Canada faces a tightening labour market. In late 2024, 28.3 percent of businesses reported recruiting skilled employees as a major obstacle. Nearly 19.3 percent expected retaining skilled staff would remain a challenge, and 19.1 percent anticipated a general labour shortage. 

In addition, 49.3 percent of employers increased wages to help retain talent in 2024. Job seekers now place greater value on comprehensive employee benefits packages, often weighing them equally or more than salary. As a result, group insurance in Canada is no longer a perk, it is a strategic necessity. 

From extended health coverage to wellness programs and disability benefits, group insurance can serve as a powerful tool for both attracting top talent and improving employee retention. This guide explores how Canadian employers can use workplace benefits to build a more resilient and engaged workforce.

The Canadian talent retention crisis: Why benefits matter now

Employers report increasing challenges in recruiting and retaining employees. Over one-third predict labour-related obstacles in the coming months. Retention now costs companies 1.5 to 2.5 times the annual salary of departing employees.

Replacing staff disrupts continuity, impacts productivity and increases hiring costs. Therefore, offering a strong group benefits package can reduce turnover, improve morale and lower recruiting costs over time.

What top talent expects from employee benefits packages

Canadian job seekers increasingly seek out comprehensive group health insurance packages that address both financial protection and wellness. Priorities often include:

• Extended health and dental care: Core expectations for most employees, especially in provinces where public plans do not cover prescription drugs, vision, or dental services
• Mental health benefits in Canada: Increasingly essential as awareness grows; younger workers often prioritize virtual therapy, EAPs, and mental wellness apps as must-have benefits
• Disability coverage: Short- and long-term disability insurance offers vital income protection, especially for roles without paid sick leave or those in high-stress or physically demanding fields
• Retirement and savings plans: Group RRSPs, DPSPs, or pension matching contribute to long-term financial wellness and are valued by older workers planning for retirement
• Flexibility and customization: Modular or cafeteria-style benefits allow employees to choose what fits their life stage—this adaptability is key for multigenerational teams and remote or hybrid workforces

Younger workers, especially Millennials and Gen Z, tend to value mental health resources and workplace wellness programs, while Gen X and Boomers may prioritize long-term disability and retirement planning.

Core group insurance benefits that attract top candidates

Employers can make group insurance plans stand out with valuable and relevant coverage. The most impactful features include:

Group insurance features that help retain top talent 

Employers competing for top talent in today’s labour market must go beyond standard health and dental plans. Advanced group health insurance plans, particularly those that promote wellness, support dependents, and foster financial security play a critical role in long-term employee retention. When thoughtfully designed, these features reinforce a company’s commitment to employee wellbeing and career longevity.

Wellness programs and preventive care

An effective benefits strategy supports not just physical health, but mental and emotional wellbeing. Integrating wellness into group insurance increases engagement and reduces long-term absenteeism.

• Employee Assistance Programs (EAPs): Confidential counselling and crisis support services help employees manage stress, family issues, or financial challenges
• Wellness Spending Accounts (WSAs): These provide flexible reimbursement for fitness, mindfulness, or personal wellness expenses not typically covered by traditional plans
• On-site or virtual mental health support: Direct access to therapists, psychologists, or wellness coaches boosts mental health outcomes, especially in remote or high-pressure roles
• Preventive care and health screening: Coverage for screenings (e.g., heart, diabetes, cancer) and vaccinations helps identify health issues early and reduce future claims

Family coverage and dependent benefits

Support for employees’ families has become a competitive differentiator in benefits planning. These features improve employee loyalty, especially among those balancing caregiving responsibilities.

• Extended coverage for spouses and children: Helps reduce out-of-pocket healthcare costs for the household
• Parental leave top-ups: Offering additional paid time-off encourages retention during life transitions
• Fertility treatment support: Coverage for IVF, IUI, or adoption-related expenses appeals to younger employees and signals inclusivity
• Dependent Care Spending Accounts: Allow employees to offset daycare or eldercare costs using pre-tax dollars

Retirement and financial planning benefits

Long-term financial security is a major factor in employee retention—particularly for Gen X and Boomers approaching retirement.

• Group RRSPs with employer matching: Encourages disciplined savings while offering a tax-effective compensation tool
• Defined contribution or defined benefit pension plans: Provide predictable retirement income, highly valued in stable industries
• Stock purchase plans (ESPPs): Promote a sense of ownership and align employee performance with business success
• Financial education and advisory tools: Access to financial literacy resources, budget apps, or advisor consultations supports overall financial wellbeing

Industry-specific group insurance strategies in Canada

Each industry presents unique risks and employee expectations. Customizing benefits to meet sector-specific needs enhances program effectiveness and relevance.

Employee benefits for the technology sector

• Flexible work health coverage: Plans that adapt to hybrid or fully remote work environments
• Enhanced mental health tools: Apps, coaching, and digital platforms tailored to high-stress, screen-heavy roles
• Virtual care access: Essential for distributed teams who may lack in-person provider access
• Learning and development credits: Support career growth through certification reimbursement or course funding

Employee benefits for healthcare and professional services

• Continuing education coverage: Keeps employees up-to-date with licensing or professional development requirements
• Professional liability insurance: Protects employees in regulated roles, especially clinicians and advisors
• Enhanced disability plans: Tailored to the high burnout risks and physical demands of frontline work
• Sabbatical or mental health leave: Encourages long-term retention and mitigates burnout

Employee benefits for manufacturing and trade

• Enhanced injury and rehabilitation benefits: Crucial for employees in physically demanding roles or hazardous environments
• Shift worker benefit customization: Supports workers with irregular hours through flexible scheduling and claim support
• Occupational health support: On-site clinics, ergonomic assessments, and return-to-work programs lower lost time and improve safety culture
• Union-standard compliance: Aligns benefits with negotiated contracts and helps maintain labour relations

Which providers offer group insurance in Canada?

Top group insurance providers in Canada include Sun Life, Canada Life, Manulife, Green Shield Canada, Desjardins, Empire Life, and Equitable Life. 

Top companies offering group benefits plans in Canada

Group insurance for small businesses in Canada offers a cost-effective way to provide health benefits by pooling risk across employees, making employee benefits far more affordable than individual health plans. 

With over 27 million Canadians now covered by health insurance, mostly through workplace plans, offering group benefits has become a powerful tool for small businesses to attract and retain talent. 

In this guide, we’ll show you how small businesses in Canada can get affordable group insurance plans while getting the most value from every dollar spent.

Why does offering affordable group health insurance matter?

Group insurance spreads risk across multiple employees, significantly reducing individual costs while providing access to vital health benefits. In 2024, Canada’s life and health insurers paid out $135 billion in benefits, averaging $370 million per day. This includes $50.2 billion for supplementary health, disability, and accident coverage, a 14% increase from 2023.

By investing in group health insurance, small businesses also contribute to a larger system that employs over 170,000 Canadians and provides coverage to over 100 million people worldwide. Group insurance is not just a benefit, it’s a proven strategy for fostering productivity, loyalty, and long-term business growth.

What is the average cost of group health insurance for small businesses?

Small businesses in Canada typically pay between $80 and $200 per employee per month for basic group health insurance. Enhanced group health insurance plans can cost between $150 and $350 per month per employee.  

Which insurance companies in Canada offer affordable group health insurance plans?

Leading Canadian Insurance companies like Sun Life, Canada Life, Manulife, Desjardins, Green Shield Canada, Medavie Blue Cross, Empire Life, Equitable Life, and offer customized solutions that meet the needs of small businesses, growing startups, and mid-sized enterprises alike.

Sun Life Group Benefits 

• Best for: Medium to large businesses looking for comprehensive digital tools and wellness integration
  
• Why PolicyAdvisor recommends:
  
  • Digital tools for administration: Offers a user-friendly digital enrollment and management platform to streamline employee onboarding, benefits management, reports, and billing
  • Lumino Health Virtual Care: Provides access to physical and mental health resources, including consultations with specialists via virtual platforms
  • My Sun Life mobile app: Enables employees to submit extended health care (EHC) claims and receive payments within 24–48 hours
  • Diversity, equity, and inclusion (DE&I) coverage: Includes unique offerings like gender affirmation coverage to support diverse employee needs
  • Comprehensive coverage options: Includes health, dental, vision, paramedical services, and emergency travel coverage, with flexible plans ranging from basic to enhanced
  • Travel insurance integration: Standard and enhanced plans include travel insurance coverage for up to 60 days, ideal for employees who travel frequently
  • Sustainability focus: Incorporates sustainable practices, such as investments in green assets, aligning with broader environmental and social goals

Canada Life Group Benefits

• Best for: Small to mid-sized businesses needing flexible plan design and strong provider networks
  
• Why PolicyAdvisor recommends:
  • Extensive provider network: Offers access to a nationwide network of healthcare providers for direct billing and care access
  • Digital admin tools: Provides online enrollment, management, and billing tools for efficient plan administration
  • Drugsolutions® program: Focuses on affordable medication coverage, balancing cost and care for employees
  • Expat and newcomer plans: Tailored health coverage options for international employees or those new to Canada
  • Comprehensive benefits: Includes health, dental, life, and disability insurance, with customizable options to suit diverse workforces
  • Wellness programs: Emphasizes employee well-being with resources for mental and physical health

Manulife Group Benefits

Best for: Employers investing in employee health and retention through wellness and virtual care
Why PolicyAdvisor recommends:

• Workplace Advisor: An employee assistance program for small businesses with 2 to 50 members and provides unlimited access to various forms of short-term counselling for employees and eligible dependents. Additional features include:
• Diverse offerings: Toll-free access to manager coaching, online human resource library, online courses for leaders and plan members, eldercare and childcare search resources, and trauma response services
• Health eLinks®: An online knowledge center promoting health and wellness that includes an online health risk assessment (HRA) for plan members. It helps participants track health results, provides access to valuable resources and action plans, and encourages proactive health management
• Health Service Navigator®: This serves as a one-stop access point for integrated health tips and medical condition information. It provides resources to navigate the Canadian healthcare system and offers access to world-class doctors for second opinions on serious illnesses
• Resilience® Program: This program is available for groups with a minimum of 25 members. This offers confidential counselling and health management services. This program also enhances wellness offerings, fostering a supportive environment for employee health and well-being

Medavie Blue Cross Group Benefits

Best for: Atlantic Canadian and Quebec businesses needing regional expertise and competitive rates

Why PolicyAdvisor recommends:

• Connected care platform: Provides access to leading health providers with preferred pricing via the Medavie Mobile app or online portal
• Online doctors benefit: Offers year-round access to Canadian-licensed physicians for virtual care, enhancing employee health access
• Cost plus option: Enhances plans with up to 100% coverage for key employees
• Flexible dependent coverage: Extends coverage to non-traditional dependents (e.g., parents or grandparents) if eligible under CRA guidelines
• Group assured access: Ensures employees and families have access to affordable personal health plans with no exclusions for pre-existing conditions, available in Atlantic Canada
• Wellness and health management: Emphasizes member well-being with wellness programs and extensive online self-service options

Empire Life Group Benefits

Best for: Startups and smaller teams that want fast, no-fuss onboarding and affordable rates
Why PolicyAdvisor recommends:

• Flexible group benefits: Offers customizable health, dental, life, disability, and critical illness plans tailored to employee and family well-being
• Competitive pricing: Provides cost-effective plans with innovative offerings for small to medium-sized businesses
• Wellness programs: Includes resources to support employee health and productivity
• Health Spending Accounts: Offers options for employees to cover additional health-related expenses

Equitable Life Group Benefits

Best for: Growing businesses wanting scalable plans and reliable advisor support
Why PolicyAdvisor recommends:

• EZBenefits plan: This is a pooled plan that small businesses (3–35 employees) can select to access basic plan options. Since it is pooled, it comes with less risk, and fewer premiums increase over time. EZBenefits offers four tiers of coverage (Bronze, Silver, Gold, and Platinum) without deductibles, allowing small businesses to select benefits that suit their needs and budgets
• Digital tools: The EZBenefits plan includes digital tools like the EZClaim Mobile app for submitting claims and accessing benefits
• Health Spending Account (HCSA): Reimburses non-traditional expenses like cosmetic surgery or prescribed over-the-counter medication
• Taxable Spending Account (TSA): Offers flexible spending options with balance carry-forward or use-it-or-lose-it models
• Ezclaim system: Enables quick claim submissions via a secure web portal or mobile app
• Long-term price stability: Provides predictable pricing for health and dental benefits, ideal for budgeting
• Healthconnector solutions: Supports employees with severe illness or mental health issues, improving productivity and reducing absences

Employee wellbeing is no longer a perk—it’s a workplace priority. As expectations shift and employees demand more inclusive, personalized, and wellness-driven benefits, employers must rethink how their group insurance plans support physical, mental, and financial health. In fact, 89% of Canadians believe it’s important for employers to prioritize employee wellbeing. This makes employee benefits a clear benchmark for a competitive workplace culture.

In this blog, we explore why employee benefits matter in Canada, the key employee benefits trends shaping 2025, and how small businesses can adapt to these wellness-focused group health insurance plans for the Canadian workforce.

What are employee benefits in Canada?

Employee benefits in Canada are non-cash compensation provided by employers to enhance employee well-being, job satisfaction, and financial security. These benefits go beyond base salary and may include health coverage, retirement savings plans, paid leave, and wellness programs. 

Offering a competitive employee benefits package helps Canadian employers attract and retain top talent, reduce absenteeism, and support a productive workforce.

Why do Canadian employers provide group benefits to employees?

Employers in Canada offer group benefits to attract skilled talent, support employee well-being, and stay competitive in the job market. Group insurance plans help reduce absenteeism, increase productivity, and strengthen employee loyalty. 

• Attract top talent: Group benefits enhance the overall compensation package and help employers appeal to skilled professionals in a competitive Canadian job market
• Retain employees: A well-structured benefits plan increases employee satisfaction and reduces turnover by demonstrating long-term commitment to their well-being
• Support employee health: Access to extended health, dental, and mental health services helps employees manage their health proactively and reduces workplace disruption
• Lower absenteeism: Preventive care and early intervention reduce the frequency of sick days and the financial impact of long-term disability claims
• Improve productivity: Healthier, less-stressed employees are more focused, engaged, and efficient in their roles, directly impacting overall business performance
• Encourage financial wellness: Retirement and savings plans reduce financial stress and help employees plan for the future with greater confidence and stability
• Strengthen employer branding: Offering comprehensive group benefits signals that the company values its people and is committed to creating a supportive workplace culture

Top 7 employee benefits trends in Canada 

In 2025, Canadian employee benefits are evolving rapidly to meet the expectations of a hybrid, multigenerational, and wellness-focused workforce. Some of the top employee benefits trends in Canada include mental health benefits, preventive care and chronic disease management, personalized spending accounts, AI-powered claims support, DEI-led benefits and more.

1. Personalized and flexible group benefits plans

Highly tailored group benefits plans

Employers are shifting away from one-size-fits-all plans by offering flexible group benefits that reflect individual employee needs, health status, family structures, and work styles.

Modular plans and Health/Wellness Spending Accounts

Modular benefits let employees build their own coverage from a plethora of benefits options. These plans are paired with Health and Wellness Spending Accounts. They can allocate pre-tax or taxable credits to therapy, massages, yoga classes, dental services, or even home office ergonomics.

Add‑ons for fertility, pet insurance, and lifestyle perks

Canadian wellness benefits plans are increasingly offering fertility treatments (IVF, egg/sperm freezing), surrogacy support, and adoption coverage. Pet insurance, legal services, nutritional counselling, and even identity theft protection are becoming valuable add-ons for millennial and Gen Z employees.

2. Holistic mental health and wellness support

Expanded mental health and wellbeing coverage

Mental health group benefits in Canada cover licensed psychologists, psychotherapists, and social workers under extended health plans. These benefits often come with increased annual maximums of $1,000–$5,000.

Expanded EAPs, virtual therapy, and wellness apps

EAPs offer 24/7 access to short-term counselling, crisis support, legal advice, and addiction services. Employers are also integrating app-based wellness solutions like Headspace, Calm, Inkblot, etc, into their benefit offerings.

Mental health parity in group insurance plans

Insurers are moving toward full parity between mental and physical health, meaning fewer exclusions and equal access across providers and specialties.

Stress‑management days, mental health PTO, and proactive care

Companies are introducing paid mental health days, stress reset leaves, mindfulness training, and mental health coaching to prevent burnout among their workforce.

3. Focus on preventive care and chronic condition management

Biometric screenings, health risk assessments, and gym perks

On-site or digital biometric tests (cholesterol, glucose, blood pressure) and health risk assessments help employees understand their baseline health. Benefits also include gym memberships, ClassPass subscriptions, or fitness device reimbursements.

Weight loss, diabetes reversal, and condition-specific coaching

Programs supporting sustainable weight loss, diabetes prevention or reversal (like Virta Health), thyroid management, and PCOS or menopause support are growing in popularity within group benefit plans.

Partnerships with digital wellness platforms and coaches

Employers are collaborating with platforms like League, TELUS Health, and Wellbeats to deliver personalized coaching in fitness, nutrition, sleep hygiene, and preventative care, both in-person and online.

4. Inclusive and sustainable benefit offerings

Diversity, Equity, and Inclusion (DEI)-focused benefits

Benefits now include gender-confirming surgeries, hormone therapy, and counselling for trans and non-binary employees. Culturally inclusive options such as additional religious holidays and indigenous traditional practices are being integrated into plans.

Inclusive family planning

Coverage for fertility treatments, gestational surrogacy, donor sperm/egg services, and adoption reimbursement helps employees of all identities and orientations build families on their terms.

Sustainability-driven perks

Environmental, Social and Governance (ESG)-aligned benefits now feature green commuting allowances (e-bike credits, transit passes), carbon offset options for business travel, and eco-friendly WSA categories like clean products and sustainable food subscriptions.

5. Tech-enabled solutions for hybrid and remote teams

Mobile-first benefits for hybrid and remote workers

Employers are adopting mobile apps and cloud-based dashboards that let employees access their benefits, submit claims, schedule appointments, and receive real-time plan updates from anywhere.

Remote-friendly medical care

Virtual primary care, mental health support, dermatology consults, and e-pharmacy delivery are standard offerings, ensuring access regardless of an employee’s physical location.

Flexible coverage for part-time, freelance, and gig workers

Portable, non-traditional benefit structures offer scaled-down but meaningful coverage (e.g. dental, therapy, life insurance) for contract, freelance, and part-time employees who are often excluded from traditional plans.

Cross-regional tax and compliance solutions

Plans are being designed with province-specific tax implications, OHIP coordination, and multi-region eligibility in mind, helping employers stay compliant while supporting distributed teams.

6. Financial wellness and elder care support

Student loan repayment, financial coaching, and education tools

Employers are offering direct student loan repayment assistance, access to robo-advisors, budgeting tools, RRSP education, and certified financial coaching to promote long-term financial stability.

Elder care support, caregiver leave, and coordination services

With a growing sandwich generation, employers are introducing caregiver leave policies, elder care navigation services, and digital tools to assist with appointment scheduling, long-term care planning, and financial decision-making.

7. AI-driven digital-first benefits administration

Predictive analytics, smart enrolment, and AI-powered claims

AI is transforming benefits by automating enrolment decisions, flagging usage trends, and accelerating claim approvals. Smart platforms recommend plan options based on life stage, family status, or claim history.

Mobile portals, self-service dashboards, and real-time tracking

Modern platforms allow employees to manage claims, review coverage, schedule services, and track reimbursements through intuitive mobile and web-based interfaces.

Can small businesses also offer advanced employee benefits trends?

Yes, small businesses in Canada can offer advanced employee benefits that reflect the latest evolving trends. Due to flexible plan designs, low-cost plans, and digital health tracking platforms, small employers can now compete with larger organizations in attracting and retaining talent. 

Small businesses can also offer cost-effective solutions like Health and Wellness Spending Accounts, virtual care, mental health support, and even fertility or gender-affirming benefits. These are all scaled to their workforce size and budget. Many group insurance providers offer plans tailored for small businesses with as few as 2–5 employees. 

With the rise of hybrid work, inclusive benefits, and AI-powered administration, small businesses can deliver modern, competitive, and compliant group insurance programs without overwhelming costs or complexity.

How do inclusive group benefits improve workplace culture in Canada?

Inclusive group benefits are a powerful tool for building a healthier, more equitable workplace culture in Canada. These employee benefits can help create a culturally diverse team by encouraging a stigma-free work culture. It will help in cultivating peer respect among colleagues and appreciating a diverse workforce. 

• Promoting a culture of belonging: Employees who see their needs reflected in group benefits, like gender-affirming care or fertility support, feel valued, which boosts morale and fosters long-term commitment
• Creating space for open, stigma-free dialogue: Inclusive coverage encourages open conversations around mental health, family planning, and identity, reducing silence and shame in the workplace
• Embedding equity into organizational values: When underrepresented needs, such as menopause or mental health day-offs, are covered, it shows the company values fairness, which builds trust across diverse teams
• Normalizing different life experiences: Recognizing varied family structures, religious holidays, or transition-related leaves helps employees feel safe being themselves at work, reducing social friction
• Cultivating team empathy and peer respect: Exposure to diverse benefits options sparks awareness among coworkers, encouraging more empathetic, inclusive interactions within and across teams
• Strengthening retention through authentic inclusion: Employees are more likely to stay in workplaces where benefits match their lived realities, reinforcing a culture of loyalty, support, and inclusion

How can employers create the best wellness-focused group health insurance plan in Canada?

To build a successful wellness-focused group health insurance plan in Canada, employers must go beyond basic coverage. By understanding employee needs and integrating digital tools, they can create personalized, cost-effective plans that support total wellbeing. 

• Using employee feedback to guide plan design: Conducting regular employee surveys helps identify specific health, mental wellness, and financial concerns so employers can offer benefits people actually use
• Choosing insurers with built-in wellness features: Employers can enhance their group health insurance by partnering with providers that offer mental health support, wellness coaching, and financial wellness programs
• Applying AI and data analytics for smarter benefits: Using digital platforms and analytics tools helps employers track benefits engagement, reduce costs, and personalize coverage based on real-time employee needs

How to get the best employee benefits quotes in Canada?

Getting the best employee benefits quotes in Canada starts with understanding your business needs and comparing plans from multiple insurers. Whether you’re a growing startup or an established company, finding affordable group benefits that offer real value can be challenging without expert guidance. That’s where PolicyAdvisor comes in!

Our trusted, licensed advisors work closely with you to compare quotes from over 30 of Canada’s top group insurance providers. This ensures that you find the most cost-effective solution for your small business, even if you have as few as two employees. We help tailor your employee benefits plan to match your budget and coverage goals, enabling you to secure the most affordable group benefits quotes. 

Our advisors continue to support you after the purchase through our dedicated after-sales service. Schedule a call with us today to find the best employee benefits plan for your workforce!

Tired of rising group insurance premiums and limited control over your benefits plan? According to a recent report, a fully insured group benefits plan can cost up to 33% more to operate than an Administrative Services Only (ASO) plan. ASO plans offer a smarter, more flexible alternative, allowing employers to fund employee health and dental claims directly while avoiding insurer markups.

This self-funded employee benefits model is ideal for medium to large businesses seeking transparency, cost savings, and customization. In this guide, we break down how ASO plans work, what they cover, and whether they’re right for your organization.

What is an Administrative Services Only (ASO) plan in Canada?

An Administrative Services Only (ASO) plan in Canada is a self-funded employee benefits arrangement where the employer pays for the cost of health and dental claims out of pocket, rather than purchasing traditional insurance. 

However, the employer outsources the administration of the plan, including claims processing, reimbursements, and reporting, to a third-party benefits administrator or insurance company. Under this model, the employer assumes the financial risk for employee claims but avoids paying fixed premiums to an insurer. 

ASO plans are commonly used by mid-sized and large Canadian businesses looking for greater cost control, flexibility, and transparency in their employee health benefits.

What does an ASO plan cover?

Administrative Services Only plans in Canada offer a wide range of customizable health and dental benefits, allowing employers to tailor coverage based on the needs of their workforce. These benefits may also include wellness funds, HSAs, vision care, mental health benefits, and more.

• Prescription drugs: Employers can cover a wide range of medications, including chronic illness treatments, antibiotics, and specialty drugs
• Dental care: ASO dental benefits usually include basic dental services such as exams, cleanings, fillings, and extractions, major dental treatments like crowns, bridges, and dentures, orthodontic treatments including braces and clear aligners, etc
• Extended healthcare: Employers can include a variety of paramedical and therapeutic services, such as physiotherapy, massage therapy, chiropractic care, naturopathy, podiatry, acupuncture, etc
• Vision care: ASO plans commonly cover routine eye exams, prescription eyeglasses, and contact lenses. These plans may also cover laser eye surgery, depending on the coverage limits set by the employer
• Medical equipment and supplies: Employers may choose to cover medical devices and supplies such as custom orthotics and orthopedic shoes, mobility aids like walkers or crutches, CPAP machines, compression garments and diabetic care products
• Emergency travel medical coverage: Some ASO plans include out-of-country emergency medical benefits, covering urgent hospital or medical expenses for employees travelling abroad
• Health Spending Accounts (HSAs): Employers incorporate HSAs into an ASO plan to provide extra flexibility. These accounts allow employees to claim a broader range of eligible medical expenses under CRA guidelines, including dental, vision, mental health, and wellness services
• Employee and Family Assistance Programs (EFAPs): Employers can incorporate EFAPs to offer confidential support services. These may include counselling, mental health support, legal or financial advice, and wellness coaching
• Wellness funds or Lifestyle Spending Accounts (LSAs): Some ASO plans include LSAs to promote employee wellness. These accounts may reimburse costs related to gym memberships, nutrition services, meditation classes, or ergonomic equipment

How much do ASO plans cost in Canada?

The cost of ASO (Administrative Services Only) plans in Canada depends on two main components: actual claims paid and administration fees charged by the third-party provider. Since employers take on the financial risk, understanding how these costs work is crucial for budgeting and planning.

• Employers pay all health and dental claims directly: Under an ASO arrangement, you cover the full cost of your employees’ medical, dental, vision, or paramedical claims as they arise. These expenses vary year to year based on employee usage, making this portion of the ASO plan cost unpredictable and dependent on workforce health trends
• Administration fees typically range from 7% to 20% of paid claims. ASO administration costs cover services such as claims processing, reporting, and customer support. For small businesses, these fees typically range from 12% to 20%. Larger companies may negotiate lower admin fees, typically between 5% and 12%, depending on their plan size and complexity
• Stop-loss insurance adds protection but increases cost: Many employers purchase stop-loss insurance to protect themselves from high-cost claims. While this adds to the total ASO plan cost in Canada, it caps the employer’s risk and is especially valuable for small to mid-sized groups
• Setup fees and taxes may apply: New groups may face one-time setup charges, and applicable taxes such as premium tax (in some provinces) or HST/GST may be added, depending on your location and provider

Cost example

If your team incurs $100,000 in annual claims, and your administration fee is 10%, you’ll pay an additional $10,000 in admin costs. That brings your total base cost to $110,000, excluding stop-loss premiums or other incidental fees.

What factors affect the cost of an ASO plan in Canada?

Several key factors influence the total cost of an ASO (Administrative Services Only) plan in Canada, including company size, employee demographics, level of benefits provided, claims experience, stop-loss insurance, etc.

• Group size and employee demographics: The number of employees and their age distribution directly impact ASO costs. Larger groups with younger employees tend to have more predictable and lower claims
• Level of benefits provided: Offering richer benefits like extended health care, orthodontics, or vision coverage increases the total cost of your ASO plan. Basic coverage leads to lower claims and reduced employer expenses
• Claims experience and usage trends: Historical claims data plays a critical role. High past usage of health and dental benefits signals higher future costs and increased financial risk for the employer.
• Administrative fees charged by the TPA: Third-party administrators typically charge 7% to 20% of total claims. Small businesses often face higher admin rates due to a smaller group size and lower bargaining power
• Stop-loss insurance: Adding stop-loss insurance helps limit financial exposure from high-cost claims. While it raises total ASO plan costs, it adds stability and predictability to your benefit budget

Which are the best companies offering ASO plans in Canada?

Choosing the best ASO plan in Canada can significantly impact your employee benefits experience, cost predictability, and claims management. Some of the best companies in Canada that offer ASO plans include Sun Life, Canada Life, Desjardins, Equitable Life, Empire Life, etc.

• Sun Life: Sun Life offers customizable health, dental, drug, and wellness benefits. It is ideal for medium to large businesses looking for flexible ASO plan design, virtual care options, and high coverage ceilings
• Canada Life: It provides a wide range of group benefits, including health, dental, life, and disability. Known for its broad offerings and industry experience, Canada Life supports businesses of all sizes based on their unique requirements
• Desjardins: Desjardins is perfect for companies seeking holistic health solutions for the comprehensive needs of their employees. It specializes in offering life, AD&D, mental health, virtual care, and even gender affirmation coverage
• Equitable Life: It delivers ASO plans with health, dental, AD&D, and spending accounts. Known for its EZClaim mobile app, tiered plan options, and fraud detection systems, Equitable Life is a solid choice for small businesses across Canada
• Empire Life: Empire Life provides its 20Plus ASO plan for businesses with over 20 employees. It offers self-funded health and dental options suited for lower-risk benefit categories

How does an Administrative Services Only (ASO) plan work in Canada?

An ASO plan in Canada allows employers to self-fund health and dental benefits while outsourcing claims administration to a third-party provider. Here’s how an ASO plan works in Canada:

1. The employer creates a customized benefits plan by selecting which health, dental, vision, and paramedical services to include
2. The employer funds eligible claims directly instead of paying monthly insurance premiums
3. A third-party administrator (TPA) manages all administrative tasks, including claims processing, employee reimbursements, and recordkeeping
4. The employer pays a separate administrative fee to the TPA for handling day-to-day operations
5. Employees submit claims through the TPA, which reviews and processes them based on the plan’s design and limits
6. The TPA provides regular monthly reports on claim trends to the employer, offering insight into claim trends, cost patterns, and plan performance
7. Employers can include stop-loss insurance to limit financial exposure from large or unexpected claims
8. The plan can be adjusted annually based on employee usage, budget considerations, or workforce needs

Who administers ASO plans in Canada?

In Canada, third-party administrators (TPAs) and insurance carriers typically administer ASO (Administrative Services Only) plans on behalf of employers. These providers manage all administrative functions, including claims processing, employee reimbursements, reporting, and compliance. 

Employers work with TPAs to design the plan, set coverage limits, and establish funding arrangements. The administrator ensures that claims are reviewed, processed, and paid according to the plan’s terms. While the employer funds the claims, the administrator handles the day-to-day operations efficiently. 

Most of the leading insurance companies and independent TPAs across Canada offer ASO administration services to help businesses cost-effectively manage their group benefits.

How does an ASO plan differ from traditional group benefits?

While ASO plans offer employers the flexibility to have control over their employee benefits plan, traditional group benefits only allow employers to pay a fixed monthly premium. ASO plans provide more flexibility to employees, whereas traditional group benefits plans are fully taken care of by the insurance company. Here is a detailed comparison between an ASO plan and a group benefits plan for employers in Canada:

ASO plans vs. traditional group benefits: A comparison

What is typically excluded from an Administrative Services Only (ASO) plan?

While ASO plans in Canada offer flexibility and customization, certain health-related expenses such as cosmetic procedures, OTC medicines, minor surgeries, workplace injuries, etc, are commonly excluded from coverage. Employers must clearly define these exclusions in their plan documents to avoid misunderstandings and manage costs effectively. 

• Cosmetic procedures: ASO plans usually exclude treatments or surgeries performed solely for cosmetic or aesthetic purposes, such as plastic surgery not medically required
• Over-the-counter medications: Non-prescription drugs, vitamins, and supplements not prescribed by a licensed healthcare provider are typically not reimbursed
• Experimental or investigational treatments: ASO plans do not cover medical procedures, devices, or therapies not yet approved by Health Canada or considered experimental
• Procedures that are not medically necessary: Any treatment or service that is not deemed medically necessary by a qualified practitioner is generally excluded
• Expenses outside Canada (unless specified): Most ASO plans do not cover medical costs incurred outside of Canada unless the plan includes travel health benefits
• Workplace injuries: Medical costs related to workplace injuries are usually excluded, as these are covered under provincial workers’ compensation programs
• Third-party examinations: Medical exams required for employment, immigration, legal, or insurance purposes are typically not eligible under ASO plans
• Missed appointment fees: Charges for cancelled or missed medical appointments are not reimbursed
• Non-licensed provider services: Treatments provided by unlicensed or non-certified practitioners are generally not covered under the plan
• Late claim submissions: Claims submitted after the allowable deadline, as defined in the plan rules, are often denied

Can employers customize ASO plans based on their province?

Yes, employers in Canada can customize ASO plans based on their province to align with regional healthcare needs and provincial regulations. Since healthcare systems vary slightly across provinces, employers often adjust their ASO plan design to fill specific gaps in government health insurance plans. 

For example, an employer offering ASO plans in Alberta might include certain services already covered in Ontario’s provincial health coverage to ensure consistency for national employees. Customization of ASO plans also allows employers to meet local compliance standards, address workforce demographics, and manage costs effectively. Employers can select different coverage levels, eligible services, and maximum limits, depending on provincial requirements.

Is budgeted ASO the best option for small businesses in Canada?

A budgeted ASO plan is a group benefits arrangement where an employer pays a predictable, fixed monthly amount toward employee health and dental claims based on prior claims history.

Budgeted ASO plans offer small businesses in Canada the flexibility of self-funded benefits with fixed monthly costs. Unlike traditional ASO plans, where claims costs vary, budgeted ASO plans cap your financial exposure by setting a projected claims amount. This makes it easier for small businesses to manage employee benefits without financial surprises.

Here’s why budgeted ASO can be a smart choice for small businesses in Canada:

• Predictable monthly costs: Budgeted ASO lets employers pay a fixed monthly amount, making it easier to budget for group health and dental benefits
• Reduced financial risk: Employers don’t have to worry about sudden spikes in claims because the plan includes a pre-set claims fund and often stop-loss protection
• Surplus refunds: If actual claims fall below the estimated budget, the insurer may return the surplus to the employer, making the plan more cost-effective
• Customizable plan design: Small businesses can tailor their coverage, such as dental, vision, and drug benefits, to meet the unique needs of their workforce
• Insured plan with self-funded flexibility: Budgeted ASO plans combine the flexibility of self-funding with the administrative simplicity and peace of mind of insured plans

For small businesses with limited resources and a desire for cost control, budgeted ASO plans in Canada can offer the best balance of flexibility, affordability, and predictability. Working with trusted experts like PolicyAdvisor can help you compare top budgeted ASO providers and find the most affordable employee benefits solution for your team

Are ASO plans taxable in Canada?

Yes, ASO plans are generally taxable benefits in Canada. When an employer reimburses or pays for health or dental claims under an ASO arrangement, the Canada Revenue Agency (CRA) typically considers these reimbursements as non-taxable if they qualify as private health services plan (PHSP) benefits. 

However, any non-eligible medical expenses or taxable allowances included in the plan may be subject to income tax for the employee. Employers must structure ASO plans carefully to ensure compliance with CRA guidelines and maintain the non-taxable status of qualified benefits.

Can small businesses use ASO plans in Canada?

Yes, small businesses in Canada can use ASO plans, but they must assess their financial risk tolerance and cash flow. Unlike traditional group insurance, ASO plans require the employer to fund claims directly, which may lead to cost variability. However, small businesses with a healthy workforce and low claims volatility may find ASO plans more cost-effective than fixed premiums. 

Employers can also add stop-loss insurance to protect against high-cost claims. While larger companies more commonly use ASO plans, small businesses that want control over benefit design and cost management can also benefit from this model.

Is stop-loss insurance mandatory in ASO plans?

No, stop-loss insurance is not mandatory in ASO plans in Canada, but many employers choose to include it to manage the financial risk of potentially high claims costs.

Stop-loss insurance protects employers against any catastrophic or unexpected high claims. Employers can set a specific threshold, and any claim amount exceeding that limit is covered by the stop-loss insurer.

While stop-loss insurance brings added cost to the ASO plan, this coverage provides greater financial stability and protection, especially for mid-sized businesses with limited cash reserves. Including stop-loss insurance helps employers strike a balance between cost savings and risk control.

What are the common risks of offering ASO plans to employees in Canada?

Offering ASO plans to employees in Canada comes with several common risks that employers must carefully manage. These risks include unpredictable claims costs, financial risk exposure, employee dissatisfaction, regulatory compliance, and more.

• Unpredictable claims costs: Employers pay for claims as they arise, which can lead to unexpected financial strain during high-claim periods
• Cash flow pressure: Without fixed premiums, employers must ensure they have sufficient cash on hand to cover claim reimbursements at any time
• Financial risk exposure: In the absence of stop-loss insurance, employers bear full responsibility for catastrophic or unusually high-cost claims
• Administrative complexity: Managing an ASO plan requires coordination with a third-party administrator and more involvement in claims reporting and oversight
• Employee dissatisfaction: If coverage levels, exclusions, or reimbursement timelines are unclear, employees may feel underserved or confused
• Regulatory compliance: Employers must ensure the plan aligns with CRA guidelines and provincial health benefit regulations to maintain tax advantages

How to find the best ASO plan in Canada?

Finding the best ASO plan in Canada requires more than just comparing prices. Employers must consider plan flexibility, claims predictability, digital tools, and support. Here are a few essential steps to guide your decision:

• Compare quotes from at least 2–3 top ASO providers in Canada
• Evaluate admin fees, projected claims, and any hidden or add-on costs
• Research the provider’s claims-handling reputation and service responsiveness
• Choose providers that offer digital dashboards and transparent reporting tools

The easiest way to navigate these steps is by speaking with a licensed insurance advisor at PolicyAdvisor. We partner with 30+ top Canadian insurers to help you find the best ASO plan based on your company’s size, budget, and unique employee needs. Moreover, our experts compare quotes, explain fee structures, and ensure you lock in the most competitive rates with dedicated claims support and annual plan reviews.

What if your group insurance plan could do more than just pay the medical bills of your employees? In today’s evolving workplace, group insurance in Canada is no longer just a checkbox for employers to fill. It’s a strategic tool for building a resilient, productive workforce. With 71% of Canadian employees becoming more health-conscious in 2024 and nearly 47% relying on their workplace benefits plan for support, the demand for wellness-focused group insurance solutions is growing.

In this blog, we explore how group insurance supports employee wellness programs in Canada, what this employee benefits plan can offer, and how employers can maximize its benefits.

What is group health insurance in Canada?

Group health insurance in Canada refers to an employer-sponsored health insurance plan that provides coverage to a group of employees within a company, as well as their dependents. Employers typically offer these employee benefits plans to support employee health and well-being. Group insurance in Canada usually includes coverage for prescription drugs, dental care, vision care, paramedical services, mental health services and more.

Group health benefits in Canada play a vital role in workplace wellness programs by contributing to higher employee satisfaction, productivity, and retention. These benefits can also boost employee morale and help businesses attract top talent within a competitive marketplace.

Why do Canadian employers offer group medical insurance?

Canadian employers offer group medical insurance to improve employee health, enhance job satisfaction, and maintain a competitive edge in the labour market. Group insurance in Canada also supports employee wellness programs that help businesses increase their revenue and boost productivity.

• Enhancing employee wellness and morale: Group health benefits in Canada offer access to preventative care, mental health support, and chronic disease management, which contribute to happier, healthier teams
• Attracting and retaining top talent: Comprehensive insurance for employee well-being is a major incentive for job seekers and plays a crucial role in employee retention across competitive industries
• Reducing financial stress for employees: Employer-sponsored health insurance lowers out-of-pocket medical expenses, allowing employees to focus on work without worrying about unexpected healthcare costs
• Ensuring coverage for diverse needs: From dental and vision care to group life and disability insurance in Canada, group plans address a wide range of health concerns for employees and their dependents

What are wellness programs in group insurance?

Wellness programs in group health insurance are structured initiatives that employers in Canada offer to support the physical, mental, and emotional well-being of their workforce. Employers offer wellness programs as a part of employee benefits plans to encourage healthier lifestyles, reduce stress, and prevent chronic illnesses among employees, ultimately enhancing their overall performance.

Wellness programs may include mental health coverage, fitness incentives, nutritional counselling, preventive health screenings, and more. By including wellness benefits for employees, employers demonstrate their commitment to long-term employee health. These initiatives not only improve employee morale but also help reduce absenteeism and healthcare costs for employees in Canada

How do group insurance plans support employee wellness?

Group insurance plans support employee wellness through a variety of integrated services and programs designed to improve physical, mental, and financial health. These benefits may include Wellness Savings Accounts (WSAs), mental health services, chronic disease management, access to virtual healthcare apps, lifestyle coaching and more.

Wellness Spending Accounts

Wellness Spending Accounts (WSAs) allow employees to use a fixed amount of funds toward health-related expenses that fall outside traditional group health benefits in Canada. 

Employees can spend these funds on services like gym memberships, fitness equipment, yoga classes, meditation apps, or even massage therapy. WSAs give employees the flexibility to choose wellness solutions that best suit their lifestyles, encouraging a proactive approach to health and well-being.

Employee Assistance Programs (EAPs)

Employee Assistance Programs (EAPs) provide confidential, short-term counselling and support services for employees and their eligible family members. These programs typically include access to mental health counselling, crisis intervention, legal and financial advice, and support for issues like stress, anxiety, grief, or family conflicts. 

Therapy, counselling, and psychology services

Beyond EAPs, many Canadian group health benefits include coverage for extended therapy and psychology services. Employees can access registered psychologists, social workers, or clinical counsellors for longer-term support. 

These services may cover issues such as depression, trauma, relationship challenges, or burnout, with annual coverage limits depending on the plan. This ongoing access helps employees manage their mental health more effectively and promotes long-term wellness.

Chronic disease management and preventive care

Group insurance plans in Canada often include chronic disease management programs that assist employees living with conditions like diabetes, hypertension, or asthma. These benefits may include regular check-ups, health coaching, dietitian consultations, and medication management. 

Preventive care measures, such as biometric screenings, flu shots, and routine health assessments, are also offered to detect early signs of illness and encourage healthier living habits.

Access to virtual healthcare and wellness platforms

Access to virtual healthcare and wellness platforms is now a common feature in group insurance wellness initiatives. Employees can consult with doctors, therapists, or nurses via phone or video calls, reducing the need for in-person visits. 

Many wellness platforms also provide mental health tools, fitness tracking, sleep improvement apps, and guided meditation sessions. This digital accessibility makes it easier for employees to prioritize their health on their own schedules.

Lifestyle coaching

Lifestyle coaching is another wellness benefit often included in employer-sponsored health insurance plans. 

Certified wellness coaches guide employees through goal-setting in areas such as weight management, stress control, physical activity, and sleep quality. Coaching sessions may be delivered one-on-one, in groups, or through digital platforms.

Smoking cessation

Smoking cessation programs are designed to help employees quit tobacco use through counselling, nicotine replacement therapies, and education. These services are frequently included in group health benefits in Canada and may be supported by pharmacists or healthcare professionals. 

Financial wellness

Financial wellness support is an increasingly important component of employee wellness programs in Canada. Group insurance plans may include access to financial counselling, budgeting workshops, debt management tools, and retirement planning resources.

What are the benefits of offering group medical insurance with wellness programs?

Offering group insurance with wellness programs in Canada creates a healthier, more engaged workforce while strengthening an employer’s overall business strategy. Some of the benefits of offering wellness-focused group health insurance may include reduced absenteeism, higher employee retention and better recruitment within a competitive market.

• Reduced absenteeism and improved productivity: Wellness benefits for employees, such as mental health coverage and preventive care, lead to fewer sick days and higher on-the-job efficiency
• Enhanced employee retention and satisfaction: Employer-sponsored health insurance and personalized wellness initiatives increase job satisfaction and loyalty, reducing turnover
• Cost savings for employers in the long run: Group insurance wellness initiatives help detect health issues early, lowering long-term medical and disability claim costs
• Better recruitment outcomes in a competitive job market: Group health benefits in Canada, especially those with wellness programs, make employers more attractive to top talent seeking comprehensive support

What is the cost of a group benefits plan that supports employee wellness?

In Canada, the cost of a group benefits plan that includes wellness initiatives typically ranges from $75 to $130 per employee per month, depending on the level of coverage and services offered. Employers can choose between Basic, Standard and Enhanced plans, depending on their budget and requirements.

The total monthly cost of group health insurance also depends on company size, industry, demographics, and plan customization. Below is an illustrative breakdown for small to mid-sized businesses offering group health benefits in Canada:

Cost of wellness-focused group health insurance in Canada

*These are sample figures for different plan tiers. Actual costs may vary based on plan design, company details, and employee demographics.

Can employers customize group benefits to support wellness initiatives?

Yes, employers in Canada can customize group benefits plans to align with their wellness initiatives and meet the unique needs of their workforce. Many Canadian group benefits plans offer flexible components such as Wellness Spending Accounts (WSAs), Employee Assistance Programs (EAPs), and mental health coverage under employee benefits. 

Employers can also include options like virtual healthcare access, lifestyle coaching, or chronic disease management to promote preventive care. By offering customizable group health benefits in Canada, organizations can support diverse employee wellness goals. It also strengthens employer-employee relationships, improves overall employee engagement, satisfaction, and long-term health outcomes.

Are wellness incentives tax-deductible for employers in Canada?

Employers in Canada can generally deduct wellness incentives as business expenses, but the tax treatment varies depending on the type of plan and expense.

Health and dental benefits paid through a private health services plan (including HSAs) are fully deductible for employers and non‑taxable for employees. Similarly, extended health coverage and Employee Assistance Programs (EAPs) are usually non‑taxable to employees and fully deductible to employers.

Wellness Spending Accounts (WSAs) or Lifestyle Spending Accounts that reimburse non‑medical wellness expenses (such as gym memberships or wellness classes) remain tax-deductible for employers. However, they are considered taxable benefits to employees, and employees must report the allowance as income on their T4 slips.

What are the common challenges for employers offering group insurance with wellness plans?

While group insurance with wellness benefits offers significant value, employers in Canada often face challenges with budget constraints, implementation and management of these plans. These challenges can affect both the effectiveness of the program and employee participation.

• Cost management and budget constraints: Balancing comprehensive group health benefits with affordability is difficult, especially for small businesses trying to manage tight budgets
• Low employee awareness and engagement: Employees may underutilize wellness benefits due to a lack of awareness or understanding, reducing the impact of the wellness program
• Difficulty in customizing benefits for diverse needs: Designing flexible plans that meet the unique health and wellness needs of a diverse workforce can be complex and resource-intensive
• Compliance with Canadian employment and privacy laws: Employers must ensure that group insurance wellness initiatives adhere to federal and provincial laws regarding health data privacy and non-discrimination
• Provider limitations and rigid plan structures: Some insurance providers offer limited customization, making it hard for employers to align group benefits plans with evolving employee wellness goals

Tips for employers offering wellness-focused group insurance plans in Canada

Employers can maximize the impact of wellness-focused group insurance plans by taking a strategic and employee-centric approach. These tips may include ensuring proper customization of plans, conducting employee surveys to understand their needs and choosing the right insurance provider.

• Customizing benefits to meet employee needs: Tailor group health benefits and wellness programs based on the specific demographics, health concerns, and lifestyle preferences of your workforce
• Surveys and data-driven personalization: Use employee surveys and claims data to identify gaps and trends, then adjust benefits offerings to better support employee wellness goals
• Ensuring mental health parity in benefits design: Provide equal coverage for mental and physical health, including access to therapy, counselling, and digital mental health platforms
• Communicating benefits clearly and regularly: Promote wellness benefits through onboarding, emails, info sessions, and internal portals to boost employee awareness and usage
• Partnering with the right group insurance provider: Work with experienced insurers in Canada (such as our licensed advisors at PolicyAdvisor) who offer flexible plan design, strong wellness support, and seamless claims management

How to get the best group insurance quotes in Canada?

Finding the best group insurance quotes in Canada isn’t just about comparing prices. It’s also about choosing an insurance provider who understands your team’s unique needs and helps you build a plan that works today and scales with your business tomorrow.

At PolicyAdvisor, we work with Canada’s top-rated group insurance providers to deliver affordable wellness-focused group insurance plans for businesses of all sizes. Whether you’re a startup with just two employees or a growing organization, our experienced, licensed advisors can guide you every step of the way! 

We can help you compare quotes, customize your coverage, and secure the most competitive rates available. Schedule a call with us today and get the most affordable group insurance plan that fits your budget and needs.

Victor Insurance Managers Inc. is a leading insurance manager in Canada, known for offering flexible and customizable group insurance solutions. Rather than underwriting insurance directly, Victor designs plans by partnering with established insurers. This approach allows them to combine best-in-class coverage from multiple providers into one tailored solution.

Victor is especially well-regarded for its flexible, customizable benefits for diverse businesses (including solo entrepreneurs), and integration with cost-effective wellness options.

In this review, we’ll walk through Victor’s group insurance plan offerings, pricing, and pros and cons to help business owners determine if Victor Insurance is the right choice for their team.

About Victor Insurance

Victor Insurance Canada (formerly ENCON Group Inc.) is a Canadian managing general agent headquartered in Ottawa, Ontario, Canada, with additional offices in Mississauga and Edmonton.

As a leading managing general agent (MGA) in Canada, Victor Insurance has built a reputation for delivering specialized insurance solutions through independent brokers and advisors. 

The company specializes in group benefits for micro and small businesses, including groups with as few as one employee. Victor stands out for its flexibility, multi-carrier pricing, and robust plan design options that cover life, health, dental, disability, and wellness benefits. 

The company’s approach is notably nimble and adaptable, positioning itself as a modern insurance provider that combines decades of experience with innovative solutions for today’s business challenges.

Who should consider Victor Insurance?

Victor Insurance group benefits are best suited for Canadian businesses seeking tailored coverage, expert guidance, and value-added options beyond standard group plans. Their offerings align well with firms that need specialized protection or plan flexibility, but may not be ideal for all business types.

Victor group insurance is suited for:

• Professional service firms: Engineers, architects, consultants, and other professionals who may also require bundled professional liability coverage
• Construction and trade companies: Businesses that can benefit from Victor’s niche expertise in construction insurance and contractor-focused solutions
• Growing small businesses: Companies looking to scale with competitive, customizable benefits to support recruitment and retention
• Wellness-focused employers: Organizations prioritizing employee wellbeing with access to health and wellness spending accounts and modern plan designs
• Multi-provincial employers: Companies operating across Canada that require consistent coverage adaptable to varying provincial health systems

Victor Insurance group benefits types and coverage options

Victor Insurance provides a broad range of group benefits to help employers protect their teams’ health, income, and wellbeing. Their plans are designed to be flexible and comprehensive, supporting businesses of all sizes. This includes essential coverage like life and health insurance, as well as enhanced offerings such as:

• Short- and long-term disability
• Critical illness protection
• Dental and vision care
• Health and wellness spending accounts
• Executive benefits
• Employee assistance programs (EAP)

What are the different kinds of flexible spending accounts offered by Victor?

Victor offers two spending account options, Health Care Spending Accounts (HCSA) and Wellness Spending Accounts (WSA).

Health Care Spending Account (HCSA):

• Covers health and dental expenses not covered by the group plan
• Must qualify as medical expense tax credit under Income Tax Act
• Rolling contributions (unused amounts roll over one year)
• Auto-coordination with regular claims available

Wellness Spending Account (WSA):

• Covers personal wellness expenses
• Includes fitness memberships, running shoes, and childcare costs
• Estate planning and legal fees are eligible
• Taxable benefit reported on T4
• No rollover – unused amounts forfeited annually

Executive Benefits Program:

• Combination of HCSA and WSA for executive teams
• Flexible annual allocation
• Promotes a comprehensive wellness approach

Who is eligible for Victor’s group benefits plan?

Victor Insurance offers flexible group benefits that can accommodate businesses of all sizes, starting with just one full-time employee. Their eligibility criteria are designed to ensure accessibility while maintaining plan sustainability. Key requirements include:

Employee eligibility:

• Must reside in Canada
• Provincial health care coverage required
• Actively at work on coverage commencement date
• Employed and paid for services rendered
• Minimum 20 hours per week on permanent, full-time basis
• Excludes temporary employees and non-employee directors

Participation requirements:

• 1-9 employees: 100% participation required
• 10+ employees with employee premium contribution: 75% participation required
• Spousal waiver accommodation: 50% minimum participation after waivers
• Employer must contribute at least 50% of premiums

What is the cost of group insurance from Victor?

Victor’s cost of group benefits is competitive for small businesses and startups, especially for groups with 1–9 employees. Premiums for a comprehensive employee benefits plan starts at $300 per employee.

Here’s a sample quote for a single employee in Ontario:

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 
• 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.

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