We recently came across a new approach to health benefit plans. One of the issues many employers face is escalating costs for their employees health benefit plans. If the employees are active users of the plan the employer can expect to often have an increase in their health benefit premiums in the following year. It is difficult to plan what these increases might be as from an employer’s perspective it often seems to be fairly arbitrary on the part of the insurance company. In these challenging times, cost-containment becomes very important for every employer.

From the employee’s perspective they may be quite pleased to have a health benefits plan at all. The challenge for the employees is to fit their personal and particular health care needs, and the needs of their families, into the framework of the employers health benefit plan.  For example a family may have a child who requires more expensive orthodontic work than is allowed by their health care plan. This means that they have to come up with all the financing for the orthodontic work themselves.  They might be in a position to get an increase in pay, however, this money will be taxed prior to them spending the money on their healthcare.

How does this new health benefit plan help both employers and employees?  For the employer this health plan has a fixed expense which is deductible. For example the employer could decide to provide each employee with $1000 annual benefit.  In addition to the benefit the employer would pay a 10% annual fee to have the plan administered.  There are several benefits to the employer; the full cost of the plan is an deductible expense,  the employees receive it as a special perk of their employment, and the administration is incredibly simple and all handled online by the insurance administrator Preaxia. Finally, the employer also controls their costs as the plan does not increase in cost based on usage.

For the employee, they see the health benefit plan as perk to their job, the funding they receive is tax-free, and the biggest advantage is that the money is theirs and can be spent on any health service or product they may wish to have.  The money they receive is held in trust for them and if it is not spent can be carried forward year after year. This means that in the example of the family requiring orthodontic work that they could save up and pay entirely for the orthodontic work out of their plan.  In addition, because the plan is administered online, the employee can make claims through the Internet and have their funds electronically deposited into their bank account within 24 hours.

For your convenience we have set up a separate website,   https://hsa.preaxia.com/Ayoba  , where you can get further information and register for the program. You will be pleased to note that it takes only 15 min. to register and your program will be running.

Naturally, should you have any questions I would welcome them and be pleased to help you in any way I can.