Importance of group health insurance in the post-COVID time

What do employees really need in the post-COVID world? Now, in the post-COVID world companies and employees are establishing a “new normal.” The right group health insurance plan is a vital part of it. Group insurance is a significant part of the employees’ total compensation. It provides peace of mind and security for your employees and for yourself. It results in greater employee commitment and satisfaction.

Group insurance provides supplemental coverage to better ensure the physical, mental and financial health of insured members and their families. Knowing they can benefit from such coverage is reassuring for both employers and employees.

For most companies, a combination of some standard employee benefits is a good start. Group health insurance is an invaluable support for employees and their families that lessen the stress in many different aspects of life.

What do group health insurance plans cover?

Although the federal and Ontario governments provide with major health insurance programs such as OHIP, disability, workplace injuries, etc., they don’t cover everything. Group health insurance provides additional healthcare coverage to a select group of people. There is a variety of group health insurance plans that cover dental care, vision care, prescription drug, hospital rooms, paramedical expenses, medical equipment, travel insurance, and more…

Extended health – Often the most well-known of employee benefits, extended health typically covers prescription drugs and paramedical practitioners (such as massage therapy or physiotherapy).

Dental – Preventative dental visits (like examinations and cleaning) or major dental work like crowns or bridges may be covered. Some dental plans also cover orthodontics.

Disability – These benefits are meant to provide coverage for loss of wages due to a disability. There are several types of disability coverage; long-term disability (LTD) is typically the most commonly offered disability benefit.

Life and critical illness – Coverage for some of life’s most challenging times, life and serious illness benefits provide a lump sum payment in the event of death or the diagnosis of a serious illness.

How group health insurance works

• Coverage: Usually, a group health insurance policy covers prescription drugs, dental and vision care, physiotherapy and other health services to better ensure the physical, mental and financial health of insured members.
• Coverage for dependents: In addition, dependents of eligible group members are generally eligible for coverage under a group plan. Dependents include spouses and children. Dependents cannot enrol for coverage unless the employee has enrolled. Normally, group insurance plans extend coverage to adult dependents through age 26.
• Uniform in nature: A group health insurance plan for small businesses is usually a single policy that covers the entire group of These plans are uniform in nature, offering the same benefits to all members of the group.

• No medical examination: Group health insurance does not require medical examination of their members because it is uniform in nature.
• Significantly lower costs: Members of the group buy insurance on a “wholesale” basis. The coverage costs each individual member much less than if they had to purchase an individual health insurance plan.
• Equal payments: Every insured person in the group pays the same premium amount regardless of their age or other factors. In contrast, under a private health insurance plan, a person pays different premium amount for the same coverage based on their age, location, pre-existing conditions, etc.
• Master Policy Holder: To save administrative costs, there is often a Master Policy Holder who will retain the documentation on behalf of the members, and may deal with the members on behalf of the insurer. The Master Policy Holder also ensures each member gets their certificate of coverage stating the details of the premium paid, cover available, term of the cover and the claims process
• Coverage renewal: Generally, people are eligible to renew coverage while they continue to be members of the group. Under group insurance a person will normally remain covered as long as he or she continues to work for a certain employer and pays the required insurance premiums. In contrast, under individual coverage, the insurance company often has the right not to renew an individual health insurance policy (for instance if the person’s risk profile changes).
• Coverage termination: If a person leaves the company or organization, their coverage is terminated. However, sometimes employees can maintain their health insurance plan even if they leave the company.

In addition to all the benefits of group health insurance we’ve already mentioned, there are three major advantages for employees:

• Opportunity to obtain basic coverage without evidence of insurability.
• Possibility to pick and choose a plan that best suits their needs.
• Chance to share costs with their employer.

Employee benefits are an important tool for all organizations. Supporting and rewarding employees to improve a company’s performance just makes sense. If done right, an employee benefits plan can positively impact the growth and performance of a company.