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Group Benefits For Employees: What They Are and How They Work

Employer-based insurance plans, or group benefits, are plans that offer employees and, in most situations, their dependents a collection of coverage options that may encompass extended health care coverage, dental, vision, life insurance, and disability protection, among other supportive care items. These plans are applied on the basis of one master contract between the employer (or association/union) and the insurer. When employees are pooled together, risk is distributed, offering increased coverage and reduced costs as compared to similar individual policies.

A group benefits insurance advisor, like Edward Fayer, plays a crucial role in helping companies navigate and implement these plans effectively. It is generally a jointly-funded plan, meaning that the employer covers a large share of the premiums and leaves the rest to be paid by employees through deductions from their salary. Such a shared-cost model allows cost-effective quality coverage to employees and assists companies in their employee attraction and retention efforts. As a group benefits advisor, Edward ensures businesses can optimize their group benefits offerings to meet both employee needs and organizational goals.

What are employer-sponsored benefits in Canada?

Employer-sponsored benefits consist of a comprehensive insurance and wellness program provided by Canadian businesses to attract, retain, and manage their workforce in the best way possible. Such valuable plans augment simple provincial healthcare provisions, offering employees the much-needed cover to protect medical, dental, vision, and disability care. In his role as a group benefits consultant, Edward advises his clients on competitive solutions that suit their budgets, while addressing Canadian laws.

As a dedicated group benefits advisor, Edward brings expert insights to help businesses design and manage employee benefits programs tailored to their unique needs.

Extended Health Care

  • Drugs that are not covered by provincial plans
  • Paramedical care (physiotherapy, chiropractic, massage therapy, acupuncture, naturopathy)
  • Diagnostics and equipment (wheelchairs, hearing aids, CPAP machine)
  • Private or semi-private hospital accommodations
  • Emergency out-of-country medical coverage

Dental Care

  • Basic services (cleanings, fillings, extractions)
  • Major restorative (crowns, bridges, dentures)
  • Orthodontics

Vision Care

  • Eye examinations
  • Prescription eyewear
  • Possible coverage for laser eye surgery and safety glasses

Life & Accidental Death and Dismemberment (AD&D)

  • Life insurance based on salary multiples or flat amounts
  • AD&D benefits for accidental death or specified injuries
  • Dependent life coverage for spouse and children

Disability Benefits

  • Short-term disability (weekly indemnity) for temporary absences
  • Long-term disability for extended income replacement

Other Offerings

  • Health Spending Accounts (HSA) or Private Health Services Plans (PHSP)
  • Employee Assistance Programs (EAP) and mental health supports
  • Critical illness insurance
  • Wellness or lifestyle benefits

What’s Included in Employee Health Benefits?

A general group health insurance plan usually goes much further than local provincial health insurance:

  • Medications (brand name and generic)
  • Paramedical services including massage therapy, physiotherapy and chiropractic services
  • Medical equipment (Prosthetics, oxygen devices, crutches)
  • Better facilities in the hospital and ambulance services
  • Health and preventative care (screens, vaccines)
  • Emergency travel medical coverage
  • Specialist consultations with limited or no provincial funding

As a group benefits insurance consultant, Edward knows how important it is to ensure these benefits are tailored to the unique needs of your company’s employees and to make sure they’re fully aware of the advantages of comprehensive coverage.

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Expert Employee Group Benefits Advisor For Your Small Business

There are numerous ways through which small businesses in Canada can offer competitive benefits to their employees on a budget that they can afford. Plans are organized directly with insurers, through pooled arrangements, or association and affinity groups. An example is association-based plans, which enable smaller employers to pool with other employers in the same industry to receive large-group pricing and plan benefits that a small firm usually would not receive by itself.

As a group benefits insurance consultant, Edward Fayer helps guide small businesses in navigating these options, ensuring they choose the best coverage for their workforce. Coverage may include required dental and drug plans, as well as more flexible health spending accounts or Private Health Services Plans (PHSP) that allow an employee to use funds on the services that are most relevant to the employee. This flexibility is particularly beneficial to workforces with varied needs, such as a combination of younger workers interested in wellness benefits and older workers requiring extended prescription coverage.

Small businesses can adjust benefits to the needs of employee demographics, industry requirements, and financial objectives. With the assistance of an employee group benefits advisor, employers can close the gap between themselves and larger corporations when it comes to retaining and recruiting skilled workers. Employers can also adopt cost-containment options, which can include co-insurance, the annual limit, or focused coverage, controlling the cost yet providing a tangible value.

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How Will a Group Benefits Plan Help You?

A properly structured employee benefits program can offer employers and employees quantifiable benefits beyond provincial healthcare coverage in terms of financial health, job security and competitive advantage in terms of talent attraction.

Competitive Hiring & Retention

Group benefits for employees can help your firm appeal to the most talented employees by providing health, dental, disability, and life coverage, all of which (and others) most applicants weigh before taking a job. Attractive benefits are sometimes the tipping point in a competitive labour market. In Canada, group-based plans make up 90 percent of all health insurance, and in 2021, health insurance carriers served more than 29 million Canadians, or 76% of the population. Offering benefits that are as favourable as, or better than, those of competitors helps in keeping quality talent as well as cutting down on turnover expenses.

Business Tax Advantages

Employer-paid premiums for most group benefits are deductible as a business expense, reducing taxable income. In certain cases, employer-paid premiums are not considered a taxable benefit to the employee, allowing staff to receive valuable coverage without increasing their personal tax burden. This tax efficiency makes benefits one of the most cost-effective forms of employee compensation.

Enhanced Workplace Culture and Morale

Benefits are also evidence of direct interest in staff welfare that can lead to fidelity and contentment at work. Valued employees are more enthusiastic and more productive. In 2021, insurers spent a total of 40.8 billion dollars on health claims, which include prescription medications and dental services, demonstrating that benefits are actually utilized and enjoyed. Mental health coverage is becoming more and more significant, and mental health-associated claims are already up to almost 600 million dollars, which has grown by 75% since 2019.

Healthier, More Productive Employees

Plans with extended healthcare, dental insurance, and sick days ensure prevention and early intervention, thereby minimizing the risk of an employee falling ill or infecting colleagues. The result is reduced sick days and maintained productivity. Disability coverage is additionally relevant because it helps the staff recover with the support of income, reduces stress, and facilitates a successful return to work.

Flexible Implementation

Group benefit plans can be adapted to fit your organization’s size, budget, and demographics. Whether you choose a traditional fixed plan or flexible options like Health Spending Accounts (HSAs), plans can evolve with your company’s needs while keeping costs manageable.

Why Choose Edward Fayer as Your Group Benefits Insurance Advisor?

  • Breadth of Experience – 8 years of experience as a group benefits consultant to businesses regarding group benefits and making recommendations on the group benefits marketplace.
  • Customized Advisory Service – Specialist direction in choosing unique benefit solutions based upon your business wants and desires, as well as your expense limits and employee population.
  • All-inclusive Consultation – Total advisory service including initial evaluation, carrier choice, comparison, and implementation recommendations.
  • Industry Knowledge – Extensive knowledge of Canadian insurance laws, tax consequences, and best industry practices as to selecting optimum benefit plans.
  • Client-Centred – Committed to establishing long-term advisory relationships through open communications, service responsiveness and review of plans.
  • Insurance Carrier Network – Ability to access competitive offerings through developed relationships with an array of insurance providers to make unbiased plan comparisons.
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FAQs

What are the differences between group and individual benefits?

Group benefits distribute the risk among the employees and thereby make them less costly and more broadly covered. Personal plans must be underwritten and are more expensive and usually less available to people with pre-existing conditions.

What role do group benefits play in achieving employee attraction and retention?

Generous benefits are indicators of employer interest in health, lowering staff expenditures and tension. This enhances satisfaction, loyalty, and retention of employees, particularly in competitive markets in which benefits play a role in accepting a particular job.

What occurs in a scenario where a worker quits the company?

To preclude job transition and lapse of protection, most plans can be converted to an individual policy without medical underwriting, as long as the policy was also applied within 31 days.

Are group benefits affordable to small businesses?

Yes. Scaling plans with options such as pooled arrangements, association coverages, co-insurance and spending accounts provide affordability of benefits without compromising recruitment, retention and workforce well-being.

What are the ways in which employees can access their benefits?

Benefit cards, online portals, and mobile apps are used by the employees. Most plans offer direct billing, which decreases out-of-pocket costs and simplifies claims. Training ensures that staff have knowledge and utilize full coverage.

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125 COMMERCE VALLEY DR. W
Suite 802, Markham, Ontario
L3T 7W4
647 408 6300
647 408 6300
hello@edwardfayer.com
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