Frequently asked questions

How can small businesses provide employee benefits while managing costs?

Small businesses can manage employee benefits costs by choosing cost-effective health plans, offering a mix of fully insured and self-funded options, and sharing premium costs with employees.

They can also explore wellness programs, which can help reduce long-term health care expenses, and look for group benefit plans that provide comprehensive coverage at competitive rates.

Why should small businesses offer benefits if they only have a few employees?

Even with a small team, offering benefits helps them attract and retain talent, stay competitive, and improve employee satisfaction. Group benefits show employees that you value their well-being, which can boost morale, productivity, and loyalty.

Who is eligible for employee benefits in Canada?

Eligibility for employee benefits typically requires employees to be Canadian residents or temporarily working abroad, provided their Government Pension Plan and Health Insurance remain active. Employers may also set specific criteria, such as length of service or job classification, to determine benefit eligibility within their organizations.

What benefits do employees value most in Canada?

In Canada, employees highly value health and dental coverage, retirement plans, and work-life balance. Additionally, paid time off for new parents is a significant benefit. These offerings enhance overall job satisfaction and contribute to a positive workplace culture, making them essential for attracting and retaining talent.

What are the mandatory benefits for employees in Canada?

In Canada, mandatory benefits for employees include the Canadian Pension Plan (CPP), Employment Insurance (EI), and workers’ compensation. These benefits ensure financial security for workers during retirement, provide support during periods of unemployment, and offer protection in case of workplace injuries, forming a critical safety net for all employees.

Can an employer force you to take benefits in Canada?

In Canada, employers cannot compel employees to accept benefits. However, they can require certain benefits as part of the employment package, particularly if outlined in the employment contract or collective agreements. This ensures clarity and consistency in the benefits offered while allowing employees to make informed choices.

Imagine stepping into a workplace that isn’t just about the job—it’s about looking out for you, too. That’s where group health insurance comes in. Think of an employee benefits plan as a safety net that protects you, and shows you that you are valued. 

Group health insurance is offered by employers to their employees and includes medical services like prescription drugs, preventive care, dental, and vision benefits. Some employers also choose to offer mental health, maternity care, and additional wellness benefits through a group health plan.

If you’re wondering why group health insurance is a good idea, this article explains its benefits and why offering group health is important.

What is group health insurance?

Group coverage health insurance is a type of insurance plan that provides coverage to a group of people, typically employees of a company or members of an organization. It offers benefits such as medical, dental, vision, and prescription drug coverage.

How does group health insurance benefit employers?

Employers are always looking for ways to boost productivity, retain top talent, and ensure their employees are well taken care of. Offering group health insurance helps achieve these goals.

By offering comprehensive health coverage, you’re showing your team that you value their health and well-being, which can go a long way in building loyalty and job satisfaction. So, when it comes to employee benefits, group health insurance policy is a win-win.

Here’s why group health insurance is important for you as an employer:

1. Enhances employee recruitment and retention

Group health insurance is a powerful recruitment and retention tool for businesses like yours. If you’re on the hunt for talented employees, the presence of comprehensive health benefits can significantly influence a job-seeker’s decision-making process.

Similarly, an existing employee is more likely to remain loyal if you prioritize their health and well-being.

2. Helps boost productivity

Offering a group health plan to your employees will reduce their worries about the financial burden, and they can focus more on their work. Employees with access to healthcare will take fewer sick days and perform better on the job.

Why? Well, when they know their group health plan covers preventive measures, like regular check-ups and screenings, they’re more likely to stay on top of their health. And when people feel good, they’re more productive.

3. Increases employee loyalty

Offering a group health plan increases your company’s appeal and makes employees more loyal towards your brand. This makes your employees feel valued and protected because they know their health is safeguarded.

4. Employer advantages

Group health insurance is not beneficial just for the employees. Offering group health insurance has a wide range of benefits for employers or companies as well. Here are some of them:

• Tax advantages: Employers can typically deduct the cost of premiums they pay for employees as a business expense, potentially lowering their taxable income. Additionally, employees’ premium contributions can be made pre-tax, reducing the employer’s overall payroll tax burden
• Compliance with legal requirements: Offering health insurance can help larger employers comply with mandates, avoid penalties, and foster a positive reputation as a compliant and caring employer
• Risk pooling: Group health insurance spreads risk among all participants, often leading to lower premiums and better coverage options compared to individual plans
• Reduction in recruitment costs: Employers can reduce the costs associated with recruiting new employees by offering attractive health benefits, which can be a strong incentive for prospective hires
• Improved health outcomes: Access to preventive care and wellness programs can lead to better overall health for employees, potentially reducing long-term healthcare costs and minimizing the impact of serious health issues on the workforce

How does group health insurance benefit employees?

Group medical insurance in Canada can really benefit employees by providing them with affordable healthcare, along with comprehensive coverage. Employees also pay lower premiums for group health insurance and can enjoy certain tax exemptions. 

1. Ensures affordable healthcare

Group health insurance gives you access to affordable medical services. By joining forces with your employers, you can benefit from negotiated group rates, reducing premiums and out-of-pocket costs. This means healthcare doesn’t strain your budget and is always within your reach.

2. Offers comprehensive coverage

Group insurance covers a range of services, from prescriptions to dental and vision care. It ensures employees have access to essential healthcare beyond basic medical needs. 

3. Employees pay lower premiums compared to individual plans

Since the cost is shared between multiple employees, group plans often have far lower premiums than an individual policy. This makes the group plan more affordable and accessible to everyone.

4. Ensures financial stability

Group health insurance covers a significant portion of your medical expenses, like hospital stays and treatments, easing the financial burden during tough times. With this security, you can focus on recovery without worrying about the bills.

5. Ensures equal access

Group health insurance ensures everyone has the same access to healthcare, regardless of health status or pre-existing conditions. While individual plans might differ, group benefits cover all eligible employees equally. 

6. Helps address severe ailments

Critical illness policies under a group health plan cover specific critical illnesses that employees may face. These policies offer extensive coverage for severe illnesses like cancer, heart disease, or organ transplants, among others.

This relieves you from the financial burden that critical illnesses impose. So, when it comes to hospitalization costs and specialized treatments, a group health plan has everything covered!

7. Group benefits offer certain tax exemptions

In Canada, some group benefits are tax-exempt. You can claim exemptions on health benefits, covering medications, dental, vision, and paramedical services, as well as on short and long-term disability insurance premiums paid by employers. 

Contributions to group registered pension plans (GRPPs) and deferred profit-sharing plans (DPSPs) are also tax-exempt.

8. Support for families

Group health insurance provides significant support for families of employees, offering various benefits that contribute to the well-being and financial stability of employees and their dependents. Here are some key aspects:

• Comprehensive coverage for dependents: Group health insurance often extends coverage to employees’ spouses and children
• Lower premiums and out-of-pocket costs: Group plans typically have lower premiums and out-of-pocket costs compared to individual plans, making healthcare more affordable for families
• Preventive care: Many group health plans emphasize preventive care, covering routine check-ups, vaccinations, and screenings
• Maternity and pediatric care: Group plans generally cover maternity care, including prenatal and postnatal services, as well as pediatric care
• Chronic disease management: Families dealing with chronic conditions such as diabetes, asthma, or heart disease can benefit from disease management programs included in group health plans

Frequently Asked Questions

Can group health insurance plans in Canada be customized to meet different employee needs?

Yes, many Canadian group health insurance providers offer customizable plans for diverse employee needs. Employers can choose coverage levels for prescription drugs, dental care, vision care, and paramedical services like physiotherapy and massage therapy. 

Some plans include optional add-ons, such as critical illness or disability insurance. Having a flexible health spending account (HSAs) also allow employees to allocate funds toward specific medical expenses.

Will I be taxed on a group health policy?

In Canada, group health insurance benefits provided by employers are generally not considered taxable income for employees. However, certain exceptions may apply, so it’s essential to consult with a tax professional for specific guidance.

What factors can affect the cost of a group health policy?

The greater the number of features included in the insurance plans, the higher the premium you’ll need to pay. If the group healthcare plan is tailored and includes additional benefits like daycare treatment and outpatient expenses, the premium will increase accordingly.

How does GreenShield assist in processing claims?

GreenShield offers a streamlined process for submitting claims, making it easier for members to access their benefits. The key methods range from online claims submission, direct billing and manual claim submission. Below are the methods through which GreenShield assists in processing claims:

• You can submit claims via the GSC Everywhere portal or mobile app, allowing for faster processing and often same-day adjudication for eligible claims
• Many healthcare providers can submit claims directly to GSC at the time of service, eliminating the need for upfront payments
• For manual submissions, members can mail original receipts and a completed claim form to GSC. Claim forms are available online or through customer service

Claims are processed within two weeks, with direct deposit options available for faster payment (often within 24 hours of approval).

Who is eligible for GreenShield Honeybee Select’s employee benefits for small businesses?

Companies with 25 or fewer employees, self-employed individuals, freelancers, and seasonal workers are eligible for GreenShield’s Employee benefits for small businesses. Employees must be Canadian residents with valid provincial health insurance to qualify for the benefits.

Does GreenShield cover private hospital rooms in Ontario?

Yes, GreenShield offers coverage for private hospital rooms in Ontario. Their plans include optional benefits that pay for the difference between standard ward charges and semi-private or private accommodations, allowing for up to 30 days of coverage per year.

What we like about GreenShield’s employee benefits for small businesses plan?

GreenShield’s Employee Benefits for small businesses plan includes its full customization options, digital administration and scalable pricing. Here are some offerings that we like: 

• Full customization: Employee benefits shouldn’t be the same for everyone. Create a plan that fits both your company and your employees’ unique needs
• All-in-one digital administration: GreenShield easy-to-use platform gives you a complete overview of all your employee benefits. You can quickly add or remove employees and manage everything in one place
• Consistent pricing: As your company grows, your benefits plan should too. Green Shield offers consistent pricing and flexibility. scalable approach to meet your changing needs
• Administration services only (ASO): Businesses only pay for what employees actually use, enhancing cost-effectiveness. It features risk mitigation with stop-loss pricing starting as low as $1,000 and a fair, transparent renewal process

How to get the best employee benefits rates from GreenShield?

To secure the best employee benefits rates from GreenShield, it is advisable to speak to our experienced insurance experts, who can provide insights into various plans and options available for your business. They will also help you submit your health insurance application whenever you’re ready to go ahead with the plan.

Does GreenShield offer benefits plans for retired employees or losing their jobs?

Yes, GreenShield offers benefits plans for retired employees or losing their jobs. They provide a range of conversion products designed to ensure continued coverage, including options that cater specifically to individuals transitioning from group benefits. This includes health and dental plans that cover pre-existing conditions, ensuring peace of mind during these transitions.

Are there any underwriting requirements?

Yes, for underwriting requirements employers are required to provide information about their workforce, including the number of employees and any relevant health history. This data helps assess risk and identify suitable coverage options. The process ensures that the benefits package is tailored to meet the needs of both the business and its employees.

What are add-on allowance accounts?

Add-on allowance accounts provide extra coverage options that employers can choose through the Honeybee Select platform. These accounts enable businesses to offer flexible spending accounts for various employee needs, including healthcare spending accounts (HCSAs) and lifestyle benefits. This level of customization allows companies to tailor their benefits packages to better address the specific demands of their workforce.

Can small businesses customize their benefits package?

Yes, small businesses can customize their benefits packages using the Honeybee Select platform. This platform enables employers to select standardized plans and add-on options, to create a benefits structure that aligns with their budget and meets employee needs. This flexibility is especially advantageous for companies with fewer than 25 employees.

How does Honeybee Select support employee mental health?

Honeybee Select supports employee mental health by incorporating mental health coverage into its standard offerings. This coverage is facilitated through partnerships with organizations like Inkblot Therapy, providing access to licensed mental health professionals.

Are there any additional costs associated with the add-on allowance accounts in Honeybee Select?

Yes, there are additional costs associated with add-on allowance accounts in GreenShield’s Honeybee Select. The base plan comes with a monthly fee of $10 per employee, while employers must fund these accounts according to their chosen amounts. As a result, total costs will vary based on the contributions made to the accounts.