Canada Health Insurance

What is Group Health Insurance?

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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