Entrepreneurship & Small Business

Employee group benefit insurance

  • Last Updated:
  • Jun 1st, 2018 3:50 pm
[OP]
Sr. Member
Feb 16, 2010
602 posts
155 upvotes
Toronto

Employee group benefit insurance

I have approximately 10 employees and I’m looking to get them all covered for dental, drugs, and life/illness. Massages and other benefits aren’t super important, but would be a nice to have.

I spoke with some brokers and they all offer an insane range of prices with different packages that seem confusing and overwhelming.

I’m looking for an affordable option that covers my employees well.

What kind of benfits do you offer your employees, and how much do you pay per employee?
13 replies
Deal Addict
Aug 28, 2007
1842 posts
240 upvotes
Calgary
Consider using a PHSP (Private Health Services Plan) They are also known as an HSA (Health Spending Account). Search on this forum for Brock Health (www.brockhealth.ca)

You set the dollar amount which each employee can claim per year. The employees submit to the provider and are reimbursed 100%(up to their limit for the year). Then you get an invoice at the end of the month for the cost of their claims plus a 5% processing fee. That way you don't have to pay anything if your employee doesn't make any claims during the year. You know all the money you send to the provider goes to your employees not to an insurance company.
[OP]
Sr. Member
Feb 16, 2010
602 posts
155 upvotes
Toronto
Just Confused wrote:
Nov 28th, 2017 2:32 pm
Consider using a PHSP (Private Health Services Plan) They are also known as an HSA (Health Spending Account). Search on this forum for Brock Health (www.brockhealth.ca)

You set the dollar amount which each employee can claim per year. The employees submit to the provider and are reimbursed 100%(up to their limit for the year). Then you get an invoice at the end of the month for the cost of their claims plus a 5% processing fee. That way you don't have to pay anything if your employee doesn't make any claims during the year. You know all the money you send to the provider goes to your employees not to an insurance company.
I'm actually currently a customer of Brock Health, but I'm looking more for the traditional kind of benefits for my employees.
Sr. Member
User avatar
Jan 8, 2009
808 posts
66 upvotes
GTA
steeped wrote:
Nov 28th, 2017 7:46 am
I have approximately 10 employees and I’m looking to get them all covered for dental, drugs, and life/illness. Massages and other benefits aren’t super important, but would be a nice to have.

I spoke with some brokers and they all offer an insane range of prices with different packages that seem confusing and overwhelming.

I’m looking for an affordable option that covers my employees well.

What kind of benfits do you offer your employees, and how much do you pay per employee?
It will all depend of the type of coverage that you require, limits, etc. Prepare an employee data and we will draft a plan based on your budget and needs.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Deal Addict
Jul 3, 2017
2363 posts
1568 upvotes
There are two parameters to keep in mind that might help clarify things:

1. No employee benefits plan makes sense financially for the company or for the employees. Any insurance company is going to analyze your demographics and then charge you double what they expect to pay out. If they fall short of that in any year, they will raise your rates the following year. They are likely much better than you at doing that calculation, so you might as well accept their numbers for the purpose of doing trade-offs.

2. Therefore the main purpose of the benefits plan is to make the employees happy. So that, along with cost, should be your standard. You don't need to be concerned about what's in the plan, only which plan is most cost-effective in having the highest employee preference vs. cost.

One other thing to be aware of: I don't personally like this practice, but some insurers will offer you a bribe as the company owner/executive in charge of the benefits plan, in the form of secret improved benefits for you alone. No need to mention it to the rest of the employees.
Deal Addict
User avatar
Mar 23, 2008
3836 posts
324 upvotes
Toronto
I went with Northern Financial, which is thr broker who signed my company up with Empire Life.
[OP]
Sr. Member
Feb 16, 2010
602 posts
155 upvotes
Toronto
NEMESIS_2008 wrote:
Dec 2nd, 2017 5:34 pm
I went with Northern Financial, which is thr broker who signed my company up with Empire Life.
I am also on the Olympic Benefit Plan with Northern Financial & Empire Life... but watch out! It's almost a scam.

The prices are so cheap, and it actually is too good to be true.

They have so many extra hidden fees and policies that they don't tell you about until you go on the plan. They will modify your contract midway through, and quadruple the price after 1 year.

The reason I made the post here is because I'm looking to get off this scam ASAP.
Deal Addict
User avatar
Mar 23, 2008
3836 posts
324 upvotes
Toronto
steeped wrote:
Dec 4th, 2017 2:33 pm
I am also on the Olympic Benefit Plan with Northern Financial & Empire Life... but watch out! It's almost a scam.

The prices are so cheap, and it actually is too good to be true.

They have so many extra hidden fees and policies that they don't tell you about until you go on the plan. They will modify your contract midway through, and quadruple the price after 1 year.

The reason I made the post here is because I'm looking to get off this scam ASAP.

Hmmmm, I have a different experience. They have yet to jack up my rates and I am with them for almost a year.
Deal Guru
Aug 2, 2010
12480 posts
3035 upvotes
Here 'n There
NEMESIS_2008 wrote:
Dec 5th, 2017 10:01 pm
Hmmmm, I have a different experience. They have yet to jack up my rates and I am with them for almost a year.
It's always that way in the honeymoon period.
[OP]
Sr. Member
Feb 16, 2010
602 posts
155 upvotes
Toronto
NEMESIS_2008 wrote:
Dec 5th, 2017 10:01 pm
Hmmmm, I have a different experience. They have yet to jack up my rates and I am with them for almost a year.
I'm glad to hear that you've been happy with them so far, but be very careful. Make sure you check your bills every month, and once you're up for renewal, run far away!
Member
User avatar
Feb 9, 2009
470 posts
64 upvotes
Vancouver
steeped wrote:
Nov 28th, 2017 3:52 pm
I'm actually currently a customer of Brock Health, but I'm looking more for the traditional kind of benefits for my employees.
Could you share why you want to move away from a PHSP and into a more traditional kind of benefits?
Newbie
Jul 16, 2011
5 posts
1 upvote
ORLEANS
Real extended health insurance or assurance or whatever they call it these days is automated.
It has 30-40% of profit baked into it for the insurance company so will always be more expensive than a cheap 5% PHSP but a good plan is automated and supports direct billing.
In theory you can get automation with a PHSP but it is usually much more expensive ex. 15% instead of 5% and you may not find one.
Life is too short for a lot of manual paperwork. You need to consider how much paperwork pain you want to inflict on your employees.
With 100% coverage comes a lot of satisfaction for end users. You can go to the pharmacy, show then a card once and just pickup your prescription and leave.
You still have the limits and rejected claims games insurance companies play but with a good company those can be bearable.
Deal Addict
Aug 28, 2007
1842 posts
240 upvotes
Calgary
30-40% seems like a big percentage of profit which I'm expected to donate to the insurance companies just to get drug cards. The PHSP providers have online submission of the receipts of that drug receipt. The employee gets reimbursed and we get a statement and invoice at the end of the month with the 5% admin fee. Pretty painless for me.
Newbie
May 31, 2018
2 posts
One of the challenges with small business benefits is what happens after your first year. Most providers will jack your rates exponentially if you go over 60% use of your available benefits. Which is really challenging not to do when you are a small team.

I use a Chamber plan for my small business needs. It gets you the same services (medical,dental,life insurance,critical illness - direct pay drug cards) without the insane costs... after our first year our rates only went up 1.2%.

They're available through your local chamber of commerce in most areas.

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