The Beneplan Co-operative has issued $1.3 million in patronage dividends to its policyholders, which are small and medium businesses with group benefits plans.
The dividends were a result of a surplus between premiums and expenses, which were paid to The Co-operators Life Insurance Company, which underwrites the risk.
The dividend was split in the following ways:
- $255,000 came from a refund from the life insurance benefit;
- $90,000 came from an retail sales tax rebate, which was recovered from the Canada Revenue Agency; and
- $945,000 came from the difference between health and dental premiums paid, and claims, fees and taxes expensed.
The total dividend of $1.3 million represents 9% of total health and dental premiums paid by members of the Beneplan Co-operative.
“We’re hoping to give back a larger percentage of premiums in 2015, due to a couple of new initiatives we’re working on, which includes the launch of a multi-tiered drug formulary,” says Yafa Sakkejha, general manager of Beneplan Inc., which manages the Beneplan Co-operative. “If we can provide small businesses with more dividends, we will have delivered the value that our co-operative promises.”