The Beneplan Co-operative from Beneplan on Vimeo.
What is the Beneplan Co-operative?
Beneplan Inc runs the Beneplan Co-operative, which provides group health benefits to small & medium employers (20-200 employees) in Canada. The Co-operative is a non-profit, member-owned structure, which acts as a buying group for the purpose of purchasing group health insurance at the lowest price possible.
Beneplan underwrites policies through either The Co-operators Life, Standard Life, or RBC Insurance.
Beneplan is the lowest-cost provider in Canada for group benefits. Here’s why.
Lowest Fees in Canada
- Beneplan provides fully-insured group health benefits to employers at the lowest possible prices: ASO fees.
- Fees range from 12% to 18%, depending upon company size.
- Compare those with 20% to 40% that insurance companies mark up the exact same fully-insured plans.
- This is possible because we do not ‘shop the market’ and spread business with multiple insurers.
- Beneplan obtains volume discounts based on our group of 250 employers representing 20,000 lives.
Refunds / Dividend Cheques if your Claims are less than Premiums
- The Beneplan Co-operative refunds excess premiums back if claims + fees are lower than premiums.
- This refund can also be called a patronage dividend for being a Beneplan Co-operative member.
- This refund represents the profit which other insurance companies keep – but we give back to you.
- Beneplan Inc does not take any portion of the refund as compensation – your refund is your refund.
- Beneplan Inc makes a flat 5% admin fee to administer this buying group.
- If a member company pays in less premiums than claims + expenses, they are not liable for the deficit.
Over 220 Businesses are Beneplan Members
Refunds apply to the following benefits
- Extended Health Care
- Dental Care
- Vision Care
- Life Insurance premiums
- RST Tax
Beneplan is currently working on obtaining refunds from insurance companies for our clients on the following benefits:
- Drug rebates
- Long Term Disability premiums
- Patronage dividends for more profit
Other Beneplan Services
- Weekly Indemnity (Short Term Disability) adjudication
- Paramedical fraud prevention
- Paramedical claim adjudication
- Consulting on synchronizing with government subsidy programs
- Benefits administration (billing & reporting)
These combined refunds could theoretically pay for all expenses and fees, so an employer could end up paying for only the cost of their members’ claims (before stop-loss / reinsurance).
Beneplan Inc was established in 1989.
Beneplan created the Multi-Employer Health & Life Trust in 2000, which was restructured to be the Beneplan Co-operative Corp in 2013.
“Where does the refund come from? How do you make any profit?”
- Members receive an average refund of 11% of paid premiums.
- This is due to what our industry refers to as Inflation or Trend.
- When an insurance company prices your plan, they use a formula which starts with claims paid in previous years.
- Inflation is added to claims, to account for the fact that inflation is 15% in the health care sector.
- Fees and taxes are added to this number to arrive at the Premium.
- If your company’s employees did not experience inflation – meaning, no-one spent anything extra than they spent last year – that is where the money comes from.
- The padding which is added to be conservative is given back to the employer if it was not needed.
Participating employers own the Co-operative and elect a Board of Directors to oversee operations.