Mandatory Employee Benefits in Canada
It's common for employers to provide full-time employees with a benefits package, known as employee...
By Paige Latimer
August 30, 2021
The world of insurance and employee benefits can be very confusing, especially when you’re trying to understand how it all works behind the scenes. Because it’s so confusing, many companies are now buying their employee benefits through third-party administrators (TPAs) or third-party payors (TPPs) - we're a TPP.
In this blog, we’ll explain what a third-party payor is, how it compares to other methods of insurance providers, and why they can be a good option for companies that aren’t experts in employee benefits.
What's the Difference Between a TPA vs. a TPP?
While researching different employee benefits plans and providers, you may have come across the term Third-Party Administrator (TPA); which is more commonplace than a Third-Party Payor (TPP). They both have a lot of similarities, but there is one key difference.
While it may not seem like a significant difference, from an employee's perspective, the process of submitting claims and being reimbursed is less efficient with a TPA and can take longer (for some employees, waiting numerous days or weeks to get reimbursed can impact budget).
Since TPPs receive, adjudicate and pay claims all within one company and platform, if/when there are any claims problems, TPPs can respond and resolve issues faster making the overall user experience more efficient.
TPPs were created to fill the gap in the insurance world. When an increasing number of employers started offering complex plans that contained different classes and divisions, they needed more administrative support and resources to manage the growing complexity. TPPs were born to help employers with benefit plan administration.
As mentioned earlier, the main difference between TPPs and traditional insurers is that insurers hold all the risk and TPPs don’t hold any risk but offer administrative services and payout claims only.
Most TPPs work with multiple underwriters to find employers the best price with oftentimes better coverage than if an employer works with one insurer for all benefits.
Here’s an example of a typical 5-step scenario working with Simply Benefits:
There are many advantages, but here are some of the most significant ones that will make the lives of employers and employees easier:
Since TPPs are usually smaller than big insurance companies, they can also provide employer plan admins with reports and documentation that is typically not sent through an insurer (e.g. taxable benefits report). These resources can greatly help employers with internal banking and accounting tasks.
A core part of Simply Benefits’ solution is that we partner with employee benefits advisors as opposed to doing direct businesses with companies. This makes us different compared to other TPAs/TPPs that remove advisors from the process. We even refer leads to our advisor partners.
We understand that advisors bring a lot of value to the employee benefits business because they are highly skilled and knowledgeable. This means that companies will get a more personalized experience working with an advisor and won’t have to worry about having to settle for a cookie-cutter plan that doesn’t fit with your organization.
Watch our CEO Jeff Cox speak to the value of advisors:
A Benefits Advisor (aka Consultant or Broker) helps employers navigate the complexities of benefits and design to deliver a plan that attracts and retains top talent.
Advisors educate employers on plan design and funding options for each unique business and provides valuable knowledge about effective taxation for both employers and employees, how to avoid skyrocketing premiums, how to minimize potential liabilities and negotiate with insurers to find the right carrier at the price price.
After you’ve purchased your employee benefits, advisors provide ongoing support and at plan renewal each year. Read How Simply Benefits is Putting Advisors First.
If you're an employer interested in buying employee benefits and don't have an Advisor or are looking for a change, contact us and we'll facilitate an introduction to one of our Advisor partners.
Purchasing employee benefits through a TPP will ensure that you’ll be in good hands and won’t have to worry about the nitty-gritty details. Employees like that they have one company to call and employers like the reduced administration. Hopefully, this blog taught you something about the behind the scenes of the employee benefits world and gave you insight into how Simply Benefits works.
You may also like:
Simply Benefits is a Third Party Payor (TPP) that provides Employee Health Benefits 100% digitally through our Canadian Advisor partners. Our all-in-one digital solution provides three portals that enable Benefits Advisors to digitally manage all client plans online, Employers to efficiently administer employee coverage, and Employees to view, update and use their benefits 24/7 via desktop or smartphone app.
We help ENGAGE Employees Anytime, Anywhere, SIMPLIFY the Benefits Experience and EVOLVE an Advisors’ Benefits Business.
Connect with us at simplybenefits.ca or on LinkedIn, Twitter, Facebook, Instagram and YouTube.
Employee Benefits Made Simple.
Terms + Conditions
Simply Benefits Inc. (“us”, “we”, or “Simply Benefits”) is committed to privacy and the protection of your information. By using Simply Benefits’s website, mobile and other applications, and related Services made available through the Apple App Store, the Google PLAY Store, or otherwise on the Internet (together, the “Simply Benefits Applications” or “Applications”), you acknowledge that you accept the practices and policies outlined in this Privacy Policy (“Privacy Policy“). Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms set forth in the Terms of Service and which incorporate this Privacy Policy by reference.
Privacy Policy
In accordance with Canada's *Personal Information Protection & Electronic Documents Act* ("PIPEDA") we have established policies on how we collect, use and protect any information that you give us when you use our website or services.
Required Regulatory Information
Simply Benefits collects information needed to provide services and meet the regulatory requirements of our industry. When you open an account or sign up for services, we collect personal information which may include but is not limited to the following:
Your name and date of birth
Contact details
Nature of your employment or business
Details about your dependents
Demographics
Other information relevant to the services we provide
We may receive passively-collected information through a variety of methods, including “cookies” to collect information.
Cookies are text files containing small amounts of information which are downloaded to your device when you visit a website. Cookies are then sent back to the originating website on each subsequent visit, or to another website that recognizes that cookie. You can get more information about cookies here.
Simply Benefits uses cookies to track and measure site performance and gather analytics on usage. This information is anonymous and is only used by Simply Benefits to measure and improve our site.
When sending e-mail we may use tracking pixels and urls to help us measure open rates for e-mails and link clicks. This tracking information is used internally only to help us provide relevant content and is never shared with any third parties.
If you choose, you may set your browser to notify you when you receive a cookie, giving you the chance to decide whether or not to accept it.
We use analytics tools and other third party technologies, such as Google Analytics, to collect non-personal information in the form of various usage and user metrics when you use our online Sites and/or Services.
We also use online advertising to reach new potential clients and remarketing tools that allow us to target ads to specific groups of people who have previously interacted with WealthBar’s websites.
Google allows individuals to opt out of it’s advertising cookies from its ad settings page.
Google has additional information available about their Remarketing Privacy Guidelines, and Restrictions.
Simply Benefits may use third parties to store and process data. Simply Benefits will ensure that such third party service providers have significant expertise with data and digital privacy. Simply Benefits will ensure that personal data is stored and transmitted in encrypted format using technology such as SSL. Third party data storage and processing providers may be located in the United States and as a result personal information may be subject to U.S. privacy law which may differ from Canadian privacy law.
The information we collect is used so we can communicate with you, provide benefits and insurance management services, improve our products and services, and meet our regulatory obligations.
We share only the information which is reasonably required in the normal course of business with third parties such as our custodians, securities regulators, auditors, legal counsel, or law enforcement agencies, to enable them to fulfill their obligations to Simply Benefits and our clients. We may also disclose your personal information to third-party service providers, affiliates and agents in order to assist us in providing the services you requested and to fulfil the purposes for which your personal information has been collected. Outside of this we shall not sell, distribute or lease your personal information to third parties unless we have your permission or are required by law to do so.
We are committed to ensuring that your information is secure. In order to prevent unauthorized access or disclosure, we have put in place suitable physical, electronic and managerial procedures to safeguard and secure the information we collect online. In the event that we share your personal information with third-party service providers, affiliates and agents, these parties will be required to adhere to strict confidentiality obligations and practices.
If you have a question, concern or complaint about our privacy policy, please send your comments and your contact details to our Privacy Officer in writing to the following address:
Simply Benefits Corp.
601-460 Doyle Ave,
Kelowna BC
V1Y 0C2
product@simplybenefits.ca
If you believe that any information we have on file for you is incorrect or incomplete, please write to or email us as soon as possible, at the above address. We will promptly correct any information found to be incorrect.