Health Care Costs
Attention business owners: Make personal health care costs a business expense.
Health care can be costly! Medications, treatments, dental procedures, and special education costs to name a few can cause real financial hardship to a business owner working hard to grow a profitable business and provide a comfortable lifestyle for family.
Business owners and their financial advisors are always on the look out for expenses that can be legitimately added to the business; using corporate dollars to pay personal expenses.
Traditional group benefits plans that pay some medical and dental expenses are not usually the best choice. These plans are limited for small corporations and an unsatisfactory solution for micro businesses, family enterprises and the independent self employed.
Traditional group plans restrict the number of family members included, often resulting in a decline to issue benefits. Mandatory participation requirements for micro businesses, can create difficulties. Many plans require medical evidence or decline pre-existing conditions, or the medications used to treat them. Age can be a factor, excluding older employees. High risk occupation classes can be refused. Even if the employee group is accepted by the insurer, limitations within the plan design often results in dissatisfaction as reimbursement for expenses isn’t sufficient (in the mind of the recipient) and not worthwhile.
The employer doesn’t control costs for annual renewal. Small business is always pooled with hundreds of others, so usage of the plan does not reflect the real experience of the insured individual group. All these negatives create frustration, discouraging the business owner who wants to attract and retain good employees while benefiting from a comprehensive plan for their own families.
It appears a traditional approach to managing health care expenses is not the answer. A more creative solution is needed.
The Employer needs a plan that has:
- No restrictions related to number of family members in the group
- No age restriction of the members in the group
- Medications covered to 100% of costs
- Treatments paid in full; no limit to the number of treatments, dental procedures covered fully
- No restrictions for pre-existing medical conditions
- No participation requirements
- The business owner controls costs
- 100% compliant with CRA
- Is simple to understand and administer
- 100% a business expense for owners & family personal health care costs
