Benefits of Group Insurance Plans to Employers
Canadian companies are not required to offer group insurance, regardless of the number of employees they have at their company. However, as an operating business of a certain size, there are other benefits to employers in opting for this type of business health insurance, regardless of how many employees they currently have.
Let’s look at some of these benefits to employers now.
Jobs Are More Attractive When Including Insurance
Being able to get private insurance coverage for health benefits including dental with a respected insurer is an important part of any employee package deal.
Offering not only a competitive salary but also other upsides to working for their company as opposed to a peer is likely to see more positions accepted. When you are struggling to fill important job postings with qualified staff, especially in more remote locations, everything helps.
Lower Prices as a Group Policy
Individual health insurance policies for individuals or for a key executive through a business policy tend to be more expensive. Why is this? Because the risk isn’t spread through a group policy where multiple, maybe even tens or hundreds of people, are covered.
However, an employer taking up a group insurance policy pools many employees in the same plan. An insurer can coordinate what to offer that group specifically or in general with their group insurance. It’s far more of a known quantity for them, which allows the insurer to better judge risk and price more competitively.
Some Pre-existing Conditions May Be Covered
It depends on the policy and insurer, but in some cases, a pre-existing condition may be covered. For employees that have asthma or chronic diseases that they live and work with, this is a relief.
Also, given that this isn’t all that common, companies with a group plan that includes health insurance coverage for pre-existing conditions (to whatever extent this is true) will attract employees who unfortunately have health conditions and find getting health insurance very difficult as an individual.
Providing Health Insurance Shows Employees that the Company Cares
Many companies say that they care about their staff. They may even have a Mission Statement pinned up on the wall that once written, never gets referred to again.
A group insurance policy shows that the business cares. And not just about the top executives either. It’s an investment in the company’s personnel to help them stay in good health. Employees who feel appreciated as valued members of the team stay longer and work harder than those who feel lost and underappreciated. It just makes good business sense.
Qualifies as Before Tax Business Expense
For Canadian companies, money spent on a group policy qualifies as a before-tax business expense that lowers their liability for taxes. That’s good news for companies wanting to provide for their extended team.
Offering a group policy to provide for employees’ health and dental coverage is an extra step that’s certainly appreciated by staff. It’s also a win-win for the business with higher staff retention rates and tax deductions too.