One benefit companies can offer their employees that offers exceptional value without breaking the bank is life insurance. Often seen as a critical yet affordable addition to an employee benefits package, life insurance provides both employees and employers with significant advantages. Budget-Friendly Coverage One of the most compelling reasons life insurance is such a valuable addition to an employee benefits plan is its affordability. Group life insurance policies are typically much more cost-effective than individual ones. This allows employers to provide meaningful coverage for their employees at a fraction of the cost they might expect. Often, the premiums for group plans are subsidized or fully covered by the employer, meaning employees can receive solid protection without paying a hefty price. For businesses, it's a cost-effective way to enhance your benefits package while keeping expenses in check. Scalable and Flexible Life insurance is also highly scalable, meaning it can be tailored to suit the needs of your workforce, regardless of its size. Whether you have a small team or a large organization, you can offer life insurance coverage that fits your budget and meets the needs of your employees. This flexibility allows you to enhance your benefits plan without overspending. Adds Value Without Straining Your Bottom Line When compared to other forms of insurance or retirement benefits, life insurance offers a relatively low-cost option that packs a big punch in terms of employee value. By providing life insurance as part of your benefits package, you're giving your employees peace of mind that their families will be taken care of financially in the event of the unexpected. And for the employer, it's a relatively small investment that can yield long-term benefits in terms of employee loyalty, engagement, and retention. Ready to Enhance Your Benefits Plan? Want to learn how life insurance can fit into your organization’s benefits strategy? Book a meeting with an HMA advisor today to explore cost-effective, tailored options that will strengthen your benefits plan and support your employees' futures.

As a decision-maker responsible for employee benefits, attracting and retaining top talent is a priority. Offering competitive benefits is essential, and while traditional health insurance has long been the standard, more companies are now turning to Healthcare Spending Accounts. These accounts provide a flexible, cost-effective way to support employees' healthcare needs. A Healthcare Spending Account helps cover out-of-pocket expenses not included in traditional group health plans and supplement payments for partially covered services. It can also be used for deductibles, co-pays, dental and vision care, prescriptions, paramedical services, and medical devices—offering employees flexibility to meet their unique healthcare needs.. The HSA is a tax-free benefit The HSA is a non-taxable benefit, which means any reimbursement an employee receives is tax-free. By using your HSA for eligible expenses, you spend pre-tax dollars instead of after-tax income. This means your money goes further since you’re not paying taxes before using it, giving you full purchasing power. Eligible HSA Expenses and the Canada Revenue Agency (CRA) HSAs are designed exclusively for eligible health and dental expenses. While the list of covered items is extensive, some examples include: Dental Services Vision Care Medical Cannabis Crutches Fertility Treatments Hearing Aids Heart Monitoring Devices For more information about what can be claimed under the HSA, visit the CRA’s website on a regular basis as their list of eligible expenses may be updated at any time. Common types of claims Health or dental claims that have already been maxed out on your benefits plan Expenses not covered by your health and dental plan for you and/or your eligible dependents. Example: Orthodontics Extended Health and Dental premium repayment. If you offer a HSA to your team, they may choose to buy an individual Health and Dental plan and use the HSA to supplement the premium. Popular ways to use an HSA Example: Greg is single and has extended health coverage under his group benefits program and receives $375 in his HSA. During the HSA year, Greg spends $250 on a new pair of glasses and submits a claim under his plan. His plan covers glasses for up to $200 every 24 months. He uses HSA credits to cover his out-of-pocket costs: Amount submitted to benefits program: $250 Amount paid by benefit plan: $200 Expense automatically flows through to HSA: $50  Total annual HSA credits: $375 Amount paid by HSA: $50 Remaining HSA credits: $325 With his HSA credits, Greg is fully reimbursed for the cost of his glasses, and he still has $325 in credits to use for other expenses. Without the HSA, Greg would pay $50 (in after-tax dollars) for the expense not covered by his group benefits program. Incorporating a Healthcare Spending Account into your benefits offering is an effective way to enhance your employees’ healthcare coverage while keeping costs under control. With its tax-free advantages and flexible use, an HSA can be a valuable tool in attracting and retaining top talent. If you’re ready to explore how an HSA can work for your business, reach out to one of our benefit consultants today!

Good benefit plans draw in and keep high-quality employees. Providing dental coverage for employees and their families is crucial to staying competitive. However, the expenses associated with this coverage continue to trend upward for employers. The dental fee guide provides recommended fees for various dental procedures and services. Insurers use it as a benchmark for determining acceptable reimbursement levels for dental care. Each province has a dental association that sets their fee guide for the year. In recent years, these costs have grown, leading to higher claims and increases in premium or funding levels at renewal. Although costs have risen across the board, the fee increases for 2024 are more reasonable than those of 2023 and not as high. Below are the fee guide increases announced for 2024 by the dental associations:

Understanding the nuances between retirement options like Deferred Profit Sharing Plans (DPSPs) and Group RRSPs is essential for maximizing benefits while minimizing costs. Below we explore the differences, highlighting the advantages of modernized group retirement benefits that prioritize accessibility and low fees, ensuring employees can confidently plan for their futures.

Imagine this: a protective net cast over our homes, cars, health, and lives to weather life’s storms. So why not drape that same shield over our most significant debt – the mortgage? Mortgage insurance has its appeal, but taking a closer look, term life insurance steals the spotlight when life throws us curveballs.

Businesses use benefit plans to attract and retain top talent. Offering dental coverage for employees and their families is vital to remain competitive, but costs continue to rise for employers. Each province has a dental association that sets their fee guide for the year. In recent years, these costs have grown, leading to higher claims and increases in premium or funding levels at renewal. The government of Canada has announced a federal dental plan with the goal of covering all uninsured Canadians earning under $90,000/year of family income by 2025. This program is starting in 2023 for uninsured Canadians under 18, persons with disabilities, and seniors within the income requirements. This plan won’t help reduce dental premiums for employers as the plan only pays to uninsured individuals. Employers should continue covering their staff for dental to remain competitive in the talent pool. If the federal dental plan expands its limits enough, employers may choose to focus their benefit dollars towards other employee compensation in the coming years. Over the last five years the dental fee guide has increased, with the largest jump coming in 2023. Dental services are billed at 20%+ more than five years ago, leading to claims rising and higher costs for employers. Here is the average increase in cost of services offered for Ontario over the last five years: 2023 Ontario Average Increase: 8.5% 2022 Ontario Average Increase: 4.75% 2021 Ontario Average Increase: 4.6% 2020 Ontario Average Increase: 1.27% 2019 Ontario Average Increase: 4.19% As prices continue to rise, it’s essential for businesses to use a cost-effective solution for their benefits package. One option is to self-insure the dental portion of your plan (called ASO or Administrative Services Only). There is no catastrophic risk associated with dental, as plan limits, such as $1,500/year per member, are set in the plan design. ASO essentially works as a pay-as-you-go system. Rather than setting a Single/Family premium rate for the year, you only pay claims, adjudication fees and taxes. Compared to an experience rated dental benefit, built-in fees can be significantly cheaper on an ASO platform. Another cost-effective solution, without self-insuring the dental benefit, is to use HMA’s 3G profit-sharing plan. This plan uses the same renewal calculations as any experience rated health and dental plan, but gives back the profit an insurance company would normally receive when claims come in lower than the expected Target Loss Ratio (TLR). For example, if your TLR is 75% and you pay $10,000 as a dental premium for the year, you are expected to claim $7,500. If claims come in below the $7,500 you can receive the difference back through the plan’s profit sharing and loyalty dividends. While higher dental costs are inevitable with the raises to the Fee Guide, using one of the solutions above can help mitigate some of the costs. Your broker should be bringing solutions to the table. Send us a message today for a full no-pressure review of your benefits plan.

Your business needs great employees to grow, yet the present talent shortage highlights the necessity for effective employee recruitment and retention strategies. A group benefits plan can be a highly effective recruitment and retention tool for employers. There are many methods to make a business more appealing, and here are three reasons why a benefits package can help you attract top talent. Benefits Show You Care A strong benefits package is a great way for a business to demonstrate its care for its employees. When employees feel valued, they are more satisfied with the job, committed to their employer, and motivated to produce quality work. A prospective hire will get a sense of the workplace culture through the company’s benefits package. Promoting wellness improves morale and promotes a great workplace culture, something that individuals are starting to value more when looking for a company to work for. Benefits Can Provide More Value Than a Higher Salary The premiums paid by the employer for a benefits plan are often a tax-free benefit to the employee, unlike an increase in pay that is subject to income tax. When the employee uses their benefits, they can cover costs that would have normally been paid for with their after-tax dollars. On top of tax efficiency, having expenses covered that would have otherwise been paid for out of pocket contributes to financial stability for an employee. This enables individuals to ensure their and their families' well-being without jeopardizing their financial situation. An employee who has previously received benefits from an employer is likely to be aware of the value they offer and will appreciate their significance within the overall compensation package. Not Every Business Is Offering a Benefits Plan Similar to how a business could scan through the resumes of potential employees looking for specific skills or qualifications, a job seeker might scan job advertisements looking for a business that provides a benefits package. Top talent may not even consider working for your company if you don't have a benefits plan in place. Having a group benefits plan helps your business stand out from the competition. To learn more about an employee benefits package, speak to an HMA advisor today . We are happy to help.