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!
Watch our video about HCSAs for a deeper understanding of how they work!
More on Custom Benefits Plan Design:
- Sanofi Healthcare Survey Reveals Canadians Want More Flexible and Integrated Health Benefit Plans
- The Employer-Employee Relationship Is Changing. Is Your Benefits Plan?
- Your Benefits Plan Has a Drug Problem – It’s Time for an Intervention.

- The Benefits Trust Is Celebrating its 25th Anniversary - January 21, 2019
- Season’s Greetings! See Our Holiday Hours - December 17, 2018
- Selling Benefits Plans to Religious Organizations, Not-for-Profits, Charities, and Other Special Interest Groups - February 23, 2018
- OHIP+: New Benefits for Children and Youth Coming January 1, 2018 - December 19, 2017
- Happy Holidays! See Our Seasonal Hours - December 11, 2017
- Battling Benefits Fraud: How Advisors Can Help - October 26, 2017
- Common Benefits Advisor Problems: Pricing Pandemonium - October 4, 2017
- Buyer Beware: Choosing a Third Party Administrator for Benefits Plans - September 21, 2017
- The Benefits Trust App: Features Update - June 13, 2017
- Common Benefits Advisor Problems: Plan Design – Don’t Be a Commodity [Case Studies] - May 25, 2017