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Posted by Louise Gagne, FICA, FSA, November 19 2015
Savings strategies
A Modular Group Insurance Plan : The Answer to Everything ?


You are investing time and money in your group insurance, but your employees never seem satisfied. Your Generation X employees ask for enhancements to the plan, the echo boomers find them too expensive, the youngest don’t want any insurance at all, and you don’t know which way to turn. You need to make your plan more flexible, but how? If you have more than a hundred employees, AGA can assist you in implementing a modular group insurance plan for health care and dental care that could help solve this problem. Learn more in this article!

Health Care and Dental Care Modules 

A modular plan provides your employees with coverage choices catering to a wider variety of needs and situations. It offers 2 or 3 health care and dental care options, depending on the circumstances and your objectives.

For an average size group, all employees usually have the same life insurance, ADD insurance and short- and long-term disability insurance coverage, without any options, in order to keep the plan administration simple and avoid losing employees in a maze of decisions to make. 

A Credit System for Improved Cost Understanding and Control

Through the use of a credit system (dollars given to employees by the employer to help them pay the cost of insurance coverage), a modular plan can also demonstrate to employees the full cost of their group insurance and make them better understand the value of their employer’s total compensation package. It’s harder to say your insurance plan is worthless when you know that it costs more than $3,000 to protect your family! The credit system also helps control costs for the employer, if so desired.

Planning and Communication: Keys to Success

To make the program successful, the design, pricing and cost sharing must be carefully thought out, so as to prevent a deterioration of the plan’s experience and ensure the proposed options really meet employee needs. There is no use drafting a 3-choice program if 98% of employees end up selecting the same option.

The administration of modular plans and employee communications are two key elements to be considered in the implementation process. In that respect, AGA has several solutions for plan sponsors, from the simplest to the most sophisticated. 

If you are interested, contact an AGA advisor to learn more. With our proven implementation process for modular group insurance plans, you will be sure to get the plan that works best for you and your employees. 


Louise started her career at Blue Cross before working as a Senior Advisor for a large actuarial firm for more than 15 years. Fellow of the Canadian Institute of Actuaries, Louise joined AGA in June 2014. She assumes responsibility for training, provides technical support, and supplies advisory activities for the large business clientele. Louise is also lecturer at l’UQAM.
Louise Gagne, FICA, FSA