So how do you provide flexible benefits for a small business?  There are at least two simpler, affordable options that allow businesses to give their employees the flexibility to choose: Healthcare Spending Account Plans, and Modular Benefits Plans.

Healthcare Spending Account (HSA) Plan

With an HSA plan, the employer chooses a fixed annual funding amount for each class of employees.  Within their annual funding amount, each employee has full discretion to choose where to spend their healthcare dollars. Most plan providers can manage multiple classes structured by occupational role, seniority, percentage of earnings, or other legitimate distinctions.  For example, an HSA plan could provide $600 for employees with less than 2 years of service, increase to $1,300 for 2 to 5 years of service, and $2,800 after 5+ years at the company.

The HSA funding amounts and classes are typically reviewed annually, allowing the business owner to decide on any changes to be made for the upcoming year.  With fixed benefit amounts for each employee, there are no renewal increases.  In addition, an HSA plan allows a diverse group of employees to claim a wide range of eligible expenses defined by the Medical Expense Tax Credit guidelines.  Employee choice is built right in to the nature of the plan.

Modular Benefits Plan

With a modular benefits plan, the employer makes several tiers of coverage available through their plan provider for employees to choose from (eg. Level 1, Level 2, Level 3).  These plans include traditional defined elements like a prescription drug card, dental care, paramedical services, and vision care.  As employees move up in levels, typically the percent payable, dollar maximums, and/or range of eligible expenses increases.  Each employee selects their level of coverage once per year, and most often pays a top-up cost through payroll deduction for coverage above the “base” plan.

A modular benefits plan allows employees to choose their desired plan coverage each year based on family needs and cost.  For example as children grow and leave home, an employee may choose to shift to a lower tier because their family’s claims have reduced.  Modular plans are a simplified approach to flexible benefits compared to cafeteria style plans, combining employee choice with simpler administration and managed costs.

Because you need your business to stand out when you’re competing for top talent, and employees consistently prefer flexible benefits options, an HSA plan or a modular benefits plan might be the solution.  Even better, flex benefits like these will help to keep the cost of your benefits plan under control year over year.  Talk to Beagle Benefits about finding the right provider for flex benefits for your small business.

What You Need to Know About Critical Illness Insurance

Critical Illness Insurance seems to be everywhere these days.  Your bank is probably calling to offer you coverage (I know ours is), you’ve likely seen ads or references in the news, maybe your neighbour mentioned their new policy.  But what exactly does it cover and why would you need it?  And how is it different from coverage you may already have?

Do I Need Critical Illness Insurance?

CI helps with the financial strain that can be caused by dealing with a serious illness. What would you do if you needed to cover additional childcare expenses while you are receiving medical treatment?  How would you pay for an entry ramp or widened doorways if your mobility restricts you to a wheelchair?  It’s important to consider other benefits covering you, such as life insurance, long-term disability, or healthcare benefits.  However these plans usually don’t cover day-to-day living expenses, home care, child care, or the costs of traveling to treatment.

CI is a “Living Benefit”

A CI policy pays out to cover expenses incurred when you survive a major illness.  Typically payment from a CI policy requires survival for a period of 30 or 90 days after the diagnosis of a listed condition.  The insurance payment is tax-free, and can be used for any expenses at the patient’s discretion.  This means you can decide how best to spend the benefit, to offset the cost of living expenses, travel, home modifications, or other cash needs at the time.

Although policy terms vary, typically a CI plan covers dozens of the most common life threatening conditions including:

• Alzheimer’s Disease
• Life Threatening Cancer
• Coronary Artery Bypass Surgery
• Heart Attack
• Multiple Sclerosis
• Stroke

How Does CI Compare to Other Policies?

Unlike Long-Term Disability (LTD), the payout from a CI benefit is based on survival for a specific duration after a serious diagnosis, not whether your condition is disabling over a period of time.  Whereas LTD benefits are intended to replace part of your on-going income if you’re unable to work due to an illness or injury, a CI benefit is not limited in this way.  In fact, CI coverage is available for dependents including children, not just for working adults.  While income from other sources like CPP or WSIB will reduce an LTD benefit, CI does not have these kinds of offsets.

Because a CI benefit is not based on continuing impairment, it also differs from Long Term Care insurance (LTC).  LTC policies are intended to help pay for nursing home or in-home care expenses, and these benefits are most commonly paid out for seniors who require assistance with daily living activities. The payment from a CI policy is not limited to specific kinds of expenses but instead can be spent according to your needs.

Be aware that CI, LTD, and LTC benefits are not mutually exclusive.  They are designed to protect against different risks and provide for different needs.  For example an individual who suffers a stroke may recover, receive a CI payment from their policy, and be off work for an extended period of rehabilitation during which their LTD policy would help to replace lost income.

CI can be included in a group benefits plan at a very reasonable cost to cover all full time employees.  Many insurers offer a guaranteed level of coverage for a group of employees with no medical questionnaires.  Individual CI policies are also available.  To find out more about Critical Illness Insurance, contact Beagle Benefits.

Thinking Ahead: Seven Strategies for Spending Your HSA Dollars Wisely

One key reason that healthcare spending account (HSA) plans are an increasingly popular option with employers is that they offer a direct incentive for employees to make careful decisions with their healthcare dollars.  For employees, an HSA plan offers maximum flexibility with coverage for a wide range of expenses compared to a traditional plan.  But because an HSA comes with a fixed dollar limit, it’s essential to make every dollar count.

Comparison shop.  Everyone knows you can shop around for retail deals, but this is also true for medical devices and services.  For example, the identical model of TENS machine costs about $125 from a medical supply company, but can cost more than $500 when purchased from a rehabilitation clinic.  It’s worth looking around for comparable prices before you buy.

Apply for prescription payment assistance cards.  Pharmaceutical companies offer savings programs to help patients with the cost of prescriptions, with simple application on-line or by phone (see our More Resources page for two of these programs).  These cards can provide savings at the point of sale, before you submit a claim to your benefits plan.

Check for provincial benefits available to you.  In Ontario, the Assistive Devices Program provides coverage for certain conditions and expenses. The Ontario Drug Benefit is the first payor for residents age 65 and over. In addition OHIP covers eye examinations for those under 20, over 64, and for certain specific eye conditions.

Ask about providers’ fees.  Dispensing fees differ between pharmacies, and dental offices can also vary in their standard charges for regular treatments.  Some practitioners will offer a package price, such as monthly or family service packages from a chiropractor.

Budget ahead for larger expenses.  Many HSA plans include a carry-forward provision.  This can allow you to save funds from one year and carry them forward into the next year, to pay for a larger expense incurred in the second year.

A careful approach to spending helps both employers and employees to maximize the value of their benefits plan.  Even if your benefits plan doesn’t include an HSA, traditional health and dental plans are priced based on the total claims paid, so avoiding excess expenses will help to control cost increases at renewal.  Call Beagle Benefits for plan design ideas and other strategies that will help your business.

Bringing Your Team Together:  Power Up Engagement This Year

There’s a big gap between employer-sponsored wellness initiatives and employee engagement in these initiatives, and it’s limiting the impact of efforts to promote wellness in the workplace.  Over three-quarters of Canadian and U.S. employers report that they offer workplace wellness programs (2014 Working Well Survey by Xerox’s Buck Consultants).  But when employees were surveyed, 61% reported their employer does not provide programs or initiatives to promote health and wellness in the workplace, and 12% said they don’t know (2016 Sun Life Canadian Health Index).

Share employee assistance program (EAP) and wellness program provider resources like posters, flyers, and topical emails throughout your workplace.  Initiatives like Bell Let’s Talk promoting mental health awareness and action, and Canada’s Healthy Workplace Month in October, provide more opportunities to invite employees to get involved.  Reach out to your network and invite speakers to hold lunch and learn sessions about local fitness and wellness resources.

Get Involved

One of the best ways to inform and engage employees is by doing.  Lead by example!  There are lots of fun and inexpensive ways to get started.

Why not promote your wellness initiatives by signing up for the ParticipACTION 150 Playlist, and encourage your team members to join in by giving prizes for digital badges or team achievements.  On a smaller scale, you can foster workplace activities like lunchtime walking groups, stair-climbing instead of elevator use, and healthier snack alternatives at meetings like veggies instead of donuts (that’s bound to get some attention!).  To learn about launching your own workplace wellness program, check out healthywork.ca for free supports and how-to steps.

Closing this gap between opportunity and participation is about more than the ROI on your wellness initiatives.  The dollars and cents of engagement are persuasive; it’s true that healthy, happy workplaces are more productive.  But when you’re spending 8 hours a day with your team, wouldn’t you prefer a workplace that’s more positive, more fun, and a more engaging place to be?  We think so too.

Call Beagle Benefits to learn more about introducing and communicating EAP and wellness initiatives as part of the benefits plan in your workplace.

Give Your Total Compensation a Boost with Benefits

Business owners have good reasons to be interested in the results of two recent surveys that demonstrate why benefits should be a key part of total compensation. The 2016 Sanofi Canada Healthcare Survey revealed employee opinions about the importance of health benefits.  43% of plan members see their health benefits plan as something to use for necessary treatment or prevention and 35% look at their health benefits plan as extra compensation.  For employers funding a benefits plan, the good news is that employees strongly value their benefits coverage.

With health benefits you’ll save on Employment insurance (EI), Canada pension plan (CPP), workers compensation (WSIB) depending on industry sector, and employer health tax contributions in Ontario.  In addition, when the business pays the cost of health benefits for employees, the Canada Revenue Agency (CRA) considers that a tax-deductible business expense.

Benefits Give More to Employees

When balancing benefits coverage and direct compensation within a budget, keep in mind that in addition to boosting employee satisfaction, health benefits are cost effective for employees too.

Paying for health and dental benefits for employees, instead of a direct increase to wages, reduces the employee’s share of income tax, EI and CPP.  (Note there are exceptions: employer-paid premiums for group life insurance, AD&D, and critical illness insurance are taxable benefits that must be included on T4s).  The claim payments that employees receive from a benefits plan are also tax-free to them.  Compared to employees paying for medical or dental expenses with after-tax dollars, benefits coverage puts more cash in their pockets.

Because employees consistently place a high value on benefits, business owners planning on giving raises in the upcoming year should consider spending some portion of those dollars on adding or improving benefits instead.  Benefits coverage is a cost effective investment both for the business and for employees, with tax savings on both sides.  To learn more about boosting compensation for your business, call Beagle Benefits.

Here are 10 ways an HSA delivers more benefits with less hassle:

For Your Employees:
1. Employees get to choose how to spend their healthcare dollars.
2. 100% reimbursement with no deductibles or co-payments.  
3. No pre-existing condition limitations or exclusions.
4. Unpaid amounts from a spouse’s plan can be claimed through the HSA.
5. No mandated age limit – benefits can continue beyond age 70.

For Your Business:
6. Cost control – you set the annual budget.  
7. No renewal increases.
8. Fully tax-deductible expense to your business, including admin fees and applicable taxes.
9. Unspent HSA dollars are returned to your business.
10. You can choose different HSA benefit amounts for your classes of employees.

An HSA plan is a win-win both for your employees and for your business. To learn more about the nuts and bolts of how HSAs work, check out the Healthcare Spending Accounts section on our website.  Call Beagle Benefits and we’ll help you set up a flexible, cost-effective plan for your business.