Small business owners could better manage employee health expenses with Kibono

by Adam Niman

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When we think of disruptive innovations, we tend to think of new technologies, new ways to crowdsource and group-task solutions, and companies with radically different business models. But sometimes, disruption stems from a shift in perspective, a philosophical realignment which challenges more deeply entrenched ideas. This is the story of Kibono.ca, a company which asks you to think and act differently, not by deploying new technology, but through a commitment to transparency, understanding, and financial autonomy.

The traditional group benefits industry takes advantage of small business owners by misrepresenting their services.  it’s not helping people the best way possible, because it’s an archaic system rife with inefficiencies and hidden agendas.  The core issue lies in how benefits are presented and sold.

 

Group Benefits – What are they exactly?

The reimbursement of daily and routine medical expenses should be straightforward and transparent, but instead they are too often bundled with other insurance products to mask their true nature and cost.  Insurance companies add layers of complexity which makes it hard for business enrollees to predict fee increases, or see the real value, or lack thereof, in their plans, and that’s because these companies provide two fundamentally different services in their Group Benefits plans.

Catastrophic insurance protection – life, disability, and catastrophic medical expenses. Insurer takes premiums to shoulder the risk associated with events a policyholder would not feasibly be able to cover on their own.

Reimbursement of daily medical expenses – Insurers effectively facilitate an administrative service, whereby premiums are deducted from the employer, and used to reimburse employees when they have a medical expense that is covered under the plan.

The big problem is that these reimbursements generally have no basis in the idea of insurance. I think we can all reasonably and rationally agree, getting glasses, or cleaning your teeth, or getting a massage, doesn’t need to be “insured”. The risk associated with those events should not be in the same category as the risk associated with catastrophic events, which anything but routine.

 

The Inherent Design Flaw of the Group Benefits Industry

Most ‘insurance’ claims are for routine expenses, not insurance; most employees submit claims for drug, Dental, Optical and Medical expenses such as massage and physiotherapy, not Life or Disability claims. In the confines of a traditional group benefits plan, these routine claims are used to artificially increase plan usage and risk.

Kibono’s journey began with the realization that the traditional group benefits industry is designed to take advantage of small business owners via misrepresentation. Our goal is to empower everyday Canadians, particularly small business owners, to rethink their approach to my industry and divert their hard-earned money away from entities that don’t serve their best interests. We’ve been in the industry for more than a decade and our experience has alerted us to a perception gap between buyers’ expectations and the value they receive.  Kibono seeks to change this by building trust and by offering free education.  We do this all because truth and transparency matter,  especially in an industry made for your protection, and which could help grow your finances, while safeguarding the people who rely on you.

A Kibono Health Spending Account allows Canadian small business administrators to transform routine employee Drug, Dental, Optical and Medical expenses into tax-deductible, fixed-fee claims.  Unlike highly restrictive traditional benefit plans, Kibono offers unparalleled coverage of all CRA-eligible medical costs

Thousands of small-businesses prefer HSAs over traditional plans because Health Spending Accounts offer employers complete control over the cost of an employee health plan using fixed-fee claims, eliminating the risk of rising annual insurance premiums often bundled with routine benefits under traditional plans. This is optimal for employees submitting routine claims such as dental or eyeglasses, not insurance claims like life or disability.

 

How Kibono Disrupts the Group Benefits Industry

Kibono challenges the status quo with a platform designed to empower businesses to manage their own health spending accounts, transparently and efficiently. By removing the insurance middlemen from everyday transactions, we help businesses save money and give them the tools to take control of their benefits plans.
The reality is stark: financial institutions, in collusion with government policies, have constructed a system which perpetuates their dominance and profits at the expense of businesses and individuals. The lack of transparency and the bundling of unnecessary products are tactics to maintain this status quo.

At its core, employee benefits are essentially a tax strategy. When businesses pay their employees, it’s taxable to the employee and deductible for the business, with CPP, EI, and income taxes withheld at source. However, when employees are reimbursed for eligible medical expenses, it’s tax-deductible for the business and tax-free for the employee. That’s the essence of benefits—a tax service masked as a product.

Insurance companies, brokers, and the government have conspired to sell you this ‘product,’ creating contracts where they always come out on top. You pay the insurer hundreds, employees spend thousands, and if they spend too much, premiums go up. If claims are few, the insurer pockets the difference. It’s a business model designed for them to win. At Kibono, we are committed to exposing these practices and offering a better alternative. We believe that once you understand the true nature of your benefits plan and the unnecessary costs imposed by traditional insurance models, you can make more informed decisions.

In a time when financial resources are more precious than ever, with government overspending and economic pressure mounting, it’s crucial to reclaim control over every dollar. Our approach is not just about saving money; it’s about shifting the balance of power back to businesses and individuals, enabling them to thrive in an increasingly challenging economic environment. By partnering with us, businesses are not just adopting a new tool—they are joining a movement to redefine the relationship between financial institutions, government policies, and everyday financial transactions.

Find out how you can better manage your business health expenses by connecting with Kibono.ca, today.