Category: Blog Posts

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?

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.

While the federal government’s plan to extend parental benefits under the employment insurance program to 18 months is a welcome move for some working parents, it could create a number of issues for employers that provide top-up programs to their staff.