Group Health Insurance is the most crucial part of a benefits package for obtaining and retaining the kind of employees you are relying on to help grow your business. It is no secret that in our current environment, it has become a challenge for small employers in Ontario to maintain affordable health coverage for their employees due to ever increasing costs.
Eligibility Requirements: The Nuts and Bolts!
In order to be considered for group health coverage, a carrier will require that there be a minimum of two employees. The eligible employee is one who works on a full time basis with a normal work week of 22 or more hours for compensation.
The following items are also necessary for compliance:
- The employer is expected to pay at least 25 % of the premium
- The employer has the right to decide on a waiting period for new employees to enroll in the plan - 0 to 9 months in Ontario
Type of Group Plans Available
- Insured Plans: This is where the insurance company assumes all the risk. Renewal rates are established based on the utilization of the employees. Some benefits are pooled with all companies, such as Out of Canada Coverage.
- HCSA: A Health Care Spending Account is a tax effective way of paying an employee's medical expenses Erb and Erb Insurance Brokers. has the necessary knowledge and expertise to assist both employers and employees who are considering Health Care Spending Accounts.
Additional considerations for the employer:
An employer must offer coverage to all eligible employees. Employees may waive coverage if they have other coverage available elsewhere.
Today, more than ever before, employers need to understand the requirements in offering a group plan. Health insurance is becoming more complicated every day. At Erb and Erb Insurance Brokers., we are committed to educating employers and helping you to streamline your plans during these difficult economic times.