At C.V. Benefits, we know there’s a lot of jargon associated with employee health and benefit plans. Let’s face it, this stuff can be confusing. And as a business owner, you really don’t have time to micromanage all of this. You just want a plan that works; something to enhance the health and wellness of your workforce, attract and retain good employees, and improve your bottom line.

Whether you are a business owner/operator or an individual or family, C.V. Benefits can provide a plan for all people to ensure your health is covered. Health benefit plans for businesses can be custom tailored to suit your specific needs, while families and individuals can choose from a variety of options.

C.V. Benefits offers a Self-Insurance Advantage; a benefit package that provides flexibility, transparency and cost savings for business owners.

SELF-INSURANCE

Also known as an “Administrative Services Only” (ASO) Plan, an employer provides health or disability benefits to employees with its own funds.

Employers can mitigate the financial risk of self-funding claims by purchasing stop-loss insurance from an insurance carrier.

CV Benefits provides assistance in claims adjudication and payment, access to preferred provider networks, prescription drug programs, utilization review and the stop-loss insurance market.

ADVANTAGES

• Huge savings to the employer
• Flexibility to create a plan that best suits employee needs
• Elimination of premium taxes
• Transparency
• Easier for the employer to budget for future years
• CV Benefits takes care of all administration
• CV Benefits supplies drug and dental cards; claims can be done electronically

COST PLUS

Let’s say one of your employees’ children requires a $3,000 orthodontic treatment. The firm’s group insurance policy covers basic dental treatment only.

Our plan requires $3,000 plus a 10% administration fee and GST, for a total of $3,315. Also, assume that the business is paying a 22% corporate tax rate.

Assume the employee’s personal tax rate is 40%. Without our plan, the employee must earn $5,000 to have $3,000 available to pay the expense.

With our plan, the firm pays the expense through CV Benefits Inc. with $3,315 in corporate funds.

The $3,315 is tax-deductible for the business, while the employee receives $3,000 in non-taxable benefits. And at a tax rate of 22%, the net cost to the business after tax is only $2,590.

So instead of spending $5,000 in after-tax dollars, the employee’s cost is reduced to $2,590 and covered by the business, while the employee receives a $3,000 tax-free benefit enhancement, and the expense is covered by the employer in the most tax-effective manner possible.

HEALTH CARE SPENDING ACCOUNT

Health Care Spending Accounts are most commonly used to enhance regular employer-sponsored plans, but can also be used on a stand-alone basis as a total replacement to conventional plans. By providing employees with an account of flex credits, health and non-health related expenses which may not normally be covered under a conventional plan can be reimbursed. An employee can use pre-tax dollars to pay for an expense that would normally be “out of pocket”

ADVANTAGES

• Tax effective; uses pre-tax dollars to pay for covered expenses
• Cost-effective
• High valued by employees, giving them better control over their benefits
• The employer can offer new types of health-related benefits without being locked into potentially expensive benefits
• Benefits are delivered tax-effectively
• Reimbursement level is 100%
• Employees can choose to allocate money to Health Care Spending Account or to a group RRSP (which can be set up through CV Benefits)

We would love to sit down with you and go over these options in more detail. Give us a call or send us an email, we’d be happy to set up an appointment.