For Canadian businesses, offering group benefits in 2025 isn’t just a perk; it has become a competitive necessity. In 2024, 67% of life and health insurance policies in Canada were sold as part of a group plan, according to the Canadian Life and Health Insurance Association (CLHIA). This statistic highlights how group insurance has become the preferred choice for both employers and employees, delivering cost-effective coverage and streamlined administration. 

As more organizations recognize its value, understanding how to implement group health insurance efficiently can help you stay ahead in attracting and retaining top talent.

What is group health insurance?

Group health insurance in Canada is an employer benefits plan that covers a defined group of employees under one master policy. It typically includes health benefits such as prescription drugs, dental care, vision care, and paramedical services. In many cases, coverage also extends to eligible dependents.

This type of plan allows employers to offer comprehensive benefits at a lower cost per person than individual insurance. The insurer spreads the risk across the entire group, which helps reduce premiums. 

Employers typically arrange group health insurance through an insurance provider or a licensed benefits broker. Group health insurance premiums may be fully paid by the employer or shared between the employer and employees.

How long does it take to implement group health insurance in Canada?

The time required to implement group health insurance in Canada can vary significantly depending on the size of the workforce, the complexity of the benefits package, and the readiness of internal systems such as payroll and Human Resource Information System (HRIS) platforms. Typically, it may take between 2 to 12 weeks for companies to implement group health insurance plans.

Most insurers allow companies to implement their group health insurance plans on the first of every month, whereas a few companies may allow you to start the plan by the 15th of every month. Smaller organizations often have fewer administrative layers, allowing them to transition from planning to launch in a relatively short time. Larger companies, particularly those operating across multiple provinces, typically require more time. 

These companies need to gather employee data, finalize plan designs, coordinate with insurers, and communicate the group health benefits information to their staff.

• Small businesses (2–49 employees): Usually take about 2 to 6 weeks to set up and launch coverage. The process moves quickly due to fewer decision-makers and a smaller employee census to manage
• Mid-market (50–249 employees): Typically requires around 4 to 8 weeks for full implementation. Additional time is needed for plan customization, system integration, and employee communications
• Large or complex organizations (250+ employees or multi-province): Often need approximately 6 to 12+ weeks to complete the process. The extended timeline accounts for multiple locations, varied eligibility rules, union agreements, and more extensive data validation

A step-by-step guide to implementing group health insurance in Canada

The process of implementing group health insurance in Canada follows a series of defined steps, from assessing employee needs and comparing quotes to implementing the plan and educating employees. Below is a week-by-week breakdown of a group benefits implementation process in Canada:

Week 0–1: Assessing employee demographics

Collect essential information of your employees, including a complete employee census with names, dates of birth, classes, and dependents. Define group medical insurance plan objectives, budget, and employee classifications that can help you design the plan efficiently.

Week 1–2: Plan designing and decisions

During the planning stage of the group health insurance design, it is important to finalize the benefits mix, including health, dental, vision, and paramedical services. Decide on prescription medicine coverage, waiting periods, and coverage limits that align with your objectives and budget based on your employee size.

Week 2–3: Group health insurance quotes and comparisons

Compare quotes from top group health insurance providers in Canada based on coverage levels, premiums, and additional features to find the best fit for your organization. You can seek the help of insurance brokers (such as our licensed experts at PolicyAdvisor) to help you compare multiple plans and make informed decisions.

Week 3–4: Approvals and contracts

Once you have the plan design in effect, you should review and submit the contract to the insurance company. This review and approval process usually takes 5-10 business days to approve, and the online account setup may take another 5 business days. Complete the application procedure, secure necessary signatures, and confirm the effective date of implementation of the group benefits plan.

Week 4–5: Provider setup & HRIS/payroll mapping

After the group health insurance company configures the plan in their systems, your HR or payroll team will need to set up deduction amounts into individual employees’ accounts and test integrations. Seek the help of insurance brokers to complete the payroll integration and prevent any chances of errors and enrollment issues.

Week 5–6: Employee communications and enrollment

Once the group health insurance plan is set in place, it is time to educate your employees about their benefits. Inform your employees about the plan details through meetings, webinars, or written materials. Your insurance brokers will open the enrollment window via portals or paper forms, setting clear deadlines for submissions.

Week 7 and above: Paying the first premium and monitoring

Coverage becomes active on the effective date. After you pay the first premium, conduct a post-launch audit to verify enrollments, payroll deductions, and ensure there are no gaps in coverage. These steps will help you implement the ideal group health insurance plan for your employees.

Can I launch group health insurance in my company within a month?

Yes, you can launch group health insurance in your company within a month, but it requires a streamlined process and full readiness from the start. To meet this timeline, you must provide a complete employee census, decide on plan design quickly, and use e-signatures and digital enrollment tools. 

Working with an experienced employee benefits broker can speed up insurer negotiations and setup. Small businesses often achieve the implementation of group insurance plans in two to four weeks. However, larger organizations may find it challenging without strong coordination and prompt decision-making.

What delays group health insurance implementation the most?

Several factors, such as slow plan designing, multi-province complexities, payroll integration issues, etc., can slow down the implementation of group health insurance in Canada. It can often extend the process beyond the expected timeline. Being aware of these delays helps employers plan ahead and take proactive steps to avoid them.

Common causes of group health insurance implementation delays include:

• Incomplete or inaccurate employee census data: Missing or incorrect details about employees and their dependents can cause insurers to request revisions, pushing back setup timelines
• Slow decision-making on plan design: Taking too long to finalize coverage types, requesting multiple revised quotes, benefit limits, and waiting periods can stall the entire implementation process
• Late submission of signed contracts and applications: Delays in returning required documents prevent the insurer from beginning plan configuration
• Evidence of insurability (EOI) requirements: Late applicants or employees applying for high coverage amounts may require medical approval, which can add days or weeks
• Multi-province or unionized workforce complexities: Navigating different provincial regulations or collective agreements often requires additional coordination and approvals

How can you implement group health insurance in your company faster?

You can speed up the process of implementing group health insurance in your company by streamlining decisions, discussing the benefits with your employees, preparing accurate data, and leveraging technology from the start. A well-organized approach helps you meet tight timelines without compromising plan quality or employee experience.

• Prepare a clean census and confirm classes early: Provide the insurer with a complete and accurate employee census, including job classifications, to avoid back-and-forth corrections
• Decide the waiting period and eligibility rules upfront: Finalize these rules before requesting quotes so they can be built into the plan from the beginning
• Use e-signatures and digital enrollment: Adopt electronic forms and online portals to reduce paperwork delays and speed up employee sign-ups
• Lock payroll codes and test files before enrollment: Ensure payroll deduction codes are correct and run test files to prevent errors during the first payroll cycle
• Pre-approve employee communications (FAQs, email templates, enrollment guides): Finalize and approve all communication materials in advance so you can launch enrollment immediately after plan setup

How to get the best group health insurance quotes in Canada?

Finding the best employee benefits quotes in Canada begins with a clear understanding of your company’s needs and a thorough comparison of plans from multiple insurers. At PolicyAdvisor, our licensed advisors work with you to evaluate options from more than 30 of Canada’s leading group insurance providers. 

We help you design a benefits plan that aligns with your budget and coverage objectives, even if your team has as few as two employees. This feature can help you ensure that you get the most value for your investment.

Our commitment doesn’t end once your plan is in place. We provide ongoing support through our dedicated after-sales service, helping you manage your benefits effectively. Schedule a call with us today to find the right employee benefits plan for your workforce.