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 were $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.
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
| Benefit | Monthly 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]).
Level 3
• Levels 1 & 2, plus:
• Extended Health Coverage at 50%
| Benefit | Monthly 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
| Benefit | Monthly Premium |
|---|---|
| Life Insurance | $178.25 |
| Dependent Life | $54.13 |
| AD&D | 102.30 |
| 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.
