Did you know that as many as 91% of Canadians prefer their healthcare system to those of other countries’, such as the United States, according to a Strategic Counsel survey? Because Canadian healthcare is funded by Canadians’ income taxes, there are many advantages but also many things to keep in mind when administering health insurance for small business owners. If you’re unsure about how Canadian health insurance works, here are some quick facts about the country’s health care.
1. The Canada Health Act (CHA) is responsible for changing the way healthcare works in Canada. This legislation was adopted in 1984 and specifies the ways in which provinces and territories must adhere to government standards in order to receive federal transfer payments. The legislation sets the following standards for healthcare in Canada: that it must be comprehensive, universal, portable, and accessible, and that it is administered publicly.
2. Healthcare in Canada is regulated to bring savings and quality coverage to Canadian citizens. For instance, spending on advertising for health insurers is limited in order to cut down on administrative costs. Also, prescription medications for the elderly and indigent are covered by public funds, in addition to many other essential services. The overall goal of healthcare in Canada is to maintain and improve the health in well-being of Canadians, according to the CHA’s guidelines.
3. Some employers look to Health Spending Accounts to provide health insurance for small business owners. In addition to the basic care that the CHA guarantees, Health Savings Accounts are designed for small businesses to provide better benefits to employees and better premiums, cost effectiveness, and tax advantages to employers. HSA plans cover 100% of out-of-pocket healthcare costs with 100% pre-taxed dollars for employees. As many as 72% of small business owners have concerns about the cost of healthcare per employee, and 50% are also concerned with the level of coverage their employees receive. HSA plans take care of these concerns.
If you have questions on health insurance for small business owners, be sure to ask a provider as soon as possible. The CHA covers much of what Canadians need, but they can have more thanks to their employers. Have something to ask? Leave a comment below.