Entrepreneurship & Small Business

Health and Dental Insurance for small business owner

  • Last Updated:
  • Nov 13th, 2017 6:53 pm
[OP]
Jr. Member
Nov 20, 2004
106 posts
5 upvotes
Markham

Health and Dental Insurance for small business owner

Hi

Anybody has any suggestion for companies for health and dental insurance coverage for small business (25 employees). I currently already setup with Brock Health and am happy with it. However, i would like to investigate 'real' health and dental coverage like those from manulife, bluecross etc... i want to start off coverage with myself ( owner and dependents) to see what the montly premium will be and may have the potential to extend to my staff.

Thanks in advance.
6 replies
Sr. Member
User avatar
Jan 8, 2009
805 posts
65 upvotes
GTA
bazan wrote:
Nov 6th, 2017 8:59 am
Hi

Anybody has any suggestion for companies for health and dental insurance coverage for small business (25 employees). I currently already setup with Brock Health and am happy with it. However, i would like to investigate 'real' health and dental coverage like those from manulife, bluecross etc... i want to start off coverage with myself ( owner and dependents) to see what the montly premium will be and may have the potential to extend to my staff.

Thanks in advance.
Premium would depend on a few factors such as limit, co-insurance, types of coverage and your employee data (# of single, couple, family, etc). We have access to multiple companies so can get you a comparison from them.
Good luck!
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!
[OP]
Jr. Member
Nov 20, 2004
106 posts
5 upvotes
Markham
Insurance-Broker wrote:
Nov 6th, 2017 7:03 pm
Premium would depend on a few factors such as limit, co-insurance, types of coverage and your employee data (# of single, couple, family, etc). We have access to multiple companies so can get you a comparison from them.
Good luck!
Pls send me PM with details. Txs
Deal Addict
User avatar
Mar 23, 2008
3786 posts
305 upvotes
Toronto
I'm compatible to you. Same amount of employees. I use Northern Financial Group.
[OP]
Jr. Member
Nov 20, 2004
106 posts
5 upvotes
Markham
NEMESIS_2008 wrote:
Nov 6th, 2017 11:42 pm
I'm compatible to you. Same amount of employees. I use Northern Financial Group.
Thanks.. I will take a look. How long have you been using them?
Deal Addict
User avatar
Sep 15, 2009
2700 posts
1002 upvotes
Toronto
bazan wrote:
Nov 6th, 2017 8:59 am
Hi

Anybody has any suggestion for companies for health and dental insurance coverage for small business (25 employees). I currently already setup with Brock Health and am happy with it. However, i would like to investigate 'real' health and dental coverage like those from manulife, bluecross etc... i want to start off coverage with myself ( owner and dependents) to see what the montly premium will be and may have the potential to extend to my staff.

Thanks in advance.
Bazan,

Private Health Service Plans (PHSP) – which you have with Brock are a good alternative to traditional group benefits, but the larger a business gets and subsequently the larger the number of employees (and family members), the more the business is at risk of larger claims (statistically). The downfall of a PHSP is the “cap” that the business sets for said employees or members of the plan. For a company your size (25), I imagine you have a cap between $2k-$5k per member. What is your cap? This is the maximum any member and their family can submit claims for on an annual basis. The problem with this is catastrophic events/illnesses/diseases, etc. that could lead to potentially devastating costs to the member (as there is a cap and they must pay the rest out of pocket) and to the business as this may be an ongoing/permanent cost. The majority of the risk is essentially on the business owner (and then to the employee). Unlike PHSP’s with caps (determined by the business owner), most traditional group plans, while there is a cap, depending on what it is, it’s generally much greater, but cost and risk is pooled among members. Further, with a group the size of yours, one or a couple individuals making large claims or maxing out their cap, can cost the business dearly which may put in jeopardy the future viability of the plan for all members. Yes the plan funding is fully deductible to the business, but so are traditional group benefits as they pertain to the health and dental portion.

It’s very difficult to compare apples to apples between a PHSP and a traditional plan because unlike a PHSP, most traditional group plans also cover long and/or short term disability (typically paid by the employee for tax purposes), life insurance, critical illness coverage, and EAP’s – Employee assistant programs, etc., which are very important aspects of a well-rounded plan.

Comparing on cost alone is not always easy, but one must look at the particulars (demographics of the group) to arrive at best possible solution.

My team and I work extensively in the group market, predominately with the small (3 - 50 employees) and mid-size market (50 - 150) so have experience looking at it objectively from both sides. In many cases a PHSP is a good idea, but the other areas (LTD, Life insurance) should be made available for the employees to not only protect the employees, but the business itself by ensuring key employees are not only attracted, but retained. Do you have a separate plan for Long Term Disability for the employees? Are they covered sufficiently for life insurance? What type of business do you run? What industry?

Manulife, Sun Life and Great-West Life are your typical go to carriers for group coverage via a traditional plan. Feel free to send me a PM if you have any particular questions that cannot be addressed in this thread.
Sr. Member
Aug 5, 2008
657 posts
167 upvotes
bazan wrote:
Nov 6th, 2017 8:59 am
Hi

Anybody has any suggestion for companies for health and dental insurance coverage for small business (25 employees). I currently already setup with Brock Health and am happy with it. However, i would like to investigate 'real' health and dental coverage like those from manulife, bluecross etc... i want to start off coverage with myself ( owner and dependents) to see what the montly premium will be and may have the potential to extend to my staff.

Thanks in advance.
The insurance for just you and dependents won't be representative of policy for 25 people. They spread risk over the employee group and if you don't have a 'group', there is nowhere to spread risk. So ask for a quote. My company uses SunLife... but six of one, half dozen of another. Get a broker to shop around for you.

The big thing is that dental, optical, travel are not really 'insurance'. You will essentially pay for whatever you use, plus a 20% overhead. The insurance is really important for stuff that is uncommon (thank god) but expensive. Cancer meds for example.

Why don't you expand your Brock coverage (we use them as well to supplement SunLife) to cover all of your dental, optical, even basic drug and only insure the really deadly stuff with an insurance company?

just a thought.
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