Winnipeg Insurance Brokers Ltd. Unit 106-2565 Portage Avenue, Winnipeg, MB R3J 0P4
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If you’re a Manitoba small business owner, you may have, or currently be, considering adding a group health insurance program for your employees.
Group health insurance plans benefit everyone. Not only does it help take care of your team, but it also makes your business more appealing to current and future employees. Bonus! Group insurance is often more affordable than individual insurance plans. Making it even more appealing to everyone involved.
In this post, we explore what a group health plan is, what it typically costs, and look at important considerations and some typical questions we get asked.
Have a list of questions you’re dying to ask? Contact us today! We’ll help you run through your list so that you can feel confident before you take this next big step for your business.
Group Health Insurance is a type of insurance designed for businesses that lets employers offer health insurance benefits to their employees, as part of a group package. It benefits employees by helping them pay for healthcare costs that are not covered by the government. It benefits employers by spreading both the risks and the costs associated with traditional health insurance across all employees.
In Manitoba, when group health insurance is purchased, the employer pays a portion of the premiums for that policy, and the employees pay for the rest. From there, any claims made through the policy are pooled together to manage risk and assist in keeping premiums affordable.
Group health insurance is a type of private health insurance, so it covers things that your government-funded health insurance often doesn’t. Depending on what’s included in the group plan (as determined by the employer), group health insurance can cover costs associated to expenses, such as:
If you’re thinking about purchasing group health insurance for your small business, you’ll want to consider three things: the number of employees you have, the type of employees you have, and how long employees need to be with your company before they can access their benefits.
The number of employees you need to have in order to qualify for group benefits varies, but companies with as few as two employees can qualify! It all depends on the guidelines set by the insurance company you partner with.
Get in touch with our individual Insurance Advisors to confirm your unique requirements.
Typically, group health insurance plans are offered to full-time employees only. The definition of “full time” varies by insurance company, but the industry standard is 24 hours of work per week.
Group health insurance is usually only offered to those employees who have employment agreements with your company on a regular basis, so contractors, consultants, seasonal, and casual employees don’t typically fall under these group plans.
Most employers only offer access to benefits following a probationary period of around 3-6 months, but sometimes new employees will qualify right away. It all depends on what is written into their employment agreement.
You got burning questions– we’ve got answers! Have a question we don’t answer below? Reach out. We’d be happy to help walk you through any additional information you want to know.
Like other types of business insurance, the cost of your group health insurance premium depends on the types of benefits you want included. Costs can be affected by things like:
Typically, plans cost roughly 3% of payroll expenses, with employers paying a minimum of 50% of the total premiums.
Yes, group insurance is often more affordable than individual insurance plans.
Group plans are more affordable for employers because they spread the risk across your entire organization — and even across your industry — which reduces costs for all businesses involved.
And, they’re more affordable to employees, too! As long as the employer contributes to the overall cost of the premiums, individual costs are much lower than they would be if each employee purchased an individual health insurance plan.
Yes, some aspects of a group health and dental insurance plan are tax deductible for both employers and employees. However, certain factors can affect your ability to claim the premiums. We recommend double-checking with your accountant before banking on that!
As mentioned above, the number of employees needed to be eligible for a group health plan will change depending on the insurance company you decide to use.
You can usually find a company offering a group policy for as little as two people!
Typically not under the same plan.
There are a lot of risk factors based on industry/job type, which is why insurers don’t like to group businesses together that will have a different level of risk.
However, some industries have association plans that offer a grouped arrangement. In these scenarios, you’d have an individual employee benefits plan under the association plan. So you’d still be responsible for your own policy but would get some of the benefits (like cost savings) of having a grouped plan.
The best way to find a group health policy for your small business is to work with an insurance advisor (like us!). They'll be able to answer all your questions, determine which policy works best for your unique situation, and lock in a great rate!
A group insurance plan can be a great way to lower premiums for everyone. Plus, it can help you attract and retain your employees!
If you’re interested in purchasing a group health insurance plan for your Manitoba small business, get in touch. Together, we’ll determine your needs, set your budget, and find the best plan for you.
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We are committed to the communities where we live and work, and we demonstrate our commitment by taking part in sponsorship and volunteer programs.
We love it here, too.
We are committed to the communities where we live and work, and we demonstrate our commitment by taking part in sponsorship and volunteer programs.
Winnipeg Insurance Brokers Ltd. Unit 106-2565 Portage Avenue, Winnipeg, MB R3J 0P4
Winnipeg Insurance Brokers Ltd. serves our clients and operates on Treaty One land; homeland of the Anishinaabe, Cree, Oji-Cree, Ojibway, Dakota, and Dene Peoples, and the homeland of the Red River Metis. Our drinking water comes from Shoal Lake 40 First Nation, in Treaty Three territory. We respect the treaties, the land, and the water that sustain us.