needs. Companies can also submit insurance claims as they happen to receive funding. CRA health spending accounts can be used in conjunction with an existing health care plan to finance expenses that are not covered by traditional health care insurance, such as dental or orthodontic treatments, out-of-country medical expenses, and certain surgeries.
If you are looking for health benefits for small business owners, considering investing in a CRA health spending account for your company. It gives employees a comforting cushion for costs that exceed their out-of-pocket ability to pay for their own medical care. Being part of the 60 percent of employers that are concerned about providing quality health care for their employees, will show your employees that you value them, and that you appreciate their work. This sentiment can foster a positive environment in your company, which can lead to greater productivity. Both of these results make the investment worth it.