Name: Perlinger Group Benefits
Address: Calgary, AB
Telephone: 1-877-217-7829
Price range: $000 - $000

With 90% of insurance accessed in Canada is through Group insurance, employers recognize the value that comes with health and dental plans for companies.

But while the advantages of obtaining group health benefits plans for small businesses are well known, deciding on a plan for your small business can be challenging.

You have to consider several factors, such as your budget, the number of employees in your group health, the needs and requirements of your employees and what would you like to provide your employees.

Even then, it can be challenging to narrow down which health and dental plan is best. With so many options around, it can be overwhelming to choose one that works for your small business. Listed below are some of the most common options available.

The Different Options For Health & Dental Plans For Small Businesses In Canada

Basic Insurance

Basic insurance, also known as traditional health insurance, is the most basic of all plans. For small businesses, the option is very familiar. You pay a monthly premium to an insurance company in exchange for the basics of your insurance, including life insurance, health insurance, as well as accidental death and dismemberment. Depending on who your insurance provider is, your coverage will vary.

Flex Plans

Also known as “cafeteria plans”, a flex plan allows employees to select the benefits that will be most useful to them. They can choose from more expensive policies or sign up for the most basic coverage. This allows each employee to select their own type of medical coverage, as they will most likely use the benefits they have assigned for themselves.

For business owners, a flexible benefits plan helps by creating options within an employer-defined budget. You begin by setting a budget that fits your business. Employees then choose only the benefits they desire, with employers not paying for the benefits they don’t use or want. During the benefits selection process, employees will see the total cost for their benefits, which drives increased appreciation for your business’ contribution.

The only downside to flex plans is that they are difficult to administer and to communicate with the team. It also requires extra work and can usually lead to higher premiums, especially if employees select more expensive plans or services.

Modular Flex Plans

Modular flex plans are one of the most popular options these days for smaller businesses. Similar to traditional health coverage options, modular flex plans provide coverage for specific benefits, such as vision, disability, and dental insurance in Canada.

The significant advantage with modular flex plans is that it is made up of a package of several different benefit bundles that can be used by employees to select a benefit-pack of their choice.

With modular flex plan options, you can also get health spending accounts, wellness accounts, or even RRSP contributions.

Health Spending Account (HSA)

According to Sanofi, employees that have access to wellness programs (63%) and health-care spending accounts (60%) are more likely to be satisfied with their health benefits plan compared to those without those benefits. This statistic highlights the demand for employers to include these services to their policies. But what are the differences between Wellness Spending and Health Spending Accounts?

Health Spending Accounts (HSA) cover medical services that impact the health of employees. It is why their HSAs include dental insurance, prescription drugs, physiotherapy, and vision. Significantly, an HSA is a tax-free allowance. All expenses are 100% tax-deductible for businesses, and employees do not pay tax on their purchases.

A Wellness Spending Account (WSA) covers services that are only concerned with wellness and health services, as opposed to medical services. They include more health-related services, such as gym memberships, nutrition advice, over-the-counter supplements, personal development, courses and textbooks, mental health and therapy. A WSA is added to an employee’s taxable salary, as opposed to an HSA, which is tax-free dollars. When the reimbursement of the WSA takes place, the expense will be added to the employee’s total taxable income.

Wellness Spending and Health Spending Accounts can be included in modular flex plans or separately on their own. It varies from policy to policy.

Find The Group Health Plan That Work For Your Small Business

Finding a plan that works for your employees can be complicated, but not if you get help. It would help if you spoke to an insurance provider for more information on obtaining a group health insurance and a dental plan for your small business.

Perlinger Group Benefits has been offering exceptional group benefit plans since 1992. Our goal is to provide the best group health insurance plans to meet your business’ needs, regardless of the size of your business. We make it affordable and easy to get access to comprehensive benefits plans. Contact us today: Direct Line 403-217-5560 | Toll-Free 1-877-217-7829 | Email [email protected].

Group health insurance plans are pivotal for the running of any company. In fact, according to the Canadian Life and Health Insurance Association (CLHIA), up to 90% of all insurance premiums are paid to purchase group plans. This statistic highlights the commitment of companies towards employees in ensuring they receive adequate medical coverage and stay healthy. Companies themselves also experience benefits, such as improved employee morale, productivity and the ability to attract and retain high-quality employees.

It’s no wonder offering health insurance can strengthen your business. Of course, all business owners across Canada think about the cost of a group health insurance plan.

Here’s a look at what you can expect to pay for group health insurance in Canada and what affects the final cost.

5 Factors That Affect The Cost Of Group Health Insurance In Canada

Size and Health of the Group

The total number of employees in your group plan will impact how much it will cost your business. It can also include employee family members who decide to opt-in to the policy. The larger the group, though, the more it can help lower your premiums, as it is spreading the health risks across the entire group.

However, the overall health of the group can affect the premium. If there are employees with specific pre-existing conditions, it can affect the cost of the coverage – or in some cases, seeing the employee being denied. It is, therefore, vital to know how your employees’ overall health might impact your premiums.

Plan Usage

All those visits to a doctor can add up over time. More claims from your employees translate to higher premiums. If your employees use your health insurance plan heavily, the cost will increase. On the other hand, if there are fewer claims made, the price will decrease.

However, don’t be threatened if your employees are using your plan more than expected. A higher plan means your employees like your plan and are getting value out of it.

Type of Occupation

Different lines of work carry different levels of risk. If you are providing coverage for employees in the gas or oil industry, you might have to pay more because the risks of working in such as industry are higher.

If your employees work in an office, the premiums might be lower as there are fewer accidents in an office environment. Your insurance provider may adjust your rates depending on the general occupation of your workers.

The Group Health Insurance Plan You Choose

With so many different types of group health insurance plans, business owners can choose what will suit their employees, and business, best. The cost, though, can vary significantly based on the benefits you decide to include in your plan and the amount of coverage you choose to provide.

Basic insurance can include the likes of prescription drugs and supplemental healthcare expenses. In contrast, mid-and-top-tier plans can consist of emergency travel medical, dental insurance across Canada, and even Health Spending Accounts. The more services you include, the more comprehensive the coverage, the more you can expect to pay for your group health insurance policy.

However, there are many flexible options available, such as modular flex plans, which help businesses adjust their policies when they gain or lose employees, as well as if they want to customize their coverage.

Your Employees’ Contributions

Remember that businesses don’t need to pay for 100 percent of the premiums. Many plans include employees contributing to medical expenses, which helps lower the cost of your premiums. For example, the policy can cover 50% of the service or even 75%.

Sharing costs with employees is acceptable because it helps them get the health insurance they might not otherwise be able to get. Paying a portion of the costs of a benefits plan is better than not having any benefits.

The Cost Of Group Health Insurance In Canada

According to a study by the Conference Board of Canada, the average cost of providing benefits for employees was $8,330 per full-time worker. At the same time, AGA says that “the average annual premium for a group insurance plan normally ranges between $1,500 and $4,000 per employee“.

The differences in fees further highlight that group health insurance plans vary significantly from one company to the next, as well as the costs.

All these above factors can contribute to the overall cost of a group health insurance plan in Canada. Only by assessing the status of your business can you create a group health insurance plan that benefits your employees and fits into your budget.

It is advisable that you speak to an insurance provider for more information on obtaining a valuable group health insurance plan in Canada.