What to Expect From a Canadian Employee Benefit Plan

Written by Nationwide Insurance Agents on . Posted in Employee benefits insurance, Group benefits, Group health benefit plan

Small business health coverage

If you are searching for an employee benefit plan in Canada for your small or midsize business’s healthcare needs, you can spend a lot of time looking. Small businesses often provide health plans for their employees, and the best benefit plans will be the easiest and most cost-effective to implement. Here are some criteria that might help you narrow down which employee health benefits and services might be best for your company.

To begin with, why does your small to midsize business need an effective health plan for your employees? It all begins with a piece of Canadian legislation from 1984 called the Canadian Health Act. The CHA specifies the conditions by which health insurance programs in all provinces and territories must abide in order to receive federal transfer payments. The CHA defines insured services as those with care rendered by hospitals or physicians. For the elderly and those living in poverty in Canada, public funds will cover their pharmaceutical medication needs, but many Canadians who are employed rely on their employers’ health plans for all or some of their healthcare.

Small businesses comprise much of the Canadian economy. As many as 98% of Canadian companies are those with between two and 100 employees. In addition to that, 72% of those small businesses have owners who are concerned over the cost of health care plans per employee. A good small business healthcare plan will be separate from other plans such as life insurance or premiums for disability programs. Employers should also be able to decide on how much high-deductible insurance they would like to cover. A good plan will keep administrative costs low and give employees their own tax-free health benefit accounts. Finally, it should also keep premiums stable and have better benefits overall. This sort of employee benefit plan is the best for small businesses in Canada.

Employee benefit plans can be complicated, but they shouldn’t be. Getting the best plan for your small or midsize business will guarantee great health and happy employees.

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