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.
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].
