Used to financially compensate an individual due to a catastrophic or un-foreseen circumstance. Think Disability Insurance or Life Insurance. If you have a stroke and are no longer able to work, Disability Insurance would financially compensate you.
In reality, these traditional plans simply are a reimbursement program that have ridiculous and unfair limits on what you can claim, how often and will always leave you paying additional out-of-pocket costs for the un-covered portion.
These are routine medical expenses commonly incurred such as Drug, Dental, Vision and paramedical services like Physiotherapy. Traditional group health insurance companies will offer these “extended” benefits for an additional premium.
Extended Health Benefits:
These are routine medical expenses commonly incurred such as What about other Health & Wellness costs such as Chiropractor, Massage, Physiotherapy etc.
Traditionally these are bundled and sold as health "insurance" when in reality, the insurance companies create limited lists of allowable expenses with specified dollar limits each year. Once you incur these costs, they will reimburse you a portion to you, assuming you met the criteria.
Does this sound familiar?
ABC Traditional Health Insurance Co. will reimburse you 70% of your Dental expenses for the first $575 to a maximum of $400. This means you have to pay your usual monthly premium ($80 - $120 per month) plus $175 out-of-pocket to get $400 worth of benefits.
What if your dental bills accumulate more than $400 in a year? You must now have to pay out-of-pocket for all of those costs. So much for your health “insurance” ?
What about other limits?
ABC Traditional Health Insurance Co. will reimburse you $150 for Vision Care every two years. With prescription glasses typically costing $600 - $1,000, this $150 reimbursement does not seem very fair and leaves you paying extremely high out-of-pocket charges.
What about other Health & Wellness costs such as Chiropractor, Massage, Physiotherapy etc.?
ABC Traditional Health Insurance Co. will reimburse you $20 per visit for a maximum of 20 visits per specialist. With the average 1hr massage costing $100 - $120, this leaves you paying an additional $80 - $100 out-of-pocket each visit!
It is evident that traditional health insurance companies use extended health benefits as a way to convey a feeling of extra health "coverage". In reality, these "benefits" are highly restrictive and leave you paying significant out-of-pocket costs in addition to your monthly premiums.
This is not fair.
A Kibono HSA or Health Spending Account is designed as an alternative or supplement to traditional health insurance plans. Each plan member has a designated amount of money to spend on any eligible medical expense recognized by the CRA.
If your employer provides you with $3,000 a year in a Kibono HSA, you could spend that entirely on prescription glasses, or 30 massages or laser eye surgery. You decide what is best for you and your health, not us! Kibono provides members with maximum freedom and absolute certainty for business owners (plan administrator) as these limits are known with no other surprise fees or rising premiums.
A Kibono HSA is:
Flexible – Any medical expense recognized by the CRA is eligible. This list is far more extensive than any list a traditional health insurance company will allow.
Cost Effective – every $1 claimed becomes 100% tax-deductible to your business. Fast & Simple – Setup a Kibono HSA in minutes and begin claiming same-day! No waiting periods.
Certain – Kibono is entirely pay-per-use. No claims = no fees. You know exactly what your maximum annual health costs will be each and every year. No surprises or rising premiums to deal with!
Founder, CTO Kibono