Some group health plans may cover Ozempic for weight loss, but it depends on your insurer, your employer’s group plan, and whether certain conditions are met.

While Ozempic is mostly used for treating Type 2 diabetes, some group insurance plans may offer coverage for weight loss purposes if medically required. In such cases, most insurers require pre-authorization for the use of Ozempic.

Wondering if your employee benefits plan covers Ozempic for weight loss? In this blog, we explore whether group health plans in Canada cover Ozempic for weight loss, the costs involved, and what factors affect coverage eligibility. 

What is Ozempic?

Ozempic is a prescription medication primarily used to treat Type 2 diabetes. It contains semaglutide, which works by stimulating insulin production and reducing blood sugar levels. 

In Canada, nearly two out of every three adults and one in three children and youth are either overweight or living with obesity. As a result, Ozempic has gained popularity for its secondary use: promoting weight loss.

Due to its effectiveness in suppressing appetite and promoting weight management, it has become a sought-after option for individuals seeking to lose weight under medical supervision.

While Ozempic is not specifically approved for weight loss in Canada, many healthcare providers may prescribe it off-label for patients who could benefit from its weight management effects. Its popularity has raised questions about whether group health insurance plans cover Ozempic and other GLP-1 medications when they are prescribed for weight loss.

Does health insurance in Canada cover Ozempic?

Health insurance typically covers Ozempic for diabetes treatment rather than weight loss. In Canada, insurance coverage for Ozempic varies based on the insurer, intended purpose, and specific plan. Ozempic is generally covered for diabetes management, but when prescribed solely for weight loss, coverage becomes less likely due to strict guidelines and the need for prior authorization.

If weight loss is your goal, meeting BMI criteria or demonstrating obesity-related health risks may improve your chances of approval. In most cases, prior authorization is needed, requiring healthcare documentation and a review by the insurance provider.

How much does Ozempic cost in Canada? 

Ozempic in Canada costs between $200 and $400 for approximately 4 doses. However, these costs may vary depending on the province you reside in or the pharmacy you’re sourcing your medication from.

For example, here’s how much Ozempic costs in various pharmacies in Canada:

Factors affecting coverage for Ozempic and weight loss medications in Canada

Coverage for Ozempic under employee insurance often depends on medical necessity, plan design, and whether Ozempic is included in the insurer’s drug formulary.

• Requirements for medical necessity and prior authorization: Most group health insurance plans will require that Ozempic be deemed medically necessary to qualify for coverage. Prior authorization is also common, meaning the insurer must approve the prescription before it is covered
• Employer preferences and group plan customization: Employers have some say in the customization of their group health insurance offerings. This means that coverage for certain medications, including Ozempic for weight loss, might be included or excluded based on the employer’s decisions
• Inclusion in drug formularies and approval criteria: The insurance company’s drug formulary is a list of medications covered under the group health plan. If Ozempic is included, the insurer may cover it under specific conditions

How much is a 3-month prescription of Ozempic?

A 3-month prescription of Ozempic typically costs around $450, while a 2-month supply is priced at approximately $300. 

If you have an employee benefits plan, you may qualify for savings programs that can reduce your out-of-pocket expenses. If you’re eligible, the Ozempic Savings Card can reduce costs to as low as $25 for a 3-month prescription, depending on your coverage.

What is an Ozempic Savings Card?

Ozempic Savings Card is a coupon card offered by Novo Nordisk, Ozempic’s manufacturer, to help buyers reduce the cost of their prescription. To qualify for the Ozempic Savings Card in Canada, you must have private health insurance, be prescribed Ozempic for the treatment of type 2 diabetes, and receive prior authorization from your healthcare provider.

Which insurance companies offer coverage for Ozempic in Canada?

Insurers such as Manulife, Blue Cross, and Canada Life may offer coverage for Ozempic in Canada. Coverage for Ozempic and other weight loss medications depends largely on the insurer and the specific group health plan an employer selects. Some top Canadian insurers that may offer coverage include:

• Manulife: Manulife offers group benefit plans that may include coverage for specialty medications like Ozempic. Employees may need to complete a prior authorization form to determine eligibility
• Blue Cross: Blue Cross also provides coverage for specialty drugs under some group plans. Coverage details, including any conditions that must be met, depend on the employee benefits plan’s specifics
• Canada Life: Similar to other insurers, Canada Life requires a completed authorization form for specialty medications. Group plans can be customized, which means Ozempic might be covered under certain conditions

Offering employee benefits is one of the smartest ways for small businesses in Canada to attract and retain top talent. In fact, according to CHLIA, 68% of all health insurance purchases in Canada come through group insurance plans. 

On average, small business employee benefits can cost between $80 and $200 per employee for basic coverage, $100 to $250 for enhanced plans, and up to $350 for comprehensive options. 

Several factors may influence the cost of employee benefits in Canada, including company size, employee age, industry type, and claims history. In this blog, we will highlight how small businesses can still find cost-effective group plans tailored to their budget and employee needs.

What are employee benefits for small businesses?

Employee benefits are non-wage benefits or compensations given to employees in addition to their regular salaries. For small businesses in Canada, these benefits typically include health insurance, dental care, life insurance, disability coverage, and other perks like mental health support and retirement plans.

Here are common employee benefits small businesses provide:

• Group health insurance: Provides coverage for medical expenses, including hospital visits, surgeries, and prescription medications
• Dental and vision coverage: Covers cleanings, fillings, eye exams, and prescription eyewear
• Mental health coverage: Offers access to mental health services, including counseling and therapy, promoting overall emotional well-being
• Life and disability insurance: Offers financial protection in case of death, critical illness, or long-term disability
• Employee Assistance Programs (EAPs): Provide access to counselling, addiction support, and stress management resources
• Retirement savings plans: Includes Group RRSPs, DPSPs, or pension plans with optional employer contributions
• Wellness perks: Can feature gym memberships, mental wellness apps, paid mental health days, or remote work options

What is the cost of a small business employee benefits package?

Employee benefits packages for small businesses typically cost between $80 and $350 per employee per month. However, the costs can greatly vary depending on the number of employees, the type of coverage offered, employee demographics, and other factors.  

For small businesses with up to 50 members, the total cost of a group plan per month ranges between $1,185 and $6,412 per month, depending on the number of employees.

Total monthly cost of group insurance for small businesses

*Illustrative costs for different plan tiers. Actual cost will vary based on plan design, company details, and employee demographics. 

What is the average cost breakdown for different types of employee benefits? 

In a small business employee benefits plan, various coverage options can significantly impact costs. For instance, life insurance typically ranges from $62.50 to $125 per employee per month, while health and dental coverage can cost between $300 and $400. 

Estimated monthly costs for key group health benefits

Should small businesses offer employee benefits?

Yes, offering employee benefits can significantly improve employee satisfaction and retention. In a competitive job market, employees often prioritize employers who provide comprehensive health and wellness benefits over those who do not.

According to a survey by Benefits Canada, 79% of employees would prefer employee benefits over an appraisal, and the most preferred benefit is healthcare insurance.

What will my small business employee benefits package look like?

When it comes to providing employee benefits for small businesses, offering benefits such as health insurance, which provides extended coverage for medical expenses, and dental insurance, covering 80% of basic dental care, can positively impact your workforce’s health. 

Additionally, options like vision care, which includes an annual eye exam and $200 towards eyewear, and disability insurance, offering 60% of salary after 30 days of disability, are crucial for financial security. 

Below is a breakdown of the key benefits and their corresponding coverage details, showcasing the value of investing in group insurance for your employees:

Small business employee benefits plan coverage details

*Illustrative coverage details for a sample small business employee benefits plan. Actual coverage details will vary.

How much does the cost of an employee benefits plan vary based on the industry?

In Canada, the cost of employee benefits can vary significantly across different industries, with estimates ranging from $7,500 to $25,000 per employee annually. 

How much do group benefits cost employers?

The average annual premium for group insurance typically varies based on the size of the business. For smaller businesses, the cost usually ranges from 15% of payroll, reflecting their more limited risk pools and potentially higher per-employee costs. 

In contrast, larger companies may see premiums as high as 30% of payroll, due to their larger risk pools and more extensive benefits offerings.

However, there are cost-effective options available for small businesses, where group insurance plans can be customized to fit tighter budgets, costing as little as 1% to 5% of payroll. This flexibility allows small employers to provide valuable benefits without overwhelming their financial resources.

Whether you are a solo entrepreneur, small business owner, or managing a large company in Canada, having group insurance is a crucial part of an employee benefits package. A group insurance plan offers comprehensive healthcare options and helps you attract and retain employees. 

However, understanding group insurance can be confusing, as the coverage, costs, and plans can change depending on the size of the business. 

In this guide, we’ll help you understand group insurance options based on employee count, from solo businesses to large enterprises with over 50 employees.

Group insurance for solo and micro-businesses (less than 2 employees)

Finding suitable group insurance for 1 employee in Canada can be quite challenging. Most employee benefits plans require a minimum of at least 3 employees, making it difficult for micro-businesses and solo entrepreneurs to access standard group benefits.

Some challenges that small businesses can face include higher risk and high premiums, limited bargaining power, limited plan options, challenges of plan customization, and the burden of compliance.

Alternative health insurance solutions for micro-businesses

Despite the above-mentioned challenges, micro-businesses or solo-entrepreneurs still have several options, like Health spending accounts (HSAs),  Individual health and dental plans, Wellness spending accounts (WSA), to get health benefits for themselves or their employees. 

Health Spending Accounts (HSA)

Health Spending Accounts are a great alternative to getting health benefits for self-employed or micro-businesses. These accounts allow you to set aside an amount to spend on eligible health and dental expenses.

Health Spending Accounts also offer tax benefits to Canadian employees, as these expenses are tax-free. These accounts can be set up for solo-entrepreneurs as part of a group insurance plan or as a standalone plan

Individual health and dental plans

Micro-businesses or self-employed individuals can also get individual health and dental insurance plans. These plans offer you financial protection to manage unforeseen health expenses without minimum employee eligibility requirements.

You can also bundle these plans with benefits like vision care, prescription drugs, or emergency medical travel coverage

Wellness Spending Accounts (WSA)

WSAs are employer-funded accounts designed to support your personal well-being and health-related expenses. You can allocate funds in this account and use them when needed. Micro-businesses with fewer than 3 employees can use this option to offer health coverage to their employees.

Tax implications and advantages for solo-entrepreneurs

As a solo-entrepreneur, you must also understand the tax implications and advantages of group insurance options. Benefits from Health Spending Accounts and Wellness Spending Accounts are mostly tax-free, thus reducing your tax liability. 

You can deduct other health plans as business expenses to lower your overall taxable income.

When to consider transitioning to a group insurance plan?

Till the time you are solo, having the above-mentioned healthcare coverage is a great option. However, as soon as you grow and hire your second or third employee, you become eligible for a group health insurance plan for your business. A group benefit plan offers broader coverage at a lower premium as compared to individual health plans. 

Group insurance for small businesses (2–10 employees)

Businesses with 2-10 employees can offer valuable health and wellness benefits to their teams. Most insurers require at least 2 or 3 employees to offer group insurance for small businesses in Canada. One out of these can be the business owner, but at least 1 must be an unrelated, full-time employee. 

Coverage options under group benefits for 2-10 employees

Group insurance for small businesses in Canada typically offers health and dental coverage, life and accidental death coverage, disability insurance, and HSAs.

• Health and dental coverage: Health and dental plans offer coverage for prescription medicines, dental procedures, paramedical services, and vision care
• Life and accidental death cover: Group medical insurance plans also provide life insurance and accidental death insurance for employees and their families. These plans provide additional coverage if the employee dies or sustains injury from an accident 
• Disability insurance: Most insurers also offer both short-term and long-term disability insurance under an employee benefits package. This type of group health insurance plan replaces income for employees who are unable to work due to any illness or injury
• Health Care Spending Accounts: HSAs are another great addition to employee benefits packages. These accounts allow employees to set a fixed amount per employee, which they can spend on health-related expenses

Cost considerations for small business group insurance

Cost considerations play a huge role in group benefits for 2-10 employees. A detailed budget consideration is crucial before choosing group health insurance for small businesses. The cost will depend on factors like employee demographics, insurer claims history, and plan type.

Typical costs for group benefits for small businesses vary between:

• $80-$200/month/employee for a very basic plan
• $100-$250/month/employee for a more enhanced plan
• $150-$350/month/employee for comprehensive coverage

These are indicative costs only, and they will change based on the coverage and plan details.

Ensure that you do a thorough assessment beforehand. To help you with this, our licensed advisors at PolicyAdvisor will help compare group health plans from 30+ insurers and help you choose a plan that suits your cost requirements.

How can small businesses customize group insurance plans?

Small businesses can control costs while providing broader health coverage by customizing their group health plans. This not only satisfies the employees but also offers tax savings for the business. 

Small businesses can customize their group medical insurance benefits by choosing only the benefits their employees need, such as dental, vision, or mental health support, and avoiding any unnecessary expenses.

Group insurance for growing businesses (10-30 employees)

As your business grows to 10-30 employees, you can start giving a more comprehensive employee benefit package to your team. 

With mid-size group health plans, you can offer vision care, paramedical services, critical illness coverage, and employee assistance programs to your employees. 

• Health and wellness group benefits: Growing businesses can offer enhanced benefits under their group health insurance plans. These include vision care, paramedical services, employee wellness benefits, prescription drugs, disability insurance, and comprehensive dental plans

• Critical illness coverage: Under group insurance for 10-30 employees, businesses can also add specialized coverage like critical illness insurance. These plans provide a one-time payment to employees upon diagnosis of covered critical illness

• Employee Assistance Programs: EAPs provide counselling and support services that help employees manage personal and work–related issues. Growing businesses can include this program under their employee benefit packages to support their team’s mental health and well-being 

How to customize group employee benefits for a growing business?

With group insurance for 10-30 employees, you get more flexibility to customize your employee benefits plan. You can add optional benefits and implement cost-sharing options between the employer and employees. 

Optional benefits like tiered coverage, accidental death and dismemberment insurance, short-term disability, long-term disability, ESAs, and HSAs can help customize employee benefits plans. 

Cost management and employee retention strategies for growing businesses

For businesses with 10-30 employees, managing costs becomes necessary. Apart from strategic cost management, growing businesses should also adopt strategies like RRSP, TFSA, DPSP, and digital tools to retain employees.

• Balancing cost control with competitive benefits: Cost management for group insurance for growing businesses can be done by choosing flexible coverage options, implementing co-payment and deductible options, and including health and wellness accounts
• Integration of savings plans: Integrating a group retirement savings option can also be an attractive addition to an employee benefits plan. These include:
  • Group Registered Retirement Savings Plans (RRSPs)
  • Tax-Free Savings Accounts (TFSAs)
  • Deferred Profit Sharing Plans (DPSPs)

How to choose the right health insurance plan for your restaurant?

Selecting the best health insurance for restaurant employees means balancing cost, coverage, and flexibility. With so many options on the market, it’s important to evaluate what fits your team’s needs and your budget. 

Key factors include your team size and eligibility requirements, the types of coverage offered, flexibility for part-time staff, and strategies for cost control and tax advantages.

• Team size and eligibility requirements: Some plans have minimum employee thresholds, while others require full-time status. Consider how many staff will qualify and whether your team is mostly full-time, part-time, or seasonal
• Coverage types: Look for plans that include core benefits your employees need most, such as:
  • Medical services (prescriptions, hospital care, paramedical)
  • Dental care (preventive, major, orthodontics)
  • Vision (eye exams, glasses, contact lenses)
  • Mental health support (therapy, counselling)
    
• Flexibility for part-time and full-time staff:  Employers can offer tiered or voluntary plans to allow more employees to participate, especially in an industry where part-time work is common. Employers can also offer Health Spending Accounts (HSAs) or wellness stipends as flexible add-ons
• Cost control and tax advantages: Understand your contribution options and how they impact your taxes. You can typically deduct employer-paid health benefits from your taxes, and options like HSAs can help you manage costs while still offering meaningful support

Retirement planning is one of the most important financial steps Canadians will face. According to Statistics Canada, the number of Canadians enrolled in a registered pension plan grew by 215,800 in 2022, reaching over 6.9 million active members. Whether you’re early in your career or nearing retirement, choosing the right savings vehicle can shape your financial future.

Two of the most common workplace retirement options are pension plans and Group Registered Retirement Savings Plans (Group RRSPs). In this article, we’ll break down how each plan works, its benefits, and which might suit your retirement goals best.

Understanding Pension plans and Group RRSPs

If your employer offers both a pension plan and a Group RRSP, it’s important to understand how each works before deciding where to contribute. While both provide tax advantages and may include employer contributions, they differ significantly in structure, flexibility, and long-term benefits.

What is a pension plan?

A Registered Pension Plan (RPP) is an employer-sponsored retirement savings program designed to provide long-term income after retirement. In Canada, RPPs are formal plans regulated by federal or provincial pension legislation, ensuring strong oversight and protection for members.

There are two main types of RPPs in Canada:

• Defined Benefit (DB) Pension Plan: This offers a guaranteed retirement income plan based on salary and years of service. The employer typically handles investments and assumes the risk
• Defined Contribution (DC) Pension Plan: In this plan, contributions from the employers and employees are fixed, but the eventual retirement income depends on investment returns

What is a Group RRSP?

A Group RRSP is a retirement savings plan sponsored by an employer, but structured like a personal RRSP. Employees contribute through automatic payroll deductions, often with employer matching contributions to boost the retirement savings fund.

How do employer matching contributions impact the overall savings in a group RRSP?

Employer matching contributions significantly boost the total retirement savings within a Group RRSP. These contributions are added on top of the employee’s regular payroll deductions, essentially increasing the amount saved without additional effort from the employee. 

Over time, this compounding effect, especially when invested wisely, can result in a substantially larger retirement fund, making employer matching one of the most valuable features of a Group RRSP.

How can employers improve Group RRSP participation?

Employers can improve Group RRSP participation by implementing a well-designed plan combined with ongoing education and monitoring.

Key strategies include automatic enrollment to increase initial sign-ups, employer matching to incentivize contributions, providing digital tools to educate and motivate employees, and regularly reviewing participation data to fine-tune the program. 

Here’s what employers should do:

• Automatic enrollment: Automatically enroll employees with an opt-out option
• Employer matching: Offer matching contributions to encourage saving
• Education tools: Provide simple tools that show how savings grow over time
• Regular reviews: Monitor participation and improve the plan as needed

A well-executed Group RRSP strengthens your benefits offering and helps employees take confident steps toward a financially secure retirement.

Which are the top Group RRSP companies in Canada?

Canada’s Group RRSP market is dominated by several leading financial institutions such as Manulife, Desjardins, Sun Life, Canada Life, RBC, and BMO. Each of these insurers offer unique features to meet employees’ retirement savings needs.

• Manulife Group RRSP: A top choice for employers seeking a digitally advanced solution, Manulife’s plans benefit from the firm’s investment management strength and user-friendly digital platforms
• Desjardins Group RRSP: Known for strong client support and deep market penetration in Quebec, Desjardins offers diverse investment options, seamless plan administration, and educational tools to help employees understand their savings strategy
• Sun Life, Canada Life, RBC, and BMO: Sun Life, Canada Life, RBC, and BMO offer reliable Group RRSP programs, each varying in fee structure, fund lineup, administrative support, and financial literacy tools. Their extensive national networks and employer resources make them competitive options

How to choose the right retirement plan for your employees?

Choosing between a pension plan and a Group RRSP requires you to align with your workforce needs and long-term organizational goals. Here are some questions to consider:

• What are the demographics of your workforce?

Younger, mobile employees often prefer the flexibility of Group RRSPs, while older, long-tenured employees may value the stability of a pension

• How competitive is your benefits strategy?

In industries where talent competition is high, offering modern retirement solutions like Group RRSPs with matching employer contributions can boost recruitment and retention

• What is your budget and administrative capacity?

Group RRSPs are often easier and less expensive to administer than traditional defined benefit pension plans, making them ideal for small businesses and startups

Ultimately, Group RRSPs are well-suited for organizations seeking flexibility, lower liability, and simplified management without compromising employee value.

Should employees prioritize a Group RRSP or a pension plan?

For employees, choosing the right retirement savings tool depends on their financial goals, risk tolerance, and career plans. Here’s how you can decide between pension plans and Group RRSPs:

• When is a pension better?

If you value guaranteed retirement income and plan to stay with one employer long term, a defined benefit pension may provide more security.

• When is a Group RRSP better?

If you prefer investment control, want portability, or may change jobs often, a Group RRSP offers more flexibility and autonomy.

Many Canadians benefit from a combined approach, participating in an employer-sponsored plan while also contributing to a personal RRSP or TFSA. This strategy spreads risk and enhances long-term retirement security.

How to get the best group retirement plan in Canada?

Choosing the right group retirement plan in Canada can significantly impact your employees’ financial security and your company’s overall benefits strategy. To get the best group retirement plan, you need to consider factors like plan flexibility, contribution matching, administrative simplicity, and long-term growth potential.

Start by identifying your team’s retirement goals and financial literacy needs. Compare options such as Group RRSPs, Defined Contribution Pension Plans (DCPPs), and Deferred Profit Sharing Plans (DPSPs) to see which structure aligns with your business and budget.

Working with a trusted advisor simplifies the process. At PolicyAdvisor, our expert advisors help you choose from over 30 of Canada’s leading retirement plan providers. They can also help you evaluate, compare, and choose a plan that fits your company’s needs. Schedule a call with us today to get the best group retirement plan quotes in Canada!

Most employers in Canada want the best for their employees. And why shouldn’t they? Having your employees’ backs will mean they’ll have yours too. It is a win-win situation. 

So the question is, how can you, as an employer, go the extra mile for your workers? The easiest answer is by offering a group benefit plan. According to a report by CHLIA, almost 90% of health insurance sold in Canada is a part of a group insurance plan.

Employee benefits plans or group plans are a bunch of perks, such as health, dental care, vision care, paramedical and medical services, and life insurance that are offered by employers to their employees.  In this blog, we’ve reviewed the top group benefits providers in Canada and have listed their unique offerings.

What are the best group insurance companies in Canada?

In Canada, companies such as Sun Life, Canada Life, Manulife, Desjardins, Green Shield, and more offer the best group health insurance rates in 2025:

• Sun Life 
• Canada Life 
• Manulife
• Desjardins
• Green Shield Canada 
• Medavie Blue Cross
• Equitable Life 
• Benefits by Design
• Empire Life

1. Sun Life 

Overview: Sun Life Financial, one of Canada’s top group benefits providers Canada, offers a wide range of insurance, investment, and retirement, and group benefits solutions. Understanding the importance of workplace health, Sun Life offers a range of group health insurance products that include digital tools to manage employee onboarding, benefits, reports, billing statements, and more. The company offers all of this while balancing costs and is a great option if you’re looking for group health benefits for your organization.

PolicyAdvisor Rating: 4.5/5

What they offer:

• Extended Health Care (EHC), dental, and vision care
• Life and accidental death insurance
• Travel assistance
• Short-term and long-term disability
• Healthcare Spending Accounts (HSA)
• Mental health and wellness
• Paramedical expenses such as chiropractors, physiotherapists and other medical professionals
• Prescription drugs cost management

What we like: 

• Digital enrolment and management tool that helps onboard members and allows efficient admin management
• The Lumino Health Virtual Care service that provides access to physical and mental health resources and specialists 
• Pharmacy benefits management that helps save on medication costs
• Teladoc Medical Experts® Services for insureds diagnosed with a serious medical condition including consultation on treatment plans, locating specialists and customized guidance, support and advice
• Offers one of the highest coverage maximum for Dental and Vision
• Flexible plan design options to meet employee needs and fit companies budget
• My Sun Life Mobile app that lets employees submit their EHC claim and make payments within 24 to 48 hours
• Integrating diversity, equity and inclusion (DE&I) such as gender affirmation coverage

2. Canada Life 

Overview:  With over 170 years of experience, Canada Life is a name you can trust when it comes to group health insurance. They’ve been around the block and definitely know a thing or two about keeping businesses covered. With a range of options, including health, dental, life, and disability insurance, they’ve got your employees covered.

PolicyAdvisor Rating: 4.5/5

What they offer:

• Life, critical illness, and accidental death insurance
• Prescription drug cost management
• Short-term and long-term disability insurance
• Dental and vision care
• Paramedical services (such as massages and physiotherapy)
• Healthcare Spending Accounts (HSA)
• Emergency medical coverage and travel assistance
• Additional benefits for retirees or self-employed

What we like: 

• Freedom at WorkTM that customizes solutions for small businesses 
• They allow the possibility of a savings plan (RRSP, TFSA, DPSP)
• Expats or new to Canada insurance plans that help international employees get the health coverage they need
• Extensive network of healthcare providers nationwide
• Digital admin tools for online enrolment, management and billing
• DrugSolutions program helps you provide the care your employees need at a price you can afford

3. Manulife 

Overview: Manulife Financial, a leading provider of financial services in Canada, offers comprehensive solutions for group benefits. With a strong commitment to supporting businesses and their employees, Manulife leverages over 130 years of experience to deliver innovative and flexible group health services.

PolicyAdvisor Rating: 4.5/5

What they offer:

• Life and Accidental death Insurance
• Short and long-term disability
• Extended Healthcare
• Dental & Vision
• Healthcare Spending Accounts (HSA)
• Coordination of benefits (COB)
• Mental health support
• Personalized medicine program
• Opioids and drug plan

What we like: 

• One of the most technologically advanced with AI underwriting and innovative mobile app
• Manulife Mobile Enhancement facilitates employee health management with convenient access to group benefits via mobile technology
• The company offers a digital setup that is quick and efficient, with completion within 5-7 business days
• Trip cancellation insurance that is available as an optional add-on to Emergency Travel Assistance (ETA) plans
• Manulife offers a 28-month rate guarantee on all benefits, along with a standard 16-month rate guarantee for added stability
• The Employee Family Assistance Program (EFAP) is integrated with Mental Health Counseling Plus, providing comprehensive support for overall well-being
• Manulife Health by Design™ ensures that employees receive the right care, at the right time, and in the right way, enhancing health outcomes
• Manulife offers a Personalized Medicine Program to determine the right dosage and medication for plan members
• DrugWatch which is an oversight program to ensure value as drug costs rise
• My Drug Plan which offers centralized access to pharmacy-related resources and drug lookup tool
• Specialty Drug Care Program that manages specialty drugs to save costs and improve health outcomes

4. Desjardins 

Overview: Desjardins Group, a leading cooperative financial institution in Canada, is renowned for its comprehensive financial services, including insurance and investment solutions. With a strong focus on member satisfaction and community support, Desjardins delivers innovative group health insurance offerings like the Manager Assistance Program, Health is Cool 360° Platform and more.

PolicyAdvisor Rating: 4.5/5

What they offer:

• Life, Accidental Death and, Critical Illness insurance
• Online app for claims and other services
• Health and wellness resources
• Travel insurance
• Employee assistance program
• Virtual healthcare
• Patient support program for specialty drugs
• Second medical opinion add on

What we like: 

• Offers the highest paramedical coverage for health practitioners such as chiropractor, massages etc.
• Most of Desjardins’ group insurance plans include an employee health and wellness program, and can also include prevention and intervention services
• The Omni all-in-one mobile app that helps members submit claims and access information
• The Costco Preferred Pharmacy Network offers plan members a $5.00 discount per prescription if they have a co-insurance or per prescription deductible (Quebec is an exception)
• Drug cost saving by promoting biosimilars – savings of 15-50% for each targeted drug
• Out-of-country coverage that includes 180-day trips, a $5,000,000 lifetime maximum, optional trip cancellation, and 24/7 health assistance
• Gender affirmation that covers surgeries and treatments not covered by public health insurance and includes a workplace support kit
• The Health is Cool 360° Platform that offers resources to manage plan members’ health
• Health PACT that offers personalized phone coaching from a nurse to manage health issues and improve health
• Manager Assistance Program provides support for managers in resolving workplace issues and coaching, legal, financial, HR advice, and post-traumatic counseling

5. Green Shield Canada

Overview: Green Shield Canada (GSC) is a leading provider of health and dental insurance in Canada, renowned for its innovative approach to employee benefits. They offer employee benefits solutions like the iBenefits platform, specialty care program, claims management assistance, etc.

PolicyAdvisor Rating: 4.5/5

What they offer:

• Day-to-day, routine medical and dental expenses 
• Emergency medical travel
• Travel insurance
• Fraud and abuse management solutions
• Contact center solutions
• Claims management assistance
• Formulary, claim cost, and utilization management
• Specialty pharmacy services via NKS Health

What we like: 

• Flexible and affordable plans for health and dental only, without mandatory pooled benefit requirement
• All in one Honeybee Benefits app for quick claim assistance and benefit services
• All in one digital admin tool for easy enrolment and management
• Standardized plan options to select from
• Administration Services Only (ASO) allows you to control the cost of employee benefits — pay only for what your employees use
• Specialty pharmacy services offered by NKS Health
• Not-for-profit, reinvests in community health initiatives

How does group health insurance work in Canada?

Group health plans are offered by employers and businesses in Canada, typically on a cost-sharing basis. These plans cover access to medical, dental, and other health-related services. This benefit supports employees’ well-being and enhances job satisfaction and loyalty, with additional tax benefits.and additional riders.

Here’s how group health insurance works in Canada:

• Employer-sponsored plan: Employers offer group insurance to eligible employees, often covering a significant portion of the premiums
• Cost sharing: Employees pay the remaining premiums through payroll deductions
• Broad coverage: Policies typically cover medical, dental, vision, and prescription drug expenses
• Eligibility requirements: Employees may need to work a minimum number of hours or complete a waiting period to qualify
• Tax benefits: Employer contributions are usually tax-deductible, making it a cost-effective benefit for businesses
• Flexibility: Some plans allow employees to customize their coverage with additional benefits

What types of group insurance plans are available in Canada?

In Canada, several types of group insurance plans are available to meet the needs of businesses and their employees. Some of the best plan include health insurance, dental insurance, vision insurance, disability insurance, critical illness insurance and more:

• Health insurance: Covers medical expenses like prescriptions, hospital stays, and specialist visits
• Dental insurance: Provides coverage for routine dental care, cleanings, and major procedures
• Vision insurance: Covers eye exams, glasses, and contact lenses
• Life insurance: Offers a death benefit to the employee’s beneficiaries
• Disability insurance: Provides income replacement during illness or injury
• Critical illness insurance: Pays a lump sum if diagnosed with a serious illness
• Employee Assistance Programs (EAPs): Support for mental health and wellness

What is the average cost of group benefits insurance per employee in Canada?

The average cost of a group health insurance plan in Canada ranges from $1,500 to $4,000 per employee per year. The actual cost depends on the types of benefits you include, such as extended health, dental, vision, and life insurance.

For small businesses, group insurance premiums typically equal about 15% of total payroll, while larger organizations may spend closer to 30% of payroll on their employee benefits plans.

Insurers calculate premiums by multiplying the level of coverage across each benefit type by the applicable rate. Choosing the right group insurance plan helps you manage costs while offering meaningful coverage to attract and retain top talent.

What is the minimum number of employees required to qualify for group insurance in Canada?

In Canada, most insurers require a minimum of three to five full-time employees to qualify for a group insurance plan. Some providers may allow you to start a plan with just two unrelated employees, as long as they meet the insurer’s minimum working hours, which is usually 20 to 30 hours per week.

To activate the plan, employers must include a majority of eligible employees, often at least 70% participation, to ensure balanced risk. Group health benefits rely on risk sharing across a pool of employees, which is why insurance companies set minimum group sizes. 

Small businesses that don’t meet these requirements can consider a Health Spending Account (HSA) or an individual employee benefits plan until they grow.

Can I customize group benefits packages for different types of employees?

Yes, you can customize group benefits packages in Canada to meet the unique needs of different types of employees. Many employers design tiered employee benefits plans that offer varying levels of coverage based on job role, seniority, or employment status (e.g., full-time vs. part-time).

Insurers allow you to structure plans with different coverage for executives, managers, and general staff, while still maintaining compliance with group insurance rules. For example, executives may receive enhanced health, dental, and life insurance benefits, while entry-level employees may receive core health and drug coverage.

How to purchase a group benefits insurance plan?

To provide your employees with meaningful and cost-effective protection, you need to take a structured approach when purchasing a group benefits insurance plan in Canada. Follow these key steps to make an informed decision and set your team up with the right coverage:

• Identify your employees’ needs: Start by analyzing what types of benefits—like health, dental, vision, or mental wellness—your team values and requires the most
• Research and compare group insurance providers: Look into various group benefits insurance providers in Canada to understand the types of plans available and their flexibility
• Evaluate plans for coverage, cost, and value: Carefully compare premiums, deductibles, coverage limits, and additional features to find a plan that balances affordability with comprehensive protection
• Speak with a licensed insurance advisor: Connect with an expert (such as our licensed group insurance advisors at PolicyAdvisot) who can walk you through policy details, explain tax advantages, and ensure you stay compliant with regulatory requirements
• Choose the best-fit plan for your business: Select a plan that aligns with your company’s goals, budget, and the needs of your workforce
• Work with the provider to enroll your employees: Collaborate with the insurer to roll out the plan, guide your employees through the enrollment process, and ensure coverage starts without delays

Spoilt for choice? Let our experts help you decide!

Whether you’re looking for comprehensive coverage, competitive pricing, or top-notch service, there’s a provider out there that’s perfect for you. Finding the best group insurance company in Canada is all about finding the right fit for your team. 

At PolicyAdvisor we work with 30+ of Canada’s best insurance companies. Our expert licensed advisors assist you with deciding the ideal group benefits provider for you. Our advisors will ask you simple questions about your business, employees, and the coverage amounts you’re seeking to find the best group coverage plan for you.

Group health insurance is one of the best ways to attract and retain talented employees. In fact, according to a report by CHLIA, nearly 90% of all health insurance in Canada is sold through group insurance plans. This highlights just how essential they’ve become in the workplace.

If you run a small business in Canada, you might be wondering: How many employees do you really need to qualify for group health insurance? In most cases, you need at least two employees who meet the minimum hours requirement. However, this number can vary depending on the insurer.

In this blog, we’ll explain group insurance eligibility, who counts as an employee, and how small businesses can qualify for the right group health plan.

What is group health insurance and why does it matter?

Group health insurance is a type of employee benefits coverage that a business or organization offers to its employees. Instead of each employee purchasing their own plan, the employer arranges coverage through an insurance provider for the entire group of employees, often at a lower cost per person due to group pricing.

Benefits for employers

• Tax deductions: Premiums paid by the employer are typically considered a business expense and are tax-deductible
• Attract and retain talent: Health benefits are a top priority for job seekers. Offering group health coverage can make your business more appealing and help attract top talent, and improve employee satisfaction
• Enhanced team productivity: When employees feel secure about their health coverage, they’re more likely to stay focused and engaged at work, which improves productivity

Benefits for employees

• Lower premiums: Group rates are usually more affordable than individual plans, which can be beneficial for employees 
• Better coverage options: Group plans often offer comprehensive benefits, including dental, vision, and prescription drugs
• Simplified enrollment: Employees can join the plan through their employer, often with minimal paperwork and without any administrative hassle

Minimum number of employees required to avail group health insurance

In Canada, most group health insurance providers require a minimum of two eligible employees to set up a plan. This generally includes the business owner plus at least one other employee. Family members and spouses of the business owner often do not count toward the minimum employee count unless they are on payroll as full-time staff.

To qualify for group health insurance, employees must usually work at the organization for at least 20 to 30 hours per week on a regular basis. Some insurers may offer flexibility for part-time workers or contract employees, but standard group plans are built for businesses with a consistent team of full-time staff. 

If you have fewer than two qualifying employees, your best option may be an individual health plan or a health spending account (HSA) tailored to small business owners.

Can sole proprietors get group health insurance?

In Canada, sole proprietors or one-person businesses usually don’t qualify for group health insurance plans. Group plans are designed for companies with at least two enrolled employees. So if you’re the only one on payroll, insurers won’t issue a policy under a group structure.

However, if you operate solo, you still have several practical alternatives, including individual health insurance plans, health spending accounts and personalized benefits packages.

• Individual health insurance plans: These offer similar benefits to group plans and can be customized based on your needs and budget
• Health Spending Accounts (HSAs): You can use a health spending account (HSA) to pay for a wide range of medical expenses in a tax-free way, making it a flexible and cost-effective alternative
• Personalized benefits packages: Some providers offer plans specifically for freelancers, contractors, or microbusinesses with just one or two people

Which employees are eligible for group health insurance?

In Canada, eligible employees for group health insurance are typically those who meet specific criteria set by the insurance provider and the employer. Eligible employees may include full-time staff, individuals who are actively at work, Canadian citizens, on a company payroll, etc.

Here’s who usually qualifies:

• Full-time employees: Most insurers require employees to work at least 20 to 30 hours per week on a permanent basis
• Actively at work: The employee must be actively working (not on leave or laid off) at the time of enrollment
• On payroll: The employee must receive a regular T4 slip (proof of employment income in Canada)
• Canadian citizens: The employee must be a permanent resident of Canada to be eligible for group health insurance
• Completed waiting period: Some employers apply a waiting period (e.g., 3 months) before new hires become eligible for the benefit`

Employees on probation may become eligible for group health insurance after the probation period ends. While part-time staff or contractors are typically excluded, some insurance plans may offer limited coverage to such employees if the employer chooses to include them.

What is the average cost of group health insurance per employee in Canada?

The average cost of a group health insurance plan in Canada ranges from $1,500 to $4,000 per employee per year. The actual cost depends on the types of benefits you include, such as extended health, dental, vision, and life insurance.

For small businesses, group insurance premiums typically equal about 15% of total payroll, while larger organizations may spend closer to 30% of payroll on their employee benefits plans.

Insurers calculate premiums by multiplying the level of coverage across each benefit type by the applicable rate. Choosing the right group insurance plan helps you manage costs while offering meaningful coverage to attract and retain top talent.

Tips for small businesses to get a group health insurance plan

When you are getting started with group health insurance as a small business owner in Canada, make sure to understand the eligibility criteria, set a realistic budget, choose the right plan type, understand the benefits packages, and work with an insurance broker for the best outcome.

• Understand the eligibility criteria: Ensure you meet the minimum requirement of having at least two eligible employees. Confirm that your team is on payroll, has provincial health coverage and are not made up solely of contractors
• Set a realistic budget: Decide how much your business can contribute monthly. Many small businesses cover 50% to 100% of employee premiums. A clear budget helps narrow down the most suitable plans according to your budget
• Choose the right plan type: Consider traditional health and dental plans or explore additional riders for better customization and extended coverage
• Review annually: Group health insurance needs can change as your team grows. Review your plan annually to ensure it still meets your employees’ needs and fits your budget
• Work with an insurance broker or an advisor: It is best to partner with a licensed group benefits advisor who understands the small business market. Companies like PolicyAdvisor have a team of dedicated experts who can help you compare quotes and find the best group health insurance for your needs
• Mandatory participation: For most small businesses, all eligible employees must participate in the group benefits plan if one is offered, unless they have comparable coverage through a spouse or partner’s plan (in which case, they may opt out of health and dental benefits only, but not other core benefits like life insurance)

How to get the best group health insurance quote in Canada?

To get the best group health insurance quote in Canada, it’s important to compare options across multiple providers—not just in terms of price, but also flexibility, coverage levels, and long-term value. That’s where PolicyAdvisor can help.

At PolicyAdvisor, we work with Canada’s top insurance providers to give small businesses access to a wide range of customized group health plans. Whether you’re a startup with just two employees or a growing team with evolving needs, we help you build a benefits package that fits your budget and goals.

Our licensed advisors guide you through every step of the process, from initial purchase to after-sales support. Schedule a call with us today to get the best group health insurance rates in Canada today!

In Canada’s fast-paced restaurant industry, group health insurance for restaurant employees isn’t just a perk; it’s a powerful tool for retention and operational stability. According to a report by Restaurants Canada, 62% of restaurants are operating at a loss or barely breaking even. As Canadian restaurants are facing such an enormous staffing crisis, offering employee benefits can set restaurants apart.

High turnover in restaurants creates multiple challenges, including: 

• Disrupted customer service quality
• Increased recruitment and training costs
• Decreased team morale and cohesion
• Lost institutional knowledge

Health insurance for Canadian restaurant employees helps address these issues by boosting employee satisfaction, reducing churn, and supporting physical and mental well-being. This guide breaks down how Canadian restaurant owners can build a loyal workforce with the right health insurance and employee benefits strategy.

What are the key aspects of group health insurance for restaurant employees?

Group health insurance is one of the most effective small business benefits packages that Canadian restaurant owners can use to attract and retain staff in a competitive labour market. Group policies often cost less than individual plans and provide more consistent coverage across employees.

Here are the key aspects restaurant owners should consider when selecting a group medical insurance plan for their teams.

Coverage 

A typical group medical insurance plan covers the extensive healthcare needs of employees, including routine and medical emergencies. Some of the main coverage options include:

• hospital stays
• prescription drugs
• emergency care
• paramedical services like physiotherapy
• mental health support

Some employee health insurance companies also offer optional add-ons such as dental, vision, and travel insurance, depending on the insurer and employer preferences.

Cost

Group health insurance plans typically cost less than individual plans due to risk pooling.

For small businesses with 10-50 employees, group health insurance can typically cost between $250 and $350 per employee per month. Employers can choose to cover the full premium or share the cost with employees.

Eligibility

Individuals are eligible for health insurance after a probationary period. To be eligible, employees must meet one of the following criteria: 

• 30 to 90 days of permanent employment
• Minimum weekly hour requirement of 20+ hours per week

Full-time employees are generally included, but some insurers offer flexibility for part-time or seasonal staff, which is especially relevant for restaurants with fluctuating staffing needs.

Family coverage

Most health insurance plans allow employees to add dependents, including spouses and children, for an additional premium. Offering family coverage can increase employee loyalty, particularly among older or long-term staff members.

Claim settlement

Insurers typically settle claims digitally through apps or online portals. Insurers typically provide direct billing for pharmacies and dental services, reducing upfront costs for employees and making the claims settlement process seamless.

Waiting periods

Insurers may impose waiting periods ranging from 3 to 12 months for certain healthcare benefits, including dental, vision, or maternity coverage. Employers should clarify these timelines with insurers to manage employee expectations.

Why does health insurance matter for restaurant employees in Canada?

Canada’s restaurant industry is quite competitive, with annual staff turnover often exceeding 70%. Business owners can choose to offer restaurant employee benefits in Canada, like small business health insurance, making it a game-changer in terms of recruitment and retention.

Restaurant jobs come with distinct health risks, such as:

• Physical demands and potential for injuries
• Limited or non-existent paid sick leave
• High-stress environment affecting mental health
• Irregular hours impacting sleep and wellness

Providing health insurance for restaurant employees shows your team they’re valued. It helps attract talent, boosts morale, reduces absenteeism, and supports a healthier, more stable workforce.

In a high-turnover industry, offering employee insurance is more than a perk—it’s a smart strategy for long-term employee retention and success.

What are the benefits of offering health insurance for Canadian restaurant employees?

In an industry known for high turnover and burnout, offering employee insurance helps create a more stable, motivated, and loyal team. It also strengthens your restaurant’s reputation as a responsible and attractive employer, especially as job seekers increasingly prioritize benefits alongside pay.

• Reduced turnover and training costs: Staff retention is one of the biggest challenges in the hospitality sector. Small business health insurance can be a major factor in convincing employees to stay longer, reducing the need for constant recruitment and onboarding
• Improved employee morale and loyalty: When employers value their employees and their health, it fosters a sense of trust and commitment. This can lead to a more engaged and positive work environment, where team members go the extra mile
• Competitive advantage in restaurant hiring: In a crowded job market, especially in cities with staffing shortages, offering a health plan can give your restaurant the edge over others that don’t provide benefits
• Enhanced restaurant reputation and workplace culture: Offering health coverage signals that you’re a supportive employer. It boosts your brand image, not just with current and prospective employees, but also with customers who appreciate socially responsible businesses
• Reduced absenteeism and presenteeism: Employees with access to healthcare are more likely to address issues early and stay healthier overall. This leads to fewer sick days and better performance when on the job

What challenges do Canadian restaurants face with employee health insurance?

Canadian restaurants operate on tight margins, and implementing a small business health insurance plan can feel financially out of reach, especially for small or independent establishments. On top of that, fluctuating staff hours, seasonal employment, and high turnover make it hard to offer consistent, long-term benefits.

Some of the key challenges of investing in restaurant insurance in Canada may include:

• Limited budgets make it difficult to afford comprehensive plans
• Irregular or part-time schedules that complicate eligibility and plan stability
• High employee turnover reduces the long-term value of benefits for employers
• Complexity in navigating options to find affordable, relevant coverage
• A young, temporary workforce that often doesn’t recognize the value of benefits

As a result, many restaurant workers in Canada still go without health insurance. However, this is starting to change. More employers are realizing that offering employee health benefits can reduce turnover, improve morale, and support a more reliable, productive team.

What are the health insurance options for Canadian restaurant employees?

Finding the right employee benefits for your restaurant staff can feel overwhelming, especially with tight budgets, part-time roles, and fluctuating hours. Fortunately, there are several affordable health insurance solutions for restaurants in Canada that can fit your business size, budget, and staffing model.

• Traditional group health insurance plans: These are comprehensive employer-sponsored plans that cover a wide range of medical, dental, and vision expenses. While ideal for larger teams, they may be cost-prohibitive for smaller restaurants without volume discounts
• Health Spending Accounts (HSAs): A flexible, tax-efficient solution where employers allocate a set dollar amount for employees to spend on eligible health expenses. HSAs work well for both full-time and part-time staff, with less administrative burden
• Association health plans: Many restaurant owners are joining industry associations that offer pooled group health insurance in Canada. These plans help small businesses access better rates and coverage through collective buying power
• Wellness stipends and flexible benefits: Restaurant employees can use these fixed monthly amounts on wellness-related expenses, such as gym memberships, therapy, or insurance premiums. It’s an easy way to support staff health without committing to a full group plan
• Flexible benefits for part-time and full-time staff: Consider offering tiered or voluntary participation benefits, where part-time staff can opt in. This boosts accessibility without overextending your budget

What is the cost of group health insurance for restaurant employees?

The cost of group health insurance for restaurant employees in Canada typically ranges from $150 to $350 per employee per month, depending on the level of coverage, number of employees, and how much the employer contributes. 

For small restaurants with fewer than 10 staff, a basic plan covering essentials like prescription drugs, dental care, and paramedical services may cost on the lower end. More comprehensive plans that include vision, mental health support, and employee assistance programs (EAPs) can push costs toward the higher end.

Group health insurance for 1-10 employees

Estimated monthly cost per employee: $150 – $350

Small businesses often face the highest per-employee costs because of limited risk pooling and lower bargaining power. They also tend to choose simpler plans without extensive add-ons to keep costs manageable. These plans usually include basic health, dental, vision, and paramedical services.

Group health insurance for 11-50 employees

Estimated monthly cost per employee: $250 – $350

As the number of employees increases, insurance companies can spread risk across a wider base, resulting in slightly lower average costs per employee. Businesses in this range often begin to customize plans with additional mental health support, drug coverage, or health spending accounts.

Group health insurance for 51-100 employees

Estimated monthly cost per employee: $200 – $300

At this level, employers typically qualify for more comprehensive group benefits plans with improved pricing. Many businesses begin offering tiered plans to accommodate different employee needs and roles.

What are the alternative employee benefits options for restaurant employees? 

Not every restaurant can afford a full health insurance plan, but that doesn’t mean you can’t support your staff in meaningful ways. Many restaurants in Canada are turning to creative, low-cost alternatives that still improve employee well-being, loyalty, and performance.

• Wellness programmes for food service workers: Offer access to fitness classes, stress management workshops, or wellness stipends to support physical and mental health
• Employee Assistance Programs (EAPs): EAPs are confidential services that give employees access to counselling, financial planning, and mental health support, often at a low cost to employers
• Flexible scheduling as a supplementary benefit: Predictable hours, time-off flexibility, and schedule input can greatly improve work-life balance and job satisfaction in a demanding industry
• Education and career development benefits: Providing training, certifications, or tuition support not only enhances employee skills but also increases retention and loyalty
• Discounted or free meals: Including staff meals in your benefits package is a practical and appreciated perk that can improve morale and reduce daily expenses for employees

How to choose the right health insurance plan for your restaurant?

Selecting the best health insurance for restaurant employees means balancing cost, coverage, and flexibility. With so many options on the market, it’s important to evaluate what fits your team’s needs and your budget. 

Key factors include your team size and eligibility requirements, the types of coverage offered, flexibility for part-time staff, and strategies for cost control and tax advantages.

• Team size and eligibility requirements: Some plans have minimum employee thresholds, while others require full-time status. Consider how many staff will qualify and whether your team is mostly full-time, part-time, or seasonal
• Coverage types: Look for plans that include core benefits your employees need most, such as:
  • Medical services (prescriptions, hospital care, paramedical)
  • Dental care (preventive, major, orthodontics)
  • Vision (eye exams, glasses, contact lenses)
  • Mental health support (therapy, counselling)
    
• Flexibility for part-time and full-time staff:  Employers can offer tiered or voluntary plans to allow more employees to participate, especially in an industry where part-time work is common. Employers can also offer Health Spending Accounts (HSAs) or wellness stipends as flexible add-ons
• Cost control and tax advantages: Understand your contribution options and how they impact your taxes. You can typically deduct employer-paid health benefits from your taxes, and options like HSAs can help you manage costs while still offering meaningful support

How can I get the best small business group health insurance rates in Canada?

Getting the best small business group health insurance rates in Canada isn’t just about finding the cheapest options; it’s about securing the most value for your investment while meeting the real needs of your team. To do this effectively, you need access to multiple providers, transparent comparisons, and expert guidance. That’s where PolicyAdvisor comes in.

At PolicyAdvisor, we work with 30+ leading insurance companies in Canada, giving you a wide range of group health plans to choose from. Instead of approaching each insurer individually, we simplify the process by helping you compare quotes side-by-side. 

Our team of licensed advisors takes the time to understand your business size, employee demographics, budget, and goals. Whether you’re a small restaurant with just two staff members or a growing business with a mixed team of part-time and full-time workers, we help you build the perfect benefits plan that offers real value. Schedule a call with us today!

Insurance brokers play a major role in helping small businesses get customized group insurance plans tailored to their specific team. This will include understanding the employee demographic, choosing the right amount of benefits, and even understanding the employer’s team size and budget requirements. 

However, when it comes to investing in custom group health solutions, employers often look for ways to offer comprehensive coverage to their employees while keeping the cost under control. 

The best group insurance brokers in Canada help small businesses cater to the diverse needs of their employees by providing customized insurance solutions. Let us understand this in detail further in the article.

How do brokers help in tailoring group benefits for small businesses?

Insurance brokers play a key role in helping small businesses get the right group health insurance plan for their employees. They assess the business’s specific needs and budget, offer customization options, such as adding riders for extra coverage, assist with managing the policy, handling paperwork, renewals, and any claims that arise.

Assessing your business needs

The first step in customizing group insurance for small businesses requires a thorough assessment of your business’s needs. Your insurance broker will mostly: 

• Examine your employee demographics, such as age, family status, etc 
• Identify the health concerns of your employees and check whether their medications are covered
• Consider your budget restrictions
• Assess how custom group benefits align with your business objectives

This assessment allows small business group insurance brokers to create a strategic approach that fits your business’s unique requirements.

Offering tailored plans

Small business insurance brokers compare policy offerings from multiple insurers and recommend the best plans that businesses can choose based on their preferences. These plans may include group health insurance, life insurance, disability insurance, dental plans, vision care, and other specialized benefits. 

The right custom group benefits insurance broker will not simply recommend the cheapest group health insurance plan. Instead, they will help you compare premium costs, coverage levels, and other additional benefits to choose the plan that best suits your needs. 

Know the types of group health insurance plans in Canada (2025) 

Plan purchase and management

Insurance brokers also help in the purchase of group health insurance for small businesses, along with its ongoing management. Once a plan is selected, brokers help in the purchase process as well as the plan’s setup.

They also offer continuous plan management services, which include managing renewals, assisting with claims, and offering ongoing support. 

Add-on services and wellness programs

Another important way to tailor group health insurance for small businesses is by adding extra benefits that improve the standard coverage. Reputable insurance brokers like PolicyAdvisor help small businesses choose multiple riders, such as critical illness insurance or accidental death and dismemberment (AD&D) riders, which are often not included in base plans but are important for the overall well-being of their employees.

Moreover, small business group insurance brokers also help businesses set up wellness programs that focus on keeping employees healthy. These programs not only support employees’ health and satisfaction but can also lead to higher employee retention in the long run.

Learn about the importance of mental health coverage for employees

Managing compliance

With an extensive knowledge of current insurance laws and regulations, brokers also help in managing any compliance-related concerns. 

They ensure that the selected insurance plan complies with Canada’s insurance laws and regulations. Moreover, they also keep the small business owner updated with any changes in the regulations over time. This practice helps in reducing legal complications and penalties arising from non-compliance.

Know the benefits of small business group health plan customization

Which are the best group insurance companies for small businesses?

Many insurance companies offer a broad range of group insurance for small businesses. Here is a list of some group insurance companies that you can choose from.

Group health insurance is crucial for Canadian startups as it helps attract and retain their employees for the long term. Not only this, a group insurance plan also offers comprehensive coverage beyond provincial healthcare, thus providing financial security in times of need. 

Recent data from the Canadian Government shows that 10% to 16% of new startups in Canada hire their first employee within their first year, so startup founders should focus on offering employee benefits from the start.

In this guide, we will explore employee health benefits for startups, how to choose an affordable group health insurance for startups, and the key benefits of offering employee benefits in Canada.

Why do startups in Canada need group health insurance?

Due to increasing competition for skilled workers and their expectations, group health insurance for startups is crucial to attract and retain employees. Apart from this, having a comprehensive group health insurance in place is also beneficial to get tax advantages for startups. 

Here are some key reasons for startups to invest in a group benefits plan for their team:

Rising employee expectations for health benefits

One of the major reasons to have an employee benefits plan for your startups is the rising expectations of employees. According to the Sanofi Canada Healthcare Survey, 82% of Canadian employees consider health benefits very important when deciding whether to stay with their current company. This makes it evident that employees consider group health insurance essential before joining a company

Talent attraction and retention through group health insurance

Group health insurance for startups not only helps in attracting employees but also in retaining them in your team. Recruiting becomes easier and effective when startups offer comprehensive employee benefits plans. 

Moreover, startups in Canada offering group health benefits report 35% less turnover than those without any plan. Startups health insurance also helps in supporting your employees’ well-being, thus contributing to the overall growth of the company. So, to attract employees and retain them for the long term, especially when you have just started your business, you must get a group benefits plan.

Tax benefits of group health insurance

Group health insurance for startups offers tax advantages for employers. Premiums paid by Canadian businesses are considered tax-deductible business expenses. This means startups in Canada can lower their tax burden by opting for group health insurance for their employees.

Not only this, premiums paid for group health benefits are generally exempt from GST/HST in Canada, reducing the overall tax impact on both parties. GST refers to taxes that apply to most supplies of goods and services made in Canada.

What does a typical group health insurance plan cover?

A standard group health insurance plan in Canada typically includes coverage for prescription drugs, dental and vision care, mental health support, paramedical services like physiotherapy and chiropractic care, and virtual healthcare options. 

These benefits help employees manage everyday health costs and improve overall well-being, making group plans an essential part of a startup’s compensation package.

Group health plans in Canada typically cover the following conditions: 

• Prescription drugs: A group insurance plan in Canada offers coverage for prescription drugs, helping employees manage their out-of-pocket expenses

• Dental and vision care: Standard employee benefit plans also cover dental and vision care. These plans include regular check-ups, dental cleanings, basic dental procedures, eye exams, and corrective lens coverage

• Mental health support: Support for mental health under health insurance coverage in Canada has become important in recent times. Coverage for mental health generally includes counselors, therapists, and psychiatrist services. Employers also offer an Employee and Family Assistance Program (EFAP) for the well-being of employees

• Paramedical services: Paramedical services include multiple treatments such as physiotherapy, massage, chiropractor services, and acupuncture
• Virtual care options: Popular particularly after COVID-19, most group insurance plans in Canada offer virtual care services. This includes online appointments for busy employees who struggle to attend in-person appointments

Read more about types of group health insurance plans in Canada

Affordable group health insurance for small businesses and startups in Canada

Many startup founders assume that group health insurance is only for large companies, but that’s a common misconception. In reality, Canadian group health insurance is available for small teams with as few as two employees and can be surprisingly affordable.

Group insurance plans are scalable and flexible, making them ideal for startups looking to provide essential employee benefits. Some providers offer tiered employee insurance plans where the employer covers a basic plan, and employees have the option to pay for additional coverage, such as dental or vision.

You can also customize group health insurance to match your team’s needs and your startup’s budget. With access to over 30 insurance providers, PolicyAdvisor’s licensed advisors help you compare the most affordable health insurance for startups in Canada and choose a plan that works for your business.

How much does group health insurance cost for Canadian startups?

The cost of group health insurance for startup companies in Canada varies based on several key factors, but it doesn’t have to break your budget. With the right provider and plan design, even early-stage startups can offer affordable employee insurance tailored to their team.

Key factors that affect group health insurance costs for startups:

• Number of employees: Larger teams often receive lower per-person premiums due to risk sharing across a bigger group. However, plans are still accessible for startups with just 2 or 3 employees
• Level of coverage: Basic health plans are more affordable and cover essential benefits such as prescription drugs and virtual care. Comprehensive plans with dental, vision, mental health, and paramedical coverage will cost more
• Provider reputation: Leading Canadian insurers may charge slightly higher premiums, but offer added value through faster claims processing, stronger customer support, and better plan flexibility
• Custom add-ons: Adding optional coverage like life insurance, long-term disability insurance, or Health Spending Accounts (HSAs) can increase premiums, but they also enhance your overall employee value proposition

The cost of group health insurance for startups will vary based on the above-mentioned factors. Typical costs vary between:

• Basic Plan: $80–$200/month per employee (covers essentials like prescription drugs and virtual care)
• Standard Plan: $100–$250/month per employee (includes dental and vision)
• Enhanced Plan: $150–$350/month per employee (comprehensive coverage, e.g., mental health, paramedical services)

Group health insurance for pastors in Canada protects the well-being of clergy serving faith communities. According to research by the CHLIA in 2022, 90% of health insurance policies in Canada were purchased as part of a group benefits plan. 

Churches choose group health insurance to deliver comprehensive coverage to clergy while controlling costs. In this guide, we’ll discuss Canadian group medical insurance for churches and pastors, its benefits, costs, and flexible alternatives.

Why is group health insurance important for churches and pastors?

Churches offer health insurance for pastors and staff as a part of their employee benefits program to showcase commitment, compassion, and a long-term vision for ministry. Health insurance for pastors helps with fulfilling their unique demands, providing coverage even with varying employment status. 

Providing employee benefits to pastors strengthens staff well-being, boosts morale, and positions the church as a responsible employer in both spiritual and practical terms.

Here are a few reasons why church health insurance fir clergy in Canada is important:

• Pastors face unique demands: They often work irregular hours, carry emotional burdens, and struggle to find personal time. Accessible physical and mental health care becomes essential
• Employment status varies: Many pastors operate in a dual capacity—as employees and self-employed ministers, making it difficult to access standard health plans. Churches must find tailored solutions
• Health security protects ministry continuity: Reliable insurance helps pastors and staff cover medical expenses and maintain overall wellness
• Strong benefits support recruitment and retention: When churches offer group health benefits, they increase their ability to attract and keep experienced, committed ministry professionals
• Benefits align with mission and values: Caring for leaders reflects Christian principles of spreading kindness, compassion, and service

What are the essential group health insurance coverages for pastors in Canada?

Most church health benefits plans in Canada include core health coverage such as hospital visits, dental care, vision care, prescription drug coverage, etc. These plans also include optional features like chiropractic care, mental health services, disability payout, and accidental death and dismemberment (AD&D) coverage, etc. 

• Extended health benefits: These plans typically include prescription drug coverage, hospital stays, paramedical services like massage therapy, chiropractic care, and physiotherapy, as well as durable medical equipment
• Dental care: Churches often provide basic and preventive dental care such as cleanings, exams, fillings, and extractions. Some plans also cover more advanced procedures like crowns or root canals
• Vision care: Though optional, many health insurance plans for church employees include coverage for eye exams, glasses, or contact lenses, especially helpful for aging clergy
• Prescription drug coverage: Coverage for medication is critical to managing both chronic and acute conditions. It often falls under extended health care
• Mental health services: Pastors often carry emotional and spiritual burdens. Plans that offer counseling, therapy, or psychological support are essential to promote mental wellness
• Short-term and long-term disability: These benefits offer income replacement if a pastor becomes unable to work due to injury or illness. While sometimes optional, they are highly recommended for financial stability
• Life insurance and accidental death & dismemberment (AD&D): These benefits offer financial protection to a pastor’s family in case of death or serious injury

What group employee benefits options do Canadian churches have?

Canadian churches offer group employee benefits through diverse options, including small business group plans, denominational plans, independent custom plans, HRAs, taxable stipends, HSAs, and association-based coverage

1. Group insurance plans

Many denominations and Christian associations offer group health insurance for pastors and families. These group plans often include:

• Extended health care (prescriptions, vision, paramedical)
• Dental coverage
• Life insurance and AD&D
• Short- and long-term disability coverage

These plans provide comprehensive coverage and simplify administration, especially when the provider manages everything centrally.

2. Denominational benefit plans

Large denominations, such as the United Church of Canada, the Catholic Church, and Presbyterian ministries, often offer standardized health plans for their pastors and lay employees. These benefit programs promote consistency, affordability, and alignment with the church’s organizational structure.

3. Independent group plans

Independent or non-denominational churches can partner with private insurers to create custom group benefit packages. These plans allow flexibility in choosing specific coverages like health, dental, vision, and disability insurance. Most of the mid-sized Christian congregations often find this approach effective for their staffing needs.

4. Health Reimbursement Arrangements (HRAs)

HRAs give churches a flexible and tax-efficient way to support pastors without committing to a full insurance plan. With HRAs, churches reimburse eligible medical expenses and premiums on a tax-free basis. The HRA model works especially well for small congregations with tight budgets.

5. Taxable stipends

When churches cannot offer formal insurance, they may choose to provide a monthly stipend. Pastors can then use this amount to buy individual health insurance. Though this option lacks tax-free benefits, it offers flexibility and respects the autonomy of self-employed pastors.

6. Health Spending Accounts (HSAs)

HSAs allow churches to set aside a fixed amount per employee for eligible medical expenses. They work as a tax-efficient alternative to full insurance and allow staff to manage their care independently. HSAs provide predictability for churches and flexibility for pastors.

7. Association-based coverage

Faith-based associations like the Canadian Council of Christian Charities often make group health coverage accessible to member churches. These plans help smaller churches access affordable benefits by pooling risk across multiple organizations.

What is the cost of group health insurance for church employees?

The cost of group health insurance for church employees in Canada varies based on the size of the church, the number of staff members, and the type of plan selected. Larger churches usually pay lower premiums per employee, whereas smaller churches may pay higher per-employee rates due to limited group size and fewer cost-sharing advantages.

Cost of group benefits for church employees in Canada

What is the minimum staff requirement for group health insurance plans?

In Canada, most insurance providers require churches to have at least a minimum of 3 to 5 eligible employees to qualify for a group health insurance plan. This group may include pastors, administrative staff, and other full-time or salaried employees within the church.

If your church doesn’t meet this threshold, consider joining a pooled plan through your denomination or a ministry association. You can also explore alternatives like HSAs or taxable stipends to provide health support more flexibly.

What are the tax considerations for churches offering group health benefits?

Churches must consider tax implications when offering group health benefit plans to their employees, especially since most operate as registered charities in Canada. Even with charitable status, they must remain compliant with CRA guidelines regarding employee compensation.

• Tax treatment of premiums: Group health benefits (including extended health, dental, vision, life, and disability) are usually non-taxable for employees when the church pays the premiums
• Charitable status impacts: Offering reasonable employee benefits does not affect a church’s charitable status. As long as the group benefits are at par with other industries and strengthen the organization’s religious mission, the CRA considers it appropriate
• Tax-efficient compensation planning: Churches can combine tax-free group benefits with modest stipends to create well-rounded compensation packages for pastors and other employees
• CRA documentation requirements: To ensure compliance with the CRA guidelines, churches should have a few mandatory documents:
  
  • Keep written benefit plan documents
  • Maintain formal employment contracts that describe offered benefits
  • Record premium payments accurately in the financial books
  • Issue T4 slips that reflect any taxable allowances or benefits

How can churches manage rising group health insurance premiums?

Churches can respond to rising premiums in several smart ways. By adjusting coverage levels (for example, choosing basic dental over full), increasing deductibles, or sharing costs with employees, they can control expenses.

They can also consider hybrid plans—combining a basic core policy with a Health Spending Account to give staff extra flexibility. Regularly reviewing plan usage and claims trends with your provider helps identify cost-saving opportunities. Working with an experienced benefits broker can help you negotiate better terms and find church-specific plans.

Can retired pastors stay on the church’s group employee benefits plan?

Some group health insurance plans allow retired pastors to stay covered through continuation or retiree plans. However, eligibility depends on the insurer’s rules and how the original policy was set up.

If continuation coverage is unavailable, churches can support retired pastors by offering a Health Spending Account or a taxable stipend. Planning ahead for retirement health care ensures pastors receive long-term support and honors their years of faithful service.

What are the alternative employee benefit options for churches in Canada?

Apart from offering traditional health insurance, Canadian churches can explore alternative benefits to support the well-being of pastors and staff. These options include wellness programs, EAPs, sabbatical policies, and retirement planning benefits. Offering such group benefits can enhance overall care, boost morale, and align with the church’s mission and resources.

• Health care sharing ministries: Though limited in Canada, some faith-based groups pool resources to cover members’ medical costs, an alternative to insurance for smaller congregations
• Wellness programs: Initiatives promoting physical, mental, and spiritual health (e.g., gym subsidies, stress management workshops) encourage holistic well-being
• Employee Assistance Programs (EAPs): EAPs offer confidential support for mental health, family, and financial issues, valuable for emotionally demanding ministry roles
• Sabbatical policies: Providing structured time off for rest and renewal can serve as a powerful health and retention benefit for clergy 
• Retirement planning integration: Including RRSP matching or pension contributions as part of a broader benefits strategy supports long-term financial health for pastors

How to choose the right group health insurance for church employees?

Selecting the best group health insurance for pastors involves balancing the unique needs of your church with practical considerations like budget, coverage, and administration. Whether you’re a small independent church or part of a larger denomination, finding the right plan requires thoughtful comparison and planning.

• Size of congregation and staff: Larger churches may benefit from full group plans, while smaller ones might opt for Health Spending Accounts or stipends
• Budget and affordability: Evaluate what your church can realistically afford in monthly premiums and out-of-pocket costs
• Denominational requirements or options: Some denominations offer or require participation in group benefit programs, often at reduced rates
• Flexibility for part-time or bi-vocational pastors: Ensure the plan accommodates pastors with irregular employment status or multiple roles
• Ease of administration and provider reputation: Choose a provider known for responsive service, simple claims processes, and reliable coverage options

How to get the best group health insurance quotes for pastors in Canada?

To get the best group health insurance quotes for pastors in Canada, churches should consider working with insurance experts who can offer customised solutions for their diverse group health insurance needs!

PolicyAdvisor partners with over 30+ top insurers in Canada to help churches create health plans based on their unique needs. Our advisors can guide churches and clergymen in choosing the right mix of coverage that can help with their overall physical and mental health requirements. 

With PolicyAdvisor, churches can easily compare quotes, control costs, and build strong, well-rounded health protection for their team. Schedule a call with us today to know more!