If you have a minimum of 150 employees participating in your employee benefit program, you can offer them a Modular Flex Plan. The pooled benefits which are the Life, AD&D, Dependent Life, Long Term Disability and Critical Illness are a base plan that all employees must participate in. These pooled benefits are normally paid for by the employees so they will be tax free should they make a claim.
Where the Modular Flex comes in are with the Experience Rated Benefits, Extended Health and Dental. The Employer would offer and pay for a base plan, which we have called Bronze, such as the example below. If the Employees decide they would like a more comprehensive benefit program they will pay the difference between the Bronze and Silver plan or the Bronze and Gold plan. Every year the employees will have the ability to change the option that they have chosen.
These are examples of how the 3 benefit plans can look like, however, you can design it anyway you would like. Some employers pay for the employee and if they want to add their dependents they pay the difference. What I like about the Bronze plan is that it has some controls on how much an employee can spend.
The Modular Flex Plan is offered by a few different Insurance Companies.
Core Benefits
| Coverage details – “EMPLOYEES” CLASS | |
| Life Insurance | v 2 x annual salary
v Maximum $135,000 v Non-evidence maximum $135,000 v Reduces 50% at age 65, terminates at age 70 v Optional Life units of $10k to $200k v Optional Life terminates at age 65 |
| Accidental Death & Dismemberment | v 2 x annual salary
v Maximum $135,000 v Non-evidence maximum $135,000 v Reduces 50% at age 65, terminates at age 70 v Optional AD&D units of $10k to $200k v Optional AD&D terminates at age 65 |
| Dependent Life | v $5,000 Spouse
v $2,500 Child |
| Long Term Disability
|
v 66.7% of the 1st $2,624 of monthly earnings, 50% of the remainder
v Maximum $2,500 per month v Non-evidence maximum $2,500 v 2 year own occupation v Benefit period to age 65 v Non-taxable v Terminates at age 65 |
| Employee Assistance Program | v Confidential Counseling for employees and their dependents |
Flex Benefits
| Healthcare | Bronze | Silver | Gold |
| Deductible | None | None | None |
| Out of Canada Emergency | 100% | 100% | 100% |
| Drug Coverage | 50%
Mandatory Generic $5,000 Annual Max |
100%
Unlimited Max |
100%
Unlimited Max |
| Smoking Cessation | Not covered | Not covered | $300 lifetime |
| Fertility | Not covered | Not covered | Not Included |
| Paramedical | Not covered | 100%
$300 year $30 per visit max (Chiro//Massage/Physio bundled with $500 combined max) |
90%
$300 year $75 per visit max |
| Eye exams | Not covered | 100% to $75 | 100% to $125 |
| Vision Care | Not covered | Not covered | $200 every
24 months |
| Home Nursing Care | Not covered | $10,000/12 months | $10,000/12 months |
| HCSA | $1,000 | $0 | $0 |
| Lifetime Health Maximum | Unlimited | Unlimited | Unlimited |
| Dental | Bronze | Silver | Gold |
| Deductible | Not covered | None | None |
| Basic Coverage | Not covered | 80% | 80% |
| Major Restorative | Not covered | 50% | 80% |
| Orthodontic | Not covered | 50%
$2,000 lifetime |
80% |
| Maximum | n/a | $1,500/year
Combined Basic and Major |
$1,500/year for Basic, Major and Ortho |
| Recall | Not covered | 9 Months | 6 months |
Contact Glendinning Insurance Services to find out more about how you can provide your employees more options.