This page provides information to Canadians about group health insurance
including coverage and benefits. |
Group health insurance is a company insurance plan devised to share the
financial cost of healthcare among a group of employees, who contribute
to a fund. Hence, when a participating employee falls ill or needs healthcare
services, they are remunerated by the insurance company under the terms
of the contract. A group plan can take many forms; its coverage usually
depends on the number of persons participating, the goal of the group’s
sponsor, and the company’s budget. Typically, only the employer
has a business relationship with the insurance company - the insured individuals
do not.
 Group
Health Insurance Coverage
Many group health insurance plans cover dental, vision and prescription
drugs, and may also include life insurance, group disability, accidental
death and dismemberment, short-term disability, critical illness, and
Best Doctors (Medical Referral service) services. Some group plans will
extend benefits to a participant’s family members.
Many people will opt for a job with a company that offers health insurance
coverage over one that does not. Group plans provide various advantages
for employers as well as employees.
Benefits of a Group Health Insurance Plan for Employers
- A group health insurance plan offered to employees gives the company
an edge. Not only is it an attractive feature in a job offer, but it
can also be a factor in retaining employees.
- Group plans allow access to health insurance at a reduced cost.
- They are less selective and less discriminatory than individual insurance
plans, ensuring that all employees are treated under equal terms.
- Most premiums paid by an employer are tax-deductible as a business
expense.
- Group health insurance gives workers a sense of security and may help
to boost productivity and morale.
Benefits of a Group Health Insurance Plan for Employees
Although individual health plans may provide more flexibility, the rates
cannot be negotiated and there exist exclusions for pre-existing medical
conditions. On the other hand, a group health insurance plan offers many
advantages to an employee:
- The premiums are typically more affordable than individual health
insurance
- There are no exclusions for pre-existing medical conditions
- One family rate is charged - you do not have to pay a premium for
each dependent
- Higher limits are permitted for drug and dental claims
- The group renewal rate is negotiable.
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