In Canada, health care is delivered through a publicly funded health care system which is mostly free and has most services provided by private entities. However, many companies still like to provide small business health benefits to their employees, though mostly in the form of supplemental health care coverage or a retirement account like a 401K.
In most of Canada, health care costs are paid through funding from income taxes. However, there are some health care spending accounts for small businesses which provide benefits for employees of small businesses. The vast majority of businesses in Canada are made up of anywhere from two to 100 employees, so providing health benefits for small businesses is more reasonable for some companies than others.
Health spending accounts are different than health saving accounts, which are prevalent in the United States. Health savings accounts were designed for small business to provide much better benefits for employees and better premiums for the business. Health spending accounts are tax-advantaged accounts which provide benefits to employees of Canadian companies.
Just under three quarters of small business owners in Canada are concerned about the cost per employee of small business health benefits plans. However, it is wise for employers to look into the options for their employees, because there are some cost-efficient plans that can help to provide coverage for employees, which improves productivity and makes employees feel appreciated. Great references here: www.myrhsa.com