Why it’s vital for your business to have group health insurance in the post-COVID time

There are always important reasons to provide your employees with health benefits but now, in the post-COVID time it has become vital. The employment landscape has been dramatically changed. If you don’t already have an employee health benefits plan, you should. And if you do have one, you’d be wise to make sure it is still a good fit for your employees.

The COVID-19 pandemic has had an undeniable impact on employees across all industries. It has been a rollercoaster as employees have had to make changes to where they work, how they work and how they interact with others.

In this new post-COVID reality, employees really need: the right employee health benefits, flexibility to adapt to changing circumstances and a better work/life balance.

What is group health insurance?

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, for example the employees of a common employer, the members of a society, professional association or NGO.

A group of people can NOT be created only for the purpose of obtaining group health insurance. To be eligible to purchase group health insurance, people must belong to the group for other reasons that are unrelated to insurance.

If you run your own business, there is a variety of group health insurance plans that can meet your needs and the needs of your employees. For many of those plans, there is no minimum number of employees or years in business required to apply. But let’s begin from the beginning and consider the options you have to cover your needs for medical services that are not funded by OHIP.

7 major benefits of group health insurance for employers

Group health insurance helps:

1

Protect your most important asset – your employees

If you are not a one-man-business owner, your employees are your most valuable asset. It makes sense to take care of them. Knowing that extended healthcare is available any time people need it gives your employees peace of mind. Happy, focused, and stress-free employees are productive employees.

2

Support your employees

Living through a pandemic is hard! Chances are, at least some of your employees are struggling financially and/or emotionally, and some may have new health issues as a result of this tumultuous time. There have been changes to work locations, there have been changes to work hours and there have been changes to processes. Many employees have begun feeling disconnected to the workplace and social distancing has taken a toll.

3

Increase productivity

When your employees are not getting the medical and emotional support they need, they’re likely not able emotionally and physically perform at their best. With financial and emotional obstacles weighing them down, it’s hard to come to work and be a top performer. The result is that productivity suffers. You want your employees to be happy and healthy so they can focus on their work and the right employee health benefits plan can help with this.

4

Attract and retain employees

The COVID-19 pandemic has sent shockwaves through the workforce. Some businesses were temporarily or permanently closed, others significantly reduced their operating hours. This meant that there was movement in the workforce – employees shifted to other companies and other jobs when their original employer closed shop. Now, as businesses re-open, lots of employers are struggling to get workers to come back. Employers also have to contend with government programs like the Canadian Emergency Response Benefits (CERB), where some employees receive a higher wage through the benefit than if they were actually working. This has meant some workers are reluctant to return to employment.

5

Make a smooth transition back to the office

During the COVID-19 pandemic, working from home was a safer option to combat an unprecedented public health emergency. Since employers have been given the green light to have employees return to the office, there are some challenges involved in making this transition.

6

Solve worker shortages

The COVID-19 pandemic has had a dramatic impact on the labour market. As the pandemic spread, thousands of people found themselves out of work as lockdowns paused or eliminated many jobs. Now, as many businesses are opening, the reverse is true. Thousands of Canadian businesses cite ‘finding and retaining employees’ as one of their biggest strategic challenges. Likely, many different solutions will have to be deployed in order to solve these shortages. An employee benefit plan can be one of them.

7

Maximize after-tax compensation

Some group insurance plans can be designed so that these expenses will be paid from pre-tax income, saving money on taxes and leaving more money into the hands of the employees.

Additional benefit for employers – possibility to pay their medical expenses through their business

Possibility to pay for you and your family medical expenses through your business as opposed to paying for them personally is the last but not least benefit. As an employer, you can decide if you want to pay the policy premium or if the employee is responsible for the payment.

For a small business with a few employees, for incorporated professionals, contractors, and consultants, the best option for extended healthcare coverage is group health insurance.

The financial burden of paying for counseling, prescriptions, or visiting a medical practitioner may mean that your employees aren’t getting the help and medications that they need. A good benefits plan can help retain the workers that you already have and help recruit new ones. It’s a competitive job market and the right employee benefits plan can make all the difference.