Small and mid-sized business owners often believe their employee benefits plan options are limited, particularly because traditional plans offered by large insurers provide little flexibility.
However, with a hybrid benefit plan design business owners can maintain the key elements they like in their traditional plan while introducing a much greater level of flexibility!
What Is a Hybrid Benefit Plan?
It’s a balance between a defined benefit plan and a defined contribution plan. Traditional plans offer a defined benefit. Healthcare spending accounts (HCSA) offer a defined contribution.
By combining them, you can have the familiarity of defined benefits (such as prescription drugs, dental, etc.) with the flexibility and cost stabilization of an HCSA (which covers any Canada Revenue Agency approved health expense).
As you can see, a hybrid plan offers the advantages of both types of plans, resulting in a very practical and cost-effective solution. Also, the business owner can choose where they would like their plan to fall along the defined benefit – defined contribution spectrum.
It’s a truly customized plan!
Learn more about hybrid benefit plans and how they work in our explanatory whiteboard video:
The Benefits Trust helps business owners build custom benefits plans that suit their specific needs. Get in touch with us today!
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