Category: Blog Posts

Bill 148 passes second reading

We first reported on Bill 148, the Fair Workplaces, Better Jobs Act, 2017 in our Employment Update in June 2017. Since that time, the Bill has passed second reading and is currently back before the Standing Committee on Finance and Economic Affairs. For the most part, the significant changes to the Employment Standards Act, 2000 (the “ESA”) contemplated by the previous version of Bill 148 remain intact. These include:

Final details of the OHIP+ program are still coming in dribs and drabs.

One area where we may see issues is for those under 25 years old, currently on medication that is on the Ontario EAP formulary.  In the past, these medications were paid for by the benefit plan, but going forward the province will pay the cost once an application has been made to, and approved by, the provincial program.

Exceptional Access Program and OHIP+ – plan member action required

The province is recommending that for those individuals taking a drug on an ongoing basis, they should be encouraged to talk to their doctor to see if the drug is part of the government’s EAP.  If it is they should ask their doctor to submit an EAP request form now to avoid interruption of coverage on Jan 1. 

Due to the provinces change in process, failing to make this application could result in the benefit plan ceasing to pay for these often expensive drugs.

Communication about OHIP+ will continue in the coming months.

Bill 148 ($15 minimum wage and other labour/employment standards reforms) was referred again to the Ontario legislature’s Standing Committee on Finance and Economic Affairs. This committee will conduct public hearings next week in the Main Legislative Building at Queen’s Park in Toronto.

The tight deadlines for these hearings were finalized and made public only yesterday afternoon, but it’s not too late to make sure your voice is heard in person, or in writing.

IN PERSON:

To request to appear for a five-minute presentation before the committee on Thursday, November 2 (9:00-10:15 a.m. and 2:30-6:00 p.m.), contact the Standing Committee on Finance and Economic Affairs at commfinanceaffairs@ola.org or 416-325-3506 by no later than Monday, October 30 at 5 p.m.

(Please note: Just like the first round of hearings, if the number of requests to appear exceeds the number of spots available, a short list will be created by MPPs on the committee.)

IN WRITING:

Written submissions will be accepted until 5 p.m. on Friday, November 3.
Please email written submissions to comm-financeaffairs@ola.org.

This is the final opportunity to help influence the outcome of Bill 148. Your individual business story could make a difference!

While it might come as a surprise to some plan members, what may seem like a freebie or giveaway with the purchase of a medical device or service can actually count as benefits abuse. And in some case, offering incentives to customers will get a provider delisted by an insurance company.

Fraser Group’s report shows that total revenues generated by the group insurance industry in Canada in 2016 increased 4.7 per cent compared to 2015, (when they reached $38.6 billion). He points out that group insurance revenue growth in 2016 was higher than that of gross domestic product. Real GDP growth (excluding inflation) was 1.5 per cent.

Fraser says costly medications have driven revenue growth for group insurers in Canada over the past two years. “The major driver of growth nationally in both years was medical benefits (drugs and extended health care services).” Revenues from medical benefits increased 4.8 per cent in 2016 and 5.5 per cent in 2015, he said.

As part of the 30th anniversary of the Pay Equity Act (Act), the Pay Equity Office has implemented several new initiatives in 2017 in support of its mandate to administer and enforce the Act. These initiatives, coupled with pending legislative changes under Bill 148, present significant changes and potential risks to employers across the province.

The purpose of this FTR Now is to consider the pay equity risks posed by Bill 148, to raise awareness of the new Pay Equity Office initiatives and to review the pay equity challenges that currently face Ontario employers.

It has been a busy period for changes to public drug programs in Ontario, as the provincial government has been working on policies with the potential to offer savings to private benefits plans: pharmacare coverage for people under the age of 25 and upgrades to the Trillium drug program for people with high drug costs. What are the possible impacts on plan sponsors?

Employers reap many benefits from employee vacations, says Lisa Taylor, president of Challenge Factory Inc., a human resources consultancy firm in Toronto. “Having a break and being able to change routine encourages creativity. It gives people the opportunity to see what’s happening from a distance and get a different perspective.”

The irony of pensions and benefits is that employees tend to ignore them until they need them or until their employer changes them. And whether it’s good news or bad news, there are almost always trade-offs.

Changing pensions or benefits can be a tough sell to employees. When employers say “change,” employees often hear “change for the worse” and are likely to react defensively. So what can plan sponsors do to ease employees’ anxiety and help ensure the change goes smoothly?