An increasing amount of business owners are frustrated with their elevated premiums and high renewal rates. The culprit is often high limits per paramedical services. Paramedical services includes; massage therapy, physiotherapy, chiropractic care, acupuncture, and osteopathy. Broadly speaking, these are services that are not covered by provincial health plans. A Plan design that allows limits per practitioner will likely lead to steady increases in premiums.
Consider a group benefit plan allowing for $500 per person, per practitioner. Also consider that massage therapy accounts for over 50% of paramedical claims in Canada (massage therapy is arguably not a coverage necessity). This per practitioner structure opens the door to massive claims and large increases in premiums year over year.
There are a couple options – revisit the plan design an implement safeguards to control premiums or leave the Plan as is.
If you’d like to reduce premiums by still offering your employees a comprehensive plan you may want to consider:
1) Combining all paramedical services to an overall max.
2) Implementing a Health Care Spending Account.
Both alternatives will effectively reduce per practitioner maximums and help control costs. At the same time, these solutions should not impede your employees from receiving coverage for necessary paramedicals.
For more information regarding group benefits and paramedical services – please see this article.
Curious about insurance and investments but unclear where to begin? Talk to Northern Financial Group. We have been advising individuals and businesses since 1987.
