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Here’s what every business owner needs to know before you make decisions.
Why Implement Benefits?
Attract & Retain Talent
Employees see benefits as part of their total compensation. A strong plan keeps you competitive, especially against companies that recruit from the same labour pool.
Protect Employee Health
Group coverage helps your team access healthcare without overwhelming costs. It reduces stress, improves morale, and cuts down on long-term absenteeism.
Affordable for Employers
Plans often cost as little as 3 to 5 percent of payroll. It’s a small investment that delivers strong returns in loyalty and productivity.
Three Main Types of Plans
Experience-Rated Plans
This is the traditional model most brokers default to.
Your company’s own claims drive your renewal.
High claims push renewals up. Low claims push renewals down.
More volatility, more moving parts, more surprises.
Best for: companies with 20 or more employees or groups with stable claims who want more control.
The part most owners don’t know:
If you pay 50k in premiums and use 70k in claims, your renewal is going up. If you pay 50k and only use 10k, your renewal should drop. Most brokers never explain that your claims experience is the real driver behind the number.
Pooled Plans
Your rates are based on a much larger pool of many small employers.
Renewals stay predictable and stable.
No wild swings from one bad claim year.
Simple to run, fewer surprises, fewer headaches.
Best for: smaller companies, typically under 20 employees, or any business that wants predictable renewals.
Why this matters:
Most small businesses do not benefit from being experience-rated. One large claim can swing your renewal by 15 or 20 percent. A pooled plan protects you from that volatility.
Health Spending Account (HSA)
A flexible alternative or add-on.
The company sets an annual allowance.
Employees claim eligible health and dental expenses.
No premiums, no hidden moving parts.
Best for: companies wanting tight budget control or those who want to complement a basic plan.
Important note:
An HSA is not insurance. It will not cover large expenses. It’s best used to fill gaps or control spending with absolute predictability.
Things to consider
Plans require almost all eligible employees to participate. This helps keep your pricing stable.
All plans have limits to prevent abuse. These are normal and protect the plan long term.
New employees typically have a waiting period before they can join the plan.
Premiums can be shared between the company and employees, but the employer must fund at least half of the benefits cost under Canadian rules.
Not sure which plan fits best? I’ll walk you through the options in 15 minutes.
A quick, no-pressure call to review your plan and give you real clarity. No jargon, no quotas, no bias. Just straight answers and strategies built for small businesses.
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