Frequently Asked Questions
What are group benefits, and why do employers offer them?
Group benefits are employer-sponsored programs that provide employees with coverage such as health, dental, life insurance, disability protection, and wellness support. Employers offer group benefits to support employee wellbeing, attract and retain talent, and create a more competitive compensation package. For many businesses, a well-designed group benefits plan also offers cost efficiencies and tax advantages compared to individuals purchasing coverage on their own.
Why do group benefit plan costs increase at renewal?
Renewal increases are influenced by factors such as claims experience, plan usage, inflation in healthcare costs, and insurer pricing trends. While some increases are unavoidable, many can be managed with proper planning, transparent analysis, and proactive design adjustments. A clear renewal strategy helps employers understand why changes are happening and what options exist to control long-term costs.
How much do group benefits typically cost an employer?
The cost of group benefits depends on several factors, including the size of your workforce, plan design, coverage levels, and employee demographics. There is no one-size-fits-all price. A thoughtful plan can be structured to balance meaningful coverage with budget sustainability. Working with an independent advisor helps ensure your plan is designed around your goals and that renewal increases are clearly explained and managed over time.
What are proprietary block arrangements, and how do they benefit employers?
Proprietary block arrangements group employers together under a shared pricing structure, allowing for more predictable renewals and access to competitive rates not typically available through standard plans. These arrangements can provide greater stability, improved cost control, and long-term sustainability—especially for small to mid-sized businesses looking for consistency in their benefits planning.
What is the advantage of working with an independent group benefits advisor?
An independent group benefits advisor is not tied to a single insurance provider, which means recommendations are based on your needs—not product limitations. Independent advisors evaluate multiple options, explain costs transparently, advocate on your behalf during renewals, and provide ongoing support for both employers and employees. This approach helps businesses make informed decisions and build benefit programs that remain effective long term.
What is an Administrative Services Only (ASO) plan, and when does it make sense?
An Administrative Services Only (ASO) plan is a self-funded arrangement where the employer pays for actual claims as they occur, while a third party administers the plan. ASO plans can offer greater flexibility and potential cost savings for organizations with stable cash flow and predictable claims experience. An assessment is essential to determine whether ASO is an appropriate and sustainable option for your business.
Resources
Helpful Resources for employers
Retirement Planning Basics for Employers and Employees
Group retirement plans can play an important role in attracting and retaining talent, while helping employees feel secure about their future. This post outlines the basics of group retirement options, employer considerations, and publicly available tools that support...
Supporting Employee Health Beyond Insurance Coverage
Employee well-being goes beyond extended health coverage. This resource highlights publicly available health and wellness supports in British Columbia that complement workplace benefits, including mental health resources and preventative care services. Employers and...
What Employers Should Know About Benefit Renewals
Annual renewals are one of the most stressful parts of managing a group benefits plan—but they don’t have to be. This post explains how benefit renewals work, why rates change, and what employers can do to prepare ahead of time. Learn how understanding renewal factors...
Understanding Group Benefits for BC Employers
Group benefits can feel complex—especially for small and growing businesses. This guide breaks down the fundamentals of employee health and dental benefits in British Columbia, including what employers are responsible for, what employees value most, and how benefits...
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