Running a small business in Canada means wearing a lot of different hats. From strategist to problem-solver to a one-person HR department, there are many roles a business owner often has to fill. With so many responsibilities, managing benefit plans for a small business can feel like yet another burden on an already full list.
The good news is that benefit packages for small business owners are now easier than ever to offer thanks to options like GMS's Group Advantage Plans for small businesses with 3–49 employees. To help you decide if this plan is the right choice for your small business, we'll go over everything you need to know about group health benefits, including why employee health coverage matters, what options are available, how group benefits work, and how flexible plans such as those offered by GMS can be tailored to fit your business.
Why Employee Health and Wellness Matter for Small Businesses
Healthy employees are the foundation of a thriving business. When your team members feel fully supported (and that includes their physical, mental, and financial health), they are a lot more likely to be engaged, productive, and loyal to your company.
In Canada, public healthcare covers essential physician and hospital services, but many everyday health needs are not fully covered. Prescription drugs, dental care, vision care, paramedical services, and mental health support often require private insurance or out-of-pocket payments. Without an employer-sponsored plan, these gaps can create a lot of stress.
Given the rising costs of healthcare, comprehensive coverage is more important to employees than ever. Even in small organizations, workplace health benefits have become increasingly sought after. Without them, businesses may struggle to compete for skilled workers—especially as larger employers continue to expand their benefit offerings.
What Is a Group Health Benefit Plan?
A group health benefit plan is a health insurance plan offered by an employer to eligible employees and, in many cases, their dependents. Unlike individual insurance, group plans spread risk across multiple people. This typically results in more comprehensive coverage at lower rates.
For small businesses, group plans are designed to be flexible and scalable, allowing employers to choose coverage levels that align with their budget and workforce needs.
Group health benefit plans for small business typically include coverage for things like:
- Prescription drugs
- Dental care
- Vision care
- Paramedical services (e.g., physiotherapy, massage therapy)
- Mental health support
- Travel health insurance
- Life insurance, critical illness and disability coverage (optional)
At GMS, our group health benefit plans are specifically designed for small businesses with 3–49 employees. These plans make it easy for small business owners to offer exceptional benefits to their employees without the complexity often associated with traditional group insurance.
How Group Health Benefits Complement Canada’s Public Healthcare System
Canada’s public healthcare system provides a strong foundation by covering essential physician visits and hospital care. However, it does not address many of the health expenses employees encounter in everyday life. This gap is where the value of employer-sponsored group health plans comes into play.
Services such as prescription medications, dental care, vision care, mental health counselling, and paramedical treatments are often only partially covered (or not covered at all) by provincial healthcare plans. Without additional insurance, many Canadians are left unable to afford these beneficial healthcare services.
By filling the gaps it doesn't cover, group health benefits are a strong complement to Canada's public healthcare. For employees, it eliminates a lot of financial stress and allows them to prioritize their well-being. For employers, this added layer of coverage supports a healthier workforce and reduces the downstream impacts of untreated health issues.
By combining Canada’s public healthcare system with a comprehensive group benefit plan, small businesses can offer employees much more complete coverage. It's an increasingly important part of compensation packages in Canada that employees are starting to value more and more.
5 Top Benefits of Group Health Insurance for Employers
If you're on the fence about whether to offer group health benefits to your employees, it's important to consider all the advantages; there are more than might first meet the eye.
From improved employee retention to peace of mind for your whole company, here are all the ways that Canadian employers can benefit by offering group health insurance:
1. Attracting and Retaining Talent
Competitive benefits are a powerful recruitment tool. Many workers consider health benefits a top factor when evaluating job offers, and it sometimes even ranks higher than salary alone.
Offering good benefits is also a great way to keep your existing employees loyal. Employees are a lot more likely to stick around when they feel fully supported by a company, and this can pay dividends in the long run when it comes to reducing turnover costs and preserving institutional knowledge.
2. Improved Productivity and Engagement
Employees who can access healthcare services without financial stress are more likely to address health concerns early. This can lead to:
- Fewer sick days
- Reduced absenteeism
- Higher energy and focus at work
Mental health support is particularly important, as untreated stress or anxiety can significantly impact productivity.
3. Cost-Effective Coverage Through Group Rates
Group plans are often more affordable than individual policies because risk is spread across the group. Employers can offer comprehensive benefits at a lower per-person cost than employees would pay on their own.
While this may not seem like a direct benefit to employers, it is a big part of why group health benefits are so attractive to employees. When you are able to offer employees comprehensive coverage at a discounted rate, it increases the value of your overall compensation package without requiring a one-to-one increase in expenses.
4. Peace of Mind for Employers and Employees
Providing health benefits creates stability. Employees gain financial protection and access to care, while employers gain confidence knowing their team is supported. This peace of mind can ultimately impact a company in a lot of different ways and helps foster a culture where employees feel genuinely cared for.
5. Strengthens Company Culture and Employer Brand
Speaking of company culture, offering group health insurance helps reinforce a culture of care and responsibility within your organization. When employees see that their employer is truly invested in their well-being, it builds trust, goodwill, and a stronger sense of belonging. Over time, this can help create a positive employer brand—one that helps businesses attract top talent due to their reputation as a supportive, people-first workplace.
Implementing a Group Health Plan: What Employers Should Consider
There are a lot of important things to evaluate before you select a group health plan, including considerations like:
- Employee demographics and needs
- Budget and long-term sustainability
- Desired level of coverage
- Administrative simplicity
Whichever plan you choose, it's important to communicate clearly with employees about what the plan includes, how it works, and how to access benefits. That way, everyone in your company can take full advantage of all your group health plan offers.
Why Small Businesses Are Choosing GMS Group Advantage Plans
Small businesses often face some unique challenges when it comes to employee benefits. Budgets are tighter, administrative resources are limited, and every investment must deliver clear value.
Our Group Advantage Plans address these challenges by offering:
- Flexible plan design with tiered options
- Predictable costs and group-rated pricing
- Simplified administration
- Scalable coverage that grows with your business
GMS Group Advantage Plans are available in Silver, Gold, and Platinum options, allowing employers to easily select a package that balances affordability with coverage.
How Group Benefits Support Mental Health in the Workplace
In recent years, there has been an increased focus on the importance of mental health. More and more employers are recognizing just how big an impact the mental health of their employees has on productivity. That's why it's important to choose a group health plan that offers employees comprehensive coverage for mental health services.
By providing coverage for services such as therapy and counselling, small businesses can ensure that their employees are better able to combat the impact of workplace stress and whatever else might be inhibiting their mental health. This is a major key to creating a healthier, more resilient workforce at your company.
At GMS, we recognize how crucial mental health is, both to small businesses and the people that they employ. All of our Group Advantage Plans include varying levels of coverage for services from clinical psychologists, clinical counsellors, registered social workers, and psychotherapists, ensuring that employees all over Canada are able to access these critical services.
Cost Considerations for Small Businesses
One of the biggest concerns for employers is affordability. Group Advantage Plans are structured to provide value at different price points, allowing businesses to start with a plan that fits their current budget.
Factors that influence cost include:
- Number of employees
- Chosen plan level (Silver, Gold, Platinum)
- Coverage categories and maximums
- Employee participation rates
Because group rates are typically lower than individual plans, offering benefits can be a cost-effective way to enhance total compensation without significantly increasing salaries.
Common Questions About Group Health Benefit Plans
- How many employees do I need to qualify for a group plan?
GMS's benefit packages for small businesses are available to businesses with 3–49 employees, making them accessible to many Canadian small businesses.
- Do I have to cover all employees?
Eligibility rules typically require a minimum participation rate to ensure fairness and stability. Coverage is usually offered to all eligible full-time employees.
- Can employees add their dependents?
Yes. Most group plans automatically provide coverage for spouses and dependents unless they have other benefits in place, increasing the value that the benefit plan offers.
- Are group health benefits taxable in Canada?
Some benefits, such as employer-paid health and dental premiums, are generally considered non-taxable benefits for employees. Others may be taxable depending on the coverage type. Employers should consult a tax professional for guidance.
- What happens if an employee leaves the company?
Coverage typically ends when employment ends, though some plans may offer employees the option to convert their coverage to an individual policy.
- Can I customize coverage levels?
Yes. Group Advantage Plans are designed to offer flexibility, allowing employers to select from tiered packages that align with different budgets and coverage needs.
Investing in Your Team Is Investing in Your Business
Employee health benefits are more than just another business expense. They are an investment in your people and your company’s future. In a competitive labour market, offering group health insurance can help small businesses stand out, foster loyalty, and build a healthier, more productive workplace.
With flexible options like GMS Group Advantage Silver, Gold, and Platinum plans, small businesses can choose coverage that meets their needs today while leaving room to grow tomorrow.
Want to learn more about GMS's affordable benefit packages for your small business? Contact us today! We'd be happy to answer any questions you have and help you choose a group health plan that is perfectly suited for your small business.