David Imrie

 Tags: Health Benefits

Health insurance is one of the costliest expenses a business pays. Premiums are set by insurance companies, which base those numbers on meetings they have with hospitals, drug companies, and medical personnel. Each year, the costs of premiums rise, even though coverage remains the same. Health benefit premiums are on the rise again, and this year, it’s partly because of the minimum wage hike in Ontario.


Download our free guide on all the health benefits your employees need and  want.

The Rise of Premiums

Running your own business is expensive, and you always try to save money where you can. One thing you can’t skimp out on, however, is health insurance for your employees. Good health benefits are one of the reasons employees stay with a company. They’re also an incentive when you’re trying to recruit top talent. The problem is that many companies can’t afford or struggle to afford the health benefit premiums that rise each year. Some of the contributing factors to the rising cost of premiums are:


New technology, which makes our lives a lot easier but is also really expensive. Someday, we’ll ideally get to a point where having new technology doesn’t immediately mean an increase in health care expenses.


Rising costs of prescription medication occur on an ongoing basis. Pharmaceutical companies are in business to make money, and to keep ensuring they do, they raise costs yearly.


Fraud is also a reason premiums rise. When people commit fraud, they’re stealing from everyone because companies have to recoup their losses, which is done by charging more to everyone else.


The Ontario minimum wage increase is affecting small and large businesses alike. To offset some of the costs of the increase, other costs like premiums are rising to ensure insurance companies are making the same amount of money they were before.


These are only some of the reasons premiums are on the rise, but it can be frustrating for small businesses that are just trying to provide good health benefits without going broke. It’s because of this struggle that small businesses are turning to health spending accounts.

Health Spending Accounts

Health spending accounts are an alternative way to provide health benefits to your employees without breaking the bank.


Firstly, there are no health benefit premiums. You don’t have to worry about premium payments when you switch to health spending accounts. Secondly, you get to decide how much money you put into each employee’s health spending account. You have complete control over how much money you want to spend, and so you no longer have to worry about having enough money for health benefits.


Third, your employees receive greater benefits than they would with traditional health benefits because as long as the medical expense is CRA approved, it can be paid for with the health spending account. With health benefit premiums on the rise, it’s no wonder so many employers are switching over to health spending accounts.


When you’re a small business owner, every dollar counts. Why would you spend your hard-earned dollars on traditional health benefits with ever-increasing premiums, even though the coverage offered remains the same? Switch to a health spending account to give your employees better coverage, to save on the cost of premiums and wasted dollars, and to gain more control over how your money is being spent. It’ll be one of the best decisions you ever make.


How to Give Your Employees a $1500 Raise at No Additional Cost

David Imrie

Dr. David Imrie founded RHSA Canada in 2009. Dr. Imrie is a medical doctor and former health insurance professional who has a passion for helping small businesses reduce their healthcare costs. As an executive in the insurance industry, he was shocked to find that so many common healthcare services are covered only partially by most insured plans, when employees were entitled to 100% coverage for all prescription drugs, dental services, and other healthcare expenses. Since leaving the insurance industry in 2001, Dr. Imrie committed to using newer technology to develop a better alternative program for small business health benefits.
Find David Imrie on: