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].
