What if your group insurance plan could do more than just pay the medical bills of your employees? In today’s evolving workplace, group insurance in Canada is no longer just a checkbox for employers to fill. It’s a strategic tool for building a resilient, productive workforce. With 71% of Canadian employees becoming more health-conscious in 2024 and nearly 47% relying on their workplace benefits plan for support, the demand for wellness-focused group insurance solutions is growing.

In this blog, we explore how group insurance supports employee wellness programs in Canada, what this employee benefits plan can offer, and how employers can maximize its benefits.

What is group health insurance in Canada?

Group health insurance in Canada refers to an employer-sponsored health insurance plan that provides coverage to a group of employees within a company, as well as their dependents. Employers typically offer these employee benefits plans to support employee health and well-being. Group insurance in Canada usually includes coverage for prescription drugs, dental care, vision care, paramedical services, mental health services and more.

Group health benefits in Canada play a vital role in workplace wellness programs by contributing to higher employee satisfaction, productivity, and retention. These benefits can also boost employee morale and help businesses attract top talent within a competitive marketplace.

Why do Canadian employers offer group medical insurance?

Canadian employers offer group medical insurance to improve employee health, enhance job satisfaction, and maintain a competitive edge in the labour market. Group insurance in Canada also supports employee wellness programs that help businesses increase their revenue and boost productivity.

• Enhancing employee wellness and morale: Group health benefits in Canada offer access to preventative care, mental health support, and chronic disease management, which contribute to happier, healthier teams
• Attracting and retaining top talent: Comprehensive insurance for employee well-being is a major incentive for job seekers and plays a crucial role in employee retention across competitive industries
• Reducing financial stress for employees: Employer-sponsored health insurance lowers out-of-pocket medical expenses, allowing employees to focus on work without worrying about unexpected healthcare costs
• Ensuring coverage for diverse needs: From dental and vision care to group life and disability insurance in Canada, group plans address a wide range of health concerns for employees and their dependents

What are wellness programs in group insurance?

Wellness programs in group health insurance are structured initiatives that employers in Canada offer to support the physical, mental, and emotional well-being of their workforce. Employers offer wellness programs as a part of employee benefits plans to encourage healthier lifestyles, reduce stress, and prevent chronic illnesses among employees, ultimately enhancing their overall performance.

Wellness programs may include mental health coverage, fitness incentives, nutritional counselling, preventive health screenings, and more. By including wellness benefits for employees, employers demonstrate their commitment to long-term employee health. These initiatives not only improve employee morale but also help reduce absenteeism and healthcare costs for employees in Canada

How do group insurance plans support employee wellness?

Group insurance plans support employee wellness through a variety of integrated services and programs designed to improve physical, mental, and financial health. These benefits may include Wellness Savings Accounts (WSAs), mental health services, chronic disease management, access to virtual healthcare apps, lifestyle coaching and more.

Wellness Spending Accounts

Wellness Spending Accounts (WSAs) allow employees to use a fixed amount of funds toward health-related expenses that fall outside traditional group health benefits in Canada. 

Employees can spend these funds on services like gym memberships, fitness equipment, yoga classes, meditation apps, or even massage therapy. WSAs give employees the flexibility to choose wellness solutions that best suit their lifestyles, encouraging a proactive approach to health and well-being.

Employee Assistance Programs (EAPs)

Employee Assistance Programs (EAPs) provide confidential, short-term counselling and support services for employees and their eligible family members. These programs typically include access to mental health counselling, crisis intervention, legal and financial advice, and support for issues like stress, anxiety, grief, or family conflicts. 

Therapy, counselling, and psychology services

Beyond EAPs, many Canadian group health benefits include coverage for extended therapy and psychology services. Employees can access registered psychologists, social workers, or clinical counsellors for longer-term support. 

These services may cover issues such as depression, trauma, relationship challenges, or burnout, with annual coverage limits depending on the plan. This ongoing access helps employees manage their mental health more effectively and promotes long-term wellness.

Chronic disease management and preventive care

Group insurance plans in Canada often include chronic disease management programs that assist employees living with conditions like diabetes, hypertension, or asthma. These benefits may include regular check-ups, health coaching, dietitian consultations, and medication management. 

Preventive care measures, such as biometric screenings, flu shots, and routine health assessments, are also offered to detect early signs of illness and encourage healthier living habits.

Access to virtual healthcare and wellness platforms

Access to virtual healthcare and wellness platforms is now a common feature in group insurance wellness initiatives. Employees can consult with doctors, therapists, or nurses via phone or video calls, reducing the need for in-person visits. 

Many wellness platforms also provide mental health tools, fitness tracking, sleep improvement apps, and guided meditation sessions. This digital accessibility makes it easier for employees to prioritize their health on their own schedules.

Lifestyle coaching

Lifestyle coaching is another wellness benefit often included in employer-sponsored health insurance plans. 

Certified wellness coaches guide employees through goal-setting in areas such as weight management, stress control, physical activity, and sleep quality. Coaching sessions may be delivered one-on-one, in groups, or through digital platforms.

Smoking cessation

Smoking cessation programs are designed to help employees quit tobacco use through counselling, nicotine replacement therapies, and education. These services are frequently included in group health benefits in Canada and may be supported by pharmacists or healthcare professionals. 

Financial wellness

Financial wellness support is an increasingly important component of employee wellness programs in Canada. Group insurance plans may include access to financial counselling, budgeting workshops, debt management tools, and retirement planning resources.

What are the benefits of offering group medical insurance with wellness programs?

Offering group insurance with wellness programs in Canada creates a healthier, more engaged workforce while strengthening an employer’s overall business strategy. Some of the benefits of offering wellness-focused group health insurance may include reduced absenteeism, higher employee retention and better recruitment within a competitive market.

• Reduced absenteeism and improved productivity: Wellness benefits for employees, such as mental health coverage and preventive care, lead to fewer sick days and higher on-the-job efficiency
• Enhanced employee retention and satisfaction: Employer-sponsored health insurance and personalized wellness initiatives increase job satisfaction and loyalty, reducing turnover
• Cost savings for employers in the long run: Group insurance wellness initiatives help detect health issues early, lowering long-term medical and disability claim costs
• Better recruitment outcomes in a competitive job market: Group health benefits in Canada, especially those with wellness programs, make employers more attractive to top talent seeking comprehensive support

What is the cost of a group benefits plan that supports employee wellness?

In Canada, the cost of a group benefits plan that includes wellness initiatives typically ranges from $75 to $130 per employee per month, depending on the level of coverage and services offered. Employers can choose between Basic, Standard and Enhanced plans, depending on their budget and requirements.

The total monthly cost of group health insurance also depends on company size, industry, demographics, and plan customization. Below is an illustrative breakdown for small to mid-sized businesses offering group health benefits in Canada:

Cost of wellness-focused group health insurance in Canada

*These are sample figures for different plan tiers. Actual costs may vary based on plan design, company details, and employee demographics.

Can employers customize group benefits to support wellness initiatives?

Yes, employers in Canada can customize group benefits plans to align with their wellness initiatives and meet the unique needs of their workforce. Many Canadian group benefits plans offer flexible components such as Wellness Spending Accounts (WSAs), Employee Assistance Programs (EAPs), and mental health coverage under employee benefits. 

Employers can also include options like virtual healthcare access, lifestyle coaching, or chronic disease management to promote preventive care. By offering customizable group health benefits in Canada, organizations can support diverse employee wellness goals. It also strengthens employer-employee relationships, improves overall employee engagement, satisfaction, and long-term health outcomes.

Are wellness incentives tax-deductible for employers in Canada?

Employers in Canada can generally deduct wellness incentives as business expenses, but the tax treatment varies depending on the type of plan and expense.

Health and dental benefits paid through a private health services plan (including HSAs) are fully deductible for employers and non‑taxable for employees. Similarly, extended health coverage and Employee Assistance Programs (EAPs) are usually non‑taxable to employees and fully deductible to employers.

Wellness Spending Accounts (WSAs) or Lifestyle Spending Accounts that reimburse non‑medical wellness expenses (such as gym memberships or wellness classes) remain tax-deductible for employers. However, they are considered taxable benefits to employees, and employees must report the allowance as income on their T4 slips.

What are the common challenges for employers offering group insurance with wellness plans?

While group insurance with wellness benefits offers significant value, employers in Canada often face challenges with budget constraints, implementation and management of these plans. These challenges can affect both the effectiveness of the program and employee participation.

• Cost management and budget constraints: Balancing comprehensive group health benefits with affordability is difficult, especially for small businesses trying to manage tight budgets
• Low employee awareness and engagement: Employees may underutilize wellness benefits due to a lack of awareness or understanding, reducing the impact of the wellness program
• Difficulty in customizing benefits for diverse needs: Designing flexible plans that meet the unique health and wellness needs of a diverse workforce can be complex and resource-intensive
• Compliance with Canadian employment and privacy laws: Employers must ensure that group insurance wellness initiatives adhere to federal and provincial laws regarding health data privacy and non-discrimination
• Provider limitations and rigid plan structures: Some insurance providers offer limited customization, making it hard for employers to align group benefits plans with evolving employee wellness goals

Tips for employers offering wellness-focused group insurance plans in Canada

Employers can maximize the impact of wellness-focused group insurance plans by taking a strategic and employee-centric approach. These tips may include ensuring proper customization of plans, conducting employee surveys to understand their needs and choosing the right insurance provider.

• Customizing benefits to meet employee needs: Tailor group health benefits and wellness programs based on the specific demographics, health concerns, and lifestyle preferences of your workforce
• Surveys and data-driven personalization: Use employee surveys and claims data to identify gaps and trends, then adjust benefits offerings to better support employee wellness goals
• Ensuring mental health parity in benefits design: Provide equal coverage for mental and physical health, including access to therapy, counselling, and digital mental health platforms
• Communicating benefits clearly and regularly: Promote wellness benefits through onboarding, emails, info sessions, and internal portals to boost employee awareness and usage
• Partnering with the right group insurance provider: Work with experienced insurers in Canada (such as our licensed advisors at PolicyAdvisor) who offer flexible plan design, strong wellness support, and seamless claims management

How to get the best group insurance quotes in Canada?

Finding the best group insurance quotes in Canada isn’t just about comparing prices. It’s also about choosing an insurance provider who understands your team’s unique needs and helps you build a plan that works today and scales with your business tomorrow.

At PolicyAdvisor, we work with Canada’s top-rated group insurance providers to deliver affordable wellness-focused group insurance plans for businesses of all sizes. Whether you’re a startup with just two employees or a growing organization, our experienced, licensed advisors can guide you every step of the way! 

We can help you compare quotes, customize your coverage, and secure the most competitive rates available. Schedule a call with us today and get the most affordable group insurance plan that fits your budget and needs.