There are a number of BC group benefit plans frequently asked questions that we come across all the time. Here is a quick reference for you if you have questions about group benefits or employee health insurance in general.
How are costs shared between the employer and employees?
You as the employer decide how the costs are shared, however, there is a minimum employer contribution. Most often you will see a 50/50 split with employees. Employees often pay at least their life insurance, dependent lift and long-term disability for tax reasons. Sharing the costs makes offering group benefits a collaborative effort between employees and employers.
Who is eligible for a group benefits plan?
Most plans stipulate that employees must work a minimum of 20 hours per week, for at least 45 weeks out of the year to be eligible. You as the employer can adjust these levels depending on the requirements of your business. If your business has annual lay-offs and then re-hires (construction industry for example), benefits can be extended for up to 4 months as long as premiums are paid.
Is BC Medical Services Plan (MSP) included in the plan?
BC MSP is NOT included in your group insurance plan. The purpose of a group benefits plan is to provide extended coverage for services not covered under the provincial plan.
What do business owners need to implement a group benefits plan?
There are three requirements for business owners:
- Your company must be incorporated
- Your company must be in business for 6 months or more
- You must have less than 50% of your employees directly related to you (family members)
What is the difference between Cost Plus and a Taxable Spending Account?
Cost Plus is commonly used for “one-off” expenses and does not require a set-up process. Taxable Spending Accounts (TSAs) provide a pre-determined annual allocation amount per employees. Click here to learn more about TSA’s.
This is a small list of BC group benefit plans frequently asked questions. If you have more questions, we encourage you to contact the employee benefits experts at DENT Benefits!
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.