6 Group Health Plan Considerations For Your Canadian Employees
In 2019, the cost for Canadian healthcare was around $9,000. However, if you’re a U.S. employer with Canadian employees, then you might need to choose a group health plan.
This can help reduce that cost for Canadians, but there are a few things to consider when looking at employee health insurance plans.
Keep reading to learn about what to consider when choosing a group benefits plan that will keep all your employees happy.
1. Employee Demographics
First, you’ll need to know what demographics your employees are. Normally, younger people won’t care about benefits as much as older generations. Different demographics want different things from their health care plans.
For example, younger people want more benefits for lifestyles, like gym memberships or wellness reimbursements. Older generations want a better medical or dental plan that will help them save money.
Because of this, you need to take the employee demographics into mind when you’re looking for a new plan. If your company has a mix of different age groups, you should consider getting a mix of different benefits.
But if you employ lots of millennials, you might want to consider getting a cheaper plan that offers a lot of lifestyle benefits. By doing this, you’ll make sure that you choose a plan that every employee will be happy with.
2. Type of Health Plan
One of the benefits of employee health plans is that there are many different ones to choose from. You’ll need to decide if you want a traditional health insurance plan.
If you do, then you might want to get a health maintenance organization (HMO) plan. This plan normally has lower costs, but it will also limit the options employees have for healthcare.
If you get a preferred provider organization (PPO) plan, then you’ll have more options, but that also comes with higher premiums.
If you can’t decide between those two, you can get an exclusive provider organization (EPO) plan. This is like combining an HMO and PPO plan.
Employees can stay in one network, but they also don’t need to get a referral before they can see a specialist.
3. Your Budget
Some of the plans that don’t offer many benefits will only give you around $75 a month for each employee. However, some other plans cost around $500 each month per employee.
This fee may also change depending on where your employees live, like Canada, for example. You’ll need to determine how many employees you have and how much you can afford to pay for each one.
You can talk with a benefits advisor to talk about all of your concerns and find an option that is right for your company. You can also find different ways to save money.
For example, you can amend your co-insurance levels. This is the amount that the insurer pays. For example, if an employee puts in a claim for $100, the insurer will pay $90, and the employee will pay $10. But you can cut that cost to where the burden of the insurance lies on the employee.
You can also add deductibles to your insurance plans. However, this option can be expensive for employees, so it’s normally not recommended.
You could also review the benefits maximum. This refers to the amount you’ll offer for different claims. For example, if you find no one is using their maximum, you could reduce that number to help save you money.
When in doubt, shop around for different insurance rates. This will make sure you’re getting the best bang for your buck. You can even ask an advisor to audit the plan to make sure you’re getting a good deal.
4. Customization
Employers normally have problems choosing a plan because they feel like nothing will cover all the employee’s needs.
Instead, focus on plans that you can customize. You’ll want to find policies that don’t have a 30-day waiting period, policies that can add maternity care, or policies that can cover health conditions or diseases that were pre-existing.
It can be hard to know what your employees are dealing with, so find something that will give you a customization option
5. Network Size
The size of the plan’s network is also important so that your employees can find someone who can care for them.
If you choose a cheap insurance provider but no one in their area is in-network, the insurance won’t help them that much. Some plans will offer a narrow network of providers whom they prefer, but try to find someone who has a lot of doctors and specialists under their umbrella.
Some providers will even be an open-access network. This gives insurance members a chance to choose their own doctor after they choose a primary care doctor.
6. The Team’s Needs
Ask for more information on what your team needs so that you can ensure the plan is qualified.
If your employees tell you that they also want life insurance, long-term disability, or employee/family assistance programs, then you should look for providers that offer those benefits.
However, keep in mind that your employees may not want to tell you directly what they need from their health insurance, since it can be quite personal. Instead, send them an anonymous survey.
Learn More About What to Consider When Choosing a Group Health Plan
These are only a few factors to consider when choosing a group health plan, but there are many other factors to think about.
We know that being an international employer can be stressful and challenging, but we have more tips that can help you run a successful business.
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