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What Is the Average Price of Group Health Insurance?

by rashid guestpost - 21 Jun 2022, Tuesday 325 Views Like (0)
What Is the Average Price of Group Health Insurance?

The public insurance plan covers basic health and drug risks. However, these protections are minimal so submitting a group insurance is a good complement.

Group insurance offers a greater margin in terms of reimbursement for the care that may be provided to you. However, the ceiling of the insurance plan depends on several factors such as the budget of the company or the products offered by the insurer.

 What is group insurance?

Group insurance is financial protection offered by the employer to its employees. It covers several types of risks, the most important of which relate to health care.

Operation is simple. The company uses an insurer who offers it a group health insurance plan. The choice of options depends on the needs of each company. The cost of this plan is then shared between the employer and the employee. The latter will pay a monthly installment which will be deducted from his salary. The amount of this contribution varies according to several factors:

  • The part covered by the employer
  • The number of coverages in the group insurance plan
  • The number of dependents of the employee
  • The employee's job category

Among the securities offered by group insurance, we distinguish:

  • Life insurance (employee and dependents)
  • Accidental death and dismemberment
  • health insurance
  • Dental care
  • Disability insurance
  • The employee assistance program

The contents of an insurance plan may differ from company to company. It can include a wide variety of protection ( travel insurance , dental care, etc.).

 Why is group insurance necessary?

Living costs are high and savings do not always cover all the unexpected. This is where group insurance comes in. Even if the employee and the employer adhere to it by agreement, this security offers several advantages to both parties.

The worker obtains various health benefits under health insurance. He can, among other things, be reimbursed for hospitalization, a medical emergency or the purchase of medication. For his part, the employer benefits from increased productivity and a deductible expense. 

 What is the average cost of group insurance?

The cost of group insurance varies according to the number of risks covered and the number of employees to be insured. Several other factors can influence the final amount to be paid.

 The average price of group insurance for an SME

The annual premium for a group insurance plan depends on the needs of each company. For an SME, the average annual price for a group insurance plan generally varies between $1,500 and $4,000 for each employee.

Of course, this value is shared between the employer and the employee, but the employer will have to pay the premiums in full to the insurer. The employee's share will then be deducted from their salary each month.

 The cost of group insurance for an employee and his family

Group insurance does not only cover the insured employee, it also covers dependents. Group insurance costs slightly more for additional family members.

A part of this sum being borne by the employer, the employee should only pay $750 to $2,000 per year per employee contribution. The cost of individual group insurance is therefore generally between $62 and $166 per month.

 What factors influence group insurance costs?

The cost of group insurance is highly variable. Several factors come into play such as the value of the insurance product offered by your provider, the different types of health insurance, the experience of the group, etc.

 The diversity of risks covered

As you can imagine, the more different types of coverage you add to your contract, the more it will cost. It is therefore important to know how to differentiate between essential and optional protection.

The necessary insurances are:

  • Life insurance: it concerns the employee and his dependents.
  • Dental care: includes visits to the dentist and examinations and treatments.
  • Disability insurance: it is paid in the event of inability to perform one's duties for a given period.
  • Health insurance: it can cover different types of risks depending on the protection provided by the company. The most essential being: medicines, health care, eye exams and paramedical care.

The optional insurances are:

  • Travel insurance: it includes medical expenses during the stay, cancellation or even repatriation.
  • Drug insurance: it is generally included in health insurance. There is therefore no real need to take out an additional plan to cover this risk. This implies that this security increases the drug reimbursement rate and covers more prescription drugs.
  • Accidental death and dismemberment: this clause supports life insurance in the event of an accident resulting in death or dismemberment. It corresponds to an additional sum to be paid to dependents.

 Employee demographics and salary

The cost of insurance premiums varies according to the reference group. If the experience of the group shows on average a high rate of complaints, the insurances will be more expensive. Among the parameters that influence the experience of the group, we find in particular the salary. For example, better paid jobs carry less risk of long-term disability, since each month of sick leave means a greater loss for the employee. He is normally more motivated to return to work.

 The type of industry

The area in which your business operates influences the type of plan you will need to subscribe to and the price paid for the protections. For example, a construction company has more risk of claims than a doctor's office. Thus, the premiums are more expensive or the protections are limited.

Accidental death and dismemberment insurance is often included in the group life insurance policy and protects employees from probable accidents in their occupation.

 Other factors

Other less important elements also have an effect on the price of group insurance such as:

  • The specialization of insurance companies in certain trades
  • The recent completion of a call for tenders
  • Competition in the protections sought

 Why offer group insurance to its employees?

 The benefits of a group insurance plan for SMEs

We don't talk often enough about the usefulness of group insurance for SMEs. A company that offers attractive group insurance has a great chance of attracting the best performing talents on the job market. In addition, the company will benefit from better stability and generally a lower turnover rate.

However, it is important to know that the investment of SMEs in a group insurance plan is less taxing than paying it as a salary, taking into account the social charges and the taxable premiums. Fortunately, good group insurance offered to your employees will increase their productivity.

 Benefits of group insurance for employees

With comprehensive group insurance, the worker benefits from:

  • Cost-effective care for him and his dependents
  • A higher reimbursement rate for drugs compared to the RAMQ
  • Substantial support in the event of hospitalization
  • Additional life and disability insurance

All these advantages allow the employee to have better long-term security and thus aspire to better living conditions. This is a significant factor for any employer who wishes to attract more qualified employees.

 Group insurance advisory service

Have you just set up your business or do you want to renew your group insurance? If the steps to take still seem difficult to you, a group insurance advisor in Greater Montreal will be of great help to you. How? We tell you more.

 Why call on a group insurance advisor?

Signing up for a group insurance plan is not a simple process. It is necessary to plan several case studies and different analyzes in order to obtain an offer that really suits the needs of the company and its employees.

A group insurance advisor analyzes his client's case in detail to identify:

  • His financial situation
  • Your business needs
  • The risks he must cover according to his activity
  • The coverages to which he must subscribe

Thanks to this analysis, it proposes the most suitable solutions . In addition, it informs you of all your social benefits. This will cut down on the time you spend doing your research and can save you a lot of money in the long run.

 Insurance products offered by an advisor

At Orchestro, not only will you have several advisors specializing in group insurance, but we also offer other services that could help you improve the management of your business. Here are some of the services offered by Orchestro:

  • Private group plan management
  • Group insurance brokerage 
  • Human Resources Support 
  • Accidental death and dismemberment insurance
  • Virtual medicine service 
  • Employee Assistance Program 
  • Disability Management Program
  • Travel insurance supplements 

With more than 40 years of experience, Orchestro offers you personalized service and regular support in all your steps throughout the process of creating your group insurance contract. Real assistance is offered to you by the team which consists not only of benefit consultants, but also of business management consultants.???????