Employee Benefits
Group health benefits are offered by an employer or organization to its employees or members. Unlike individual plans, group benefits often have lower premiums because the risk is spread across a large group of people. In Canada, these plans supplement provincial health care by covering a wide range of services and costs.
How group health benefits work
The employer chooses and purchases a group insurance plan from a provider.
A minimum number of employees, sometimes at least 70%, must participate in the plan for it to be valid.
Employees may be able to add their dependents, such as a spouse and children, for an extra cost.
The cost of premiums is typically shared between the employer and the employee. Employees' contributions are often deducted directly from their paychecks.
Unlike individual health plans, group plans generally do not require employees to undergo a medical exam to qualify for basic coverage.
The employer chooses and purchases a group insurance plan from a provider.
A minimum number of employees, sometimes at least 70%, must participate in the plan for it to be valid.
Employees may be able to add their dependents, such as a spouse and children, for an extra cost.
The cost of premiums is typically shared between the employer and the employee. Employees' contributions are often deducted directly from their paychecks.
Unlike individual health plans, group plans generally do not require employees to undergo a medical exam to qualify for basic coverage.
Common Types of Group Health Benefits
Extended Health Care:
Coverage for medical expenses beyond what provincial plans cover. This can include prescription drugs, hospital room upgrades, ambulance services, and medical equipment.
Dental Care:
Helps cover the cost of preventative and restorative dental services, including routine exams, cleanings, and more advanced procedures like root canals or orthodontics.
Vision Care:
Provides coverage for eye exams, prescription glasses, and contact lenses.
Disability Insurance:
Offers income replacement if an employee is unable to work due to injury or illness. Plans can cover both short-term and long-term disability.
Life and Critical Illness Insurance:
Life insurance provides a payout to an employee's beneficiaries in the event of their death. Critical illness insurance provides a tax-free, lump-sum payment upon the diagnosis of a covered illness, such as a heart attack or cancer.
Employee Assistance Programs (EAPs):
Provide confidential counseling and support services for a variety of personal and professional issues, including mental health, financial guidance, and work-life balance.
Health Spending Accounts (HSAs):
Provide employees with a pre-determined amount of money to spend on eligible medical and dental expenses not covered by their main plan.
Wellness Programs:
Some modern plans include benefits like gym memberships, fitness trackers, and wellness education to encourage a healthy lifestyle.