What You Need to Know
We have seen our clients toiling with the same problem and they fall into one of two categories:The first category has a group insurance plan and is continually faced with cost increases and reduction of eligible benefits. The second category doesn't have enough employees to obtain quality group coverage, yet they spend significant amounts of their after-tax money on health care related benefits without the ability to deduct these expenses.
What Really is a Health & Welfare Trust (HWT)
Simply put, it is a three part 17-page legal document and a Trust Bank Account. Contributions made to the trust are tax-deductible by the Corporation. Personal health care costs that would otherwise be paid with after-tax dollars may now be funded through a Health & Welfare Trust.Current B.C. Health Care Reality
In the last three years alone, we have seen massive cuts to medical services by the B.C. & Alta Governments, a few examples: - Eye examinations are no longer covered.
- PSA blood tests for men are not covered.
- Mammograms are only done now on a bi-yearly basis.
- Physiotherapy and chiropractic treatments are also not allowed.
What are the Costs
A one-time (non-recurring) set up fee of $200. After set-up, most clients estimate what they will spend and fund the plan monthly. These contributions are usually assessed by the client on a quarterly basis. If there are low, or large expenditures anticipated in the future, the contribution can be decreased or increased at any time.Claims are paid on a cost plus 10% basis. Any funds not used are left in the Trust Account for future needs. Any funds contributed in a given year are deducted by the Corporation even if they are NOT used for a claim. Some of our clients are using a Trust as a type of RRSP for future health care needs.
