HSA Plus – Three Levels of Coverage

Example: Company A has been a client of Cost Efficient Benefit Plan since 2012. In 2019 they had 31 employees on our level one, the private health services plan. Total employee claims in 2019 was $27,000, being 40% of their offered allowance. The total cost including administration fee and GST was $28,417.50. Company A approached us for quotes on traditional insurance group plans. We were able to offer two different packages (levels 2 and 3), as well as a traditional group quote, as outlined on the following pages.

Man: Before discovering HSA Plus, I had never thought we could ever afford a health spending account.

Woman: With our initial setup fee of $100 in 2012, and with setting the limits for each employee according to our budget, it's been a great way to provide coverage!

Level 1 – The Stand Alone Health Spending Account

• Low 5% administration fee
• One time enrollment fee: $100 plus gst/hst
• No additional cost to enroll employees
• The owner sets the limits for each employee
• Processing time is “in today, out tomorrow”
• No monthly premiums; pay as you go
• All costs are 100% tax deductible to your corporation and tax free for its employee(s)

Flexible Administration for your plan:
• Company sets coverage limits for employees
• You choose if a company contact person or employees may submit claims
• Online payment option for company
• Direct deposit for employees


Level 2

• Level 1, plus:
• Life Insurance
• Dependent Life
• Accidental Death & Dismemberment
• Long Term Disability

BenefitMonthly Premium
Life Insurance$206.15
Dependent Life$62.59
AD&D$117.80
LTD$977.19
Total$1,363.73

For Company A, the annual cost for Level 2 is $44,782.26 ($28,417.50 + [$1,363.73 x 12]).

Woman: Here we can see the different levels, with examples of quotes for our company, and our company has 31 employees.

Man: I am interested in Level 3. It is much more affordable than I thought it would be.

Level 3

• Levels 1 & 2, plus:
• Extended Health Coverage at 50%

BenefitMonthly Premium
Life Insurance$192.20
Dependent Life$58.31
AD&D$110.05
LTD$910.78
EHC 50%$1,208.33
Total$2,479.67

For Company A, the annual cost for Level 3 is $58,173.54 ($28,417.50 + [$2,479.67 x 12]).


Traditional Group Plan Coverage

BenefitMonthly Premium
Life Insurance$178.25
Dependent Life$54.13
AD&D102.30
LTD$1818.48
EHC$2,146.56
Dental$2,405.51
Total$6,705.23

Annual premiums for Company A for traditional group benefits is $80,462.76.

Man: So, with the traditional group plan, your annual cost is $80,462 even if you don't use the coverage?

Woman: That's right. Level 3 has the same coverage as a traditional group plan PLUS everything CRA accepts. The insurance premium of $29,756 (2,479.67 x 12) only increases when additional coverage is needed.

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