Canada is one of the few countries in the world that provides universal healthcare.
Canada’s healthcare system covers individuals with basic needs, such as doctor visits and emergency care. If you live in Canada as a citizen, temporary or permanent resident, you are qualified to receive this coverage. It means that if you have a medical emergency, you don’t have to worry about how you’re going to pay for it.
However, does that not mean that everything healthcare-related is free. Far from it. There are plenty of healthcare services that require payment, or private insurance coverage, including:
- Prescription medications
- Dental care
- Vision care
- Physiotherapy
- Ambulance services
According to the Canadian Institute For Healthcare Information, private funding amounted to 30% of Canada’s total health expenditures, which reached $264 billion in 2019. The high number highlights the importance of getting private healthcare insurance to cover non-basic healthcare.
However, the average Canadian household spends $4000 on private insurance premiums a year, which can be substantially expensive for many individuals. It is why Canadians rely on their employers to provide them with additional healthcare coverage – particularly group health insurance.
As an employer, providing coverage can prove beneficial for both employers and workers. And despite concerns about the cost of providing health insurance, it is not as expensive as it seems.
What Are The Benefits Of Employee Group Health Insurance?
Cheaper Than Individual Packages
Financially, group health insurance plans are designed to be more cost-effective for businesses. Instead of providing individual coverage, group health packages are less expensive for everyone involved. More so, employers can provide more coverage within a group insurance plan as opposed to personal ones, such as including Health Spending Accounts and Wellness Spending Accounts, and group retirement plans.
Create a positive work environment for employees
Happy employees are employees that work hard for the company. It’s why providing them with coverage will increase their commitment to your business. By offering group health insurance plans, employees appreciate the company, feel valued and respected, and will want to stay in the company.
Attract Quality Employees & Retain Them
Group health insurance is a fantastic attraction for employees. It’s a way to bring in top-tier workers, and most importantly, retain them for the long-term.
Maintain Productivity
With the option of receiving healthcare benefits, employees will seek treatment quicker than before, ensuring they return to work faster. That change can make a significant impact on your workplace’s productivity and resources.
Tax Offset
Providing group health insurance also provides both you and your employees with eligible tax offsets. Rather than paying employees a higher salary, employers can subtract expenses and place them in the group benefits plan. In turn, that lowers payroll taxes and opens up the opportunity to tax offsets. Employers that pay into a group insurance plan can consider it as a tax-deductible business expense.
What Is Average Cost Of Providing Employee Health Insurance?
Due to the flexibility that comes with health and dental plans for small businesses in Canada, determining the final cost for employers to provide employee insurance varies.
According to AGA, “the average annual premium for a group insurance plan normally ranges between $1,500 and $4,000 per employee “. For many businesses, spending between that range amounts for nothing, especially considering the benefits that your workplace will gain.
Once again, your plan will vary depending on what type of coverage you want to provide for your employees. As you notice from the benefits mentioned above, it is better to provide insurance than not.
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].
