Canadian companies face benefits cost sticker shock when setting up shop in the U.S.

Canadian employers that decide to set up shop in the United States will notice a big difference when it comes to benefits costs. In the United States, the average premium for family coverage for employer-sponsored health-care benefits was US$17,545 in 2015, according to an annual survey by the Kaiser Family Foundation. For single coverage, the average premium was US$6,251. Conversely, in Canada, the average cost of providing benefits for employees was $8,330 (in Canadian dollars) per full-time equivalent that same year, according to a study by the Conference Board of Canada.

Ontario Special Advisors Make 173 Recommendations in their Final Report on the Changing Workplace

In May 2015, the Ontario government appointed two Special Advisors (Michael Mitchell and The Honourable John C. Murray) to review the modern-day workplace and to consider whether the Ontario Labour Relations Act, 1995 (“OLRA”) and the Ontario Employment Standards Act, 2000 (“ESA”) require amendments to reflect workplaces as we know them today (the so-called “Changing Workplaces Review”). The Review was initiated to deal with the government’s primary concerns with key workplace-related issues, including non-standard working relationships, the expanding service sector, workplace diversity, technological change and globalization, and trade liberalization.

THE 2017 SANOFI CANADA HEALTHCARE SURVEY

The 20th anniversary of The Sanofi Canada Healthcare Survey, Canada’s premier survey on health benefit plans, brings to light that there is still much opportunity to learn from and improve employee health benefit plans. This year’s survey highlights that barely half (53%) of employees say their health benefit plan meets their needs extremely or very well, down from 73% in 1999 when the question was first asked.

Public plans facing costs pressure

The latest CompassRx report of public drug plan expenditures shows that Canadian plans are getting squeezed by rising drug costs.

The annual report, which analyses drug spending trends for 11 publicly funded plans, showed a $1-billion spike in prescription drug spending during the 2015-2016 period. That brought total documented expenditures up to $11.3 billion, 79.7% of which was covered by the plans. The rest was paid by beneficiaries either out-of-pocket or through private drug plans.