The tax code of Canada allows employers to provide Group Extended Healthcare coverage to its employees as a business expense and a nontaxable benefit. Extended health can include coverage for the items that the provincial health plans do not provide. The tax code encouragement has allowed the marketplace for extended health to evolve in a manner that employees might only be able to receive coverage through their employer’s benefit plan.
Extended healthcare has become an essential part of total compensation which attracts and retains top human resource talent to your organization.
Group Extended Healthcare Frequently Asked Questions
Extended healthcare can include items not included in the government health plans. Typically items like prescription drugs, paramedical providers like physiotherapy, chiropractor, massage therapists and more, out of country emergency medical, vision care, and a variety of medical expenses can be included.
The plan sponsor will generally decide on the coverage percentage within its organizational goals and objectives.
Claims are handled with a mix of electronic with pay the direct drug systems, online and mobile app claims, direct provider submission and pay and file a claims.
The cost is determined within the context of the system and generally is influenced by the actual claims, demographics and inflation.
There are three core systems, insured experienced rated, pooled and self insured with variations of the three. They all can be good systems and at anytime one could be better or worse then the other.
Extended health is a non taxable benefit and the market of offering extended health has developed around this tax benefit to the extend that what the employer can generally buy for its employees is better than what employees can buy for themselves.