Extended health care plans offer a wide range of coverage options designed to address the diverse needs of your team members and their families. Explore what extended health care benefits entail and why they’re an essential component of your employee benefits package.
What is Extended Health Care?
Extended health care refers to a range of health-related services and expenses that are not covered by provincial health insurance plans. These may include prescription medications, paramedical services (such as physiotherapy, massage therapy, and chiropractic care), vision care, dental care, and more. Extended health care benefits provide financial assistance to employees for these out-of-pocket expenses, helping to alleviate the financial burden of maintaining good health.
Key Features of Extended Health Care Plans
- Flexible Coverage Options: Extended health care plans typically offer flexible coverage options that can be tailored to meet the specific needs of your organization and employees. Whether you’re looking for basic coverage or comprehensive benefits, we can work with you to design a plan that aligns with your objectives and budget.
- Access to Preferred Providers: Extended health care plans can provide access to a network of preferred providers, including pharmacies, healthcare professionals, and dental clinics. This ensures that employees have access to high-quality care from trusted providers, helping them make informed decisions about their health and well-being.
- Wellness Programs and Resources: In addition to coverage for health-related expenses, many extended health care plans offer wellness programs and resources to support employees’ overall well-being. These may include employee assistance programs (EAPs), mental health resources, and wellness initiatives designed to promote healthy lifestyle choices.
Why is Group Extended Health Care Important?
Financial Security
Health-related expenses can add up quickly, especially for individuals and families with ongoing medical needs. Extended health care benefits provide employees with financial security, helping to offset the cost of prescription medications, treatments, and other health services. This can reduce financial stress and improve overall quality of life for employees and their families.
Employee Attraction/Retention
In today’s competitive job market, offering comprehensive extended health care benefits can give employers a competitive advantage in attracting and retaining top talent. Job seekers often consider the quality of employee benefits when evaluating potential employers, and companies that offer robust extended health care benefits are more likely to stand out as employers of choice. By investing in employee health and well-being, employers can strengthen their employer brand and attract high-caliber candidates to their organization.
Promotion of Preventive Care
Extended health care benefits often include coverage for preventive services such as annual check-ups, vaccinations, and screenings. By encouraging employees to proactively manage their health and seek preventive care, employers can help prevent more serious health issues down the line. Preventive care not only improves employee health outcomes but also reduces healthcare costs in the long run by identifying and addressing health concerns early on
Choosing the Right Extended Health Care Plan
Extended health care benefits are essential for promoting employee health and well-being, reducing financial stress, improving access to care, and maintaining a competitive edge in the labor market. By investing in comprehensive extended health care benefits, employers can create a healthier, happier, and more productive workforce while demonstrating their commitment to supporting the overall well-being of their employees.
Selecting the right extended health care plan requires careful consideration of your organization’s needs, budget, and employee demographics. It’s essential to work with an experienced insurance advisor who can help you evaluate your options and design a plan that meets your objectives.
At Barnett & Associates, we specialize in providing tailored group benefits solutions that prioritize the health and well-being of your employees. Contact us today to learn more about our offerings and how we can support your organization’s needs.
The plan sponsor will generally decide on the coverage percentage within its organizational goals and objectives.
Claims are handled with a mix of automatic and manual systems depending on the insurance provider. Some use a pay direct drug system (automatic at time of purchase), others use online and mobile app systems.
Costs are determined within the context of the system and are generally influenced by the amount of 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.
Insured Experience Rated: Rates are based on the claims, demographics and inflation.
Pooled: Organizations are placed in a group with other undisclosed participants. Various factors affecting rates are lumped together (claims, demographics, etc). The insurance provider then delegates rates to meet the overall needs of the pool.
Self Insured: The Organization has there own personal fund to imburse claims. The organization can choose to process these claims or outsource processor.
Extended health care 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.