A New Way of Thinking About Employee Benefits

Who is HUB Financial?

• • • • • •

Subsidiary of HUB International Ltd. (general insurance agency) Gross revenue for HUB International more than $400 million in 2005 HUB Financial has 7 offices in major cities across Canada One of the largest health and welfare trust providers in Canada (approximately 6000 trusts in BC alone!) Very experienced in administrating trust accounts and claims Working hard to make the process as easy as possible

• Online plan administrator access • Pay claims online • All forms available online • Three funding methods

Overview of Flexsave

• • • • • •

Method to have health and dental expenses paid by a business without paying a premium Must be administered by an independent trustee Often completely funded by the employer Potential alternative to traditional options:

– Out of pocket – Individual health insurance – Employee benefits plan

One time set-up fee: $250 Expenses plus fees/taxes paid/deducted by business:

• 10% (of claim) • 12% HST (of admin fee)

Flexsave:

Flow Chart for “pay as you go” 2 3 3 ABC Corp Employee with Claim 1 1 4 1. Employee has a $1000 dental claim and submits claim to Hub 2. Hub invoices the company for $1112 (claim plus admin and taxes) 3. Company pays Hub 4. Hub pays employee original $1000 The result – Company pays once and has the write-off, the amount of the claim goes back to employee tax free

Who is FLEXSAVE Designed for?

• • • • • Employers who are tired of paying

increasing

insurance premiums every year Businesses who have been

declined

for employee benefit coverage Owners who want more

control

over their cost and spending

Sole Proprietors, Partnerships and Incorporated Professionals

that have nothing in place Employers that want to add

additional benefits

to key personnel to top up their traditional group insurance

How Much Does Your Healthcare Really Cost?

• •

$50k Net Income $1000 Dental Bill

Income Tax $422 After-tax Dollars $1000 Required Earnings from Business

Have Your Business Pay For It

•

Use FlexSave to transfer the cost to your business and write it off!

Admin Fees and Taxes $112 Business Deduction Amount of Claim $1000

WHAT’S COVERED?

Allowable Expenses

Partial Expenses List (for more details refer to CRA IT519R2)

• Includes All

Medical

and

Paramedical

practitioners • All

Dental

Procedures, specifically Orthodontics and Major Dental • All

Prescription Drugs

• Diabetic supplies, pre/post natal care, private hospital •

Vision care

: Eyeglasses, exams & laser surgery •

Medical equipment

: braces, crutches, walkers, hearing aids, orthopedic shoes • Physio, chiropractor, massage therapy (RMT) AND MUCH MORE!

Medical justification recommended for a service not specifically mentioned

What is the Set up Process?

1. Decide which class of employees you want on the plan? (All full time staff should be included) 2. Decide what maximum you wish to apply to each employee class (eg. office vs manual labor) 3. Decide if you wish to add on stop/loss catastrophic coverage (highly recommended) 4. Fill out application package

How Do I Submit A Claim?

• • • • •

Go to www.hubfinancial.ca

Click on “Forms” button (on the right) Click on “BC Claims Form” link Type in the fillable PDF and print it off Mail the claim form to HUB, along with original receipts

WHAT IF I AM A SOLE PROPRIETOR OR UNINCORPORATED?

Private Health Spending Plan PHSP

Revenue Canada allows for unincorporated businesses to run an HWT, however, it must follow the following guidelines:

1. Maximums set out – if no employees

• • • $1500 per year per adult $750 per year per dependent child Business owner can combine family total and apply maximum to any family member

2. Maximums set out – with employees

• Maximum is lowest amount offered to the lowest employee

1. Element of Insurance REQUIRED

• Must purchase Emergency In Province/Out of Province Coverage

Emergency In Province/Out of Province medical (stop/loss)

Additional coverage that provides protection for employees should something catastrophic happen medically either in province or while traveling Consists of 2 components :

i) Travel medical component ii) Stop/loss catastrophic

• Requirement for UNincorporated businesses to provide element of risk for Revenue Canada (CRA)

Note: This plan is administered by AXA Assurance Inc.

1. Travel Medical

NOTE :

travel component is completely separate from catastrophic portion of stop/loss and applies different limits such as: •

NO deductible

•

60 day out of country/province limit

•

$1,000,000 maximum

2. Catastrophic Element

•

Shifts a portion of the risk/expenses to an insurance company should an unexpected accident or major illness occur

•

Covered expenses/categories

• prescription drugs, • semi-private hospital, • private nursing, • air ambulance, • and paramedical practitioners • Durable medical equipment •

Deductible: $1500 per person, per claim

•

Annual maximum:

• $25,000 per covered expense category • $125,000 combined overall maximum per year

Cost of Stop/loss

Single: Couple: Family: Monthly $8.75

$16.65

$21.50

Annually $100 $190 $245 Deductible $1500 $1500/person $1500/person “For less than one meal a month, I can get annual travel insurance and peace of mind for me and my family!”

Contact Info

Broker Contact Details

Walter Morelj 250-860-1821 [email protected]

For admin-related inquiries, email: [email protected]