Inflated Health Benefits Programs Don’t work
When I decided to get into this industry I had no idea what I was getting into. But as my journey began the information that I was obtaining was blowing my mind. The one thing that struck close to home for me was the health and dental plans I had with employers before. I was introduced to Blendable and what a HSA was. When I went thought the classes on it, my biggest question was why doesn’t more companies know about this????? This is when I knew that I needed to get ahold of the companies because this could save them thousands of dollars and be extremely beneficial to their employees.
A Health Spending Account (HSA) is a flexible, cost-controlling wonder of a benefits solution. Let’s break it down.
Financial Implications
An HSA provides your team with tax-free funds for their medical expenses while being tax-deductible for your business. Already you’re lining your team’s and business’ pockets with more money.
Due to the transactional nature of health and dental expenses, an HSA is the perfect vehicle to cover them. Plan Members can accumulate funds, so any transactional expense can be planned and saved up for. Regardless of if it's a simple routine check-up or braces for your kids!
Finally, no premiums. You set the budget and stick to it. No more renewals that break the bank, no more worrying about increased usage. Your costs are back in control and the power is in your hands.
Remember that Target Loss Ratio where your cost to pay a claim could be 100% of the dollar value of the claim? An HSA is based around an Admin Fee which can bring your cost to pay claims down to 10%!
Sustainability
There isn’t much to say about sustainability when it comes to an HSA other than it is the most sustainable solution out there. With you setting the budget, you only pay what you can afford.
The lack of premiums makes an HSA really easy to add in as a line item because you know exactly what you’re getting into year after year.
Perception of Value
We live in a diverse world, with people who have diverse needs. That’s why rigid plans don’t work. If one member of your team doesn’t use their benefits, they’re essentially taking a big pay cut compared to someone with high usage.
The beauty of an HSA lies within its equity.
Spending is completely up to the discretion of the Plan Member, and they won’t be held back by any categorical maximums. Contributed funds also rollover so you don’t have to adopt a “use it or lose it” mentality. Moreover, for our HSA Rollback, after a set period of time, unused funds roll back to the company. This feature allows Plan Sponsors to set a comfortable budget, but additionally reclaim some funds if some years have low usage.
We can take it a step further and introduce our HSA Rollover, which is the ultimate when it comes to value. All contributed funds are rolled over as usual, however after a set period all unused funds are rolled into a Group RRSP. So even if your team doesn’t have use for their benefits, they still can get value out of them. It all begins with an idea.
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