What is The Beneplan Co-operative?
Beneplan Inc is the administrator of The Beneplan Employee Benefits Co-operative Inc, which provides group health benefits to small & medium employers (20-1000 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 is the lowest-cost provider in Canada for group benefits. Here’s why.
Lowest Fees in Canada
- Beneplan provides fully-insured group benefits at the lowest possible prices: ASO fees.
- Fees range from 12% to 18%, depending upon company size.
- Compare those with 20% to 40% (TLRs of 68% to 81%) which insurance companies mark up the 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 over 250 employers (20,000 lives).
- The Beneplan Co-operative refunds excess premiums back if expenses are lower than premiums.
- This refund is also 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.
- Extended Health Care
- Dental Care
- Vision Care
- Life Insurance premiums
- RST Tax
- Federal Premium Tax
- New – Drug rebates direct from the manufacturer
- New – Long Term Disability premiums
- Weekly Indemnity (Short Term Disability) adjudication
- Paramedical fraud prevention & claim adjudication
- Consulting on synchronizing with government subsidy programs
- Benefits administration (billing & reporting)
- HR and Legal issues with respect to benefits
- Drug Access Facilitators who help plan members with extremely expensive medications
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 in 2013.
“Where does the refund come from? How do you make any profit?”
- Members receive an average refund of 8% 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 12% in the health care sector and 6% in dental care.
- 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 Beneplan Co-operative and elect a Board of Directors to oversee operations.