Our spring session provided an overview of trends and benefits plan best practices. Here are a few quick highlights for those of you who couldn’t make it or who need a refresher.
Flexibility is Key: With up to five generations now working together, it can be tough to deliver a one-size-fits-all plan that meets everyone’s needs.
There are many ways to introduce flexibility, from a simple health spending account all the way to a cafeteria-style plan. The positives of flexibility might include cost containment depending on what method is chosen, and the fact that employees have the power of choice. On the other hand, flex benefits can introduce complexity from an administrative, communications, and payroll perspective.
Health Spending Accounts: Increasingly, employers are looking for opportunities to “self-insure” certain non-catastrophic benefits like vision coverage, paramedical coverage, and dental.
The benefit of adding this defined-contribution funding method is that there is an element of fixed cost added, and employees can be better motivated to become benefits plan consumers.
Drugs: High-cost and Ultra-high cost drugs are not going away. Of the 20 – 30 new medications approved by Health Canada each year, 2/3 are high cost.
With potential costs that can reach $2.5 million annually, it’s important for organizations to assess how tolerant they are to risk of increased costs.
Wellness: Increasingly employees are looking for wellness programs to be part of their benefits plan. There are low-cost ways to incorporate wellness solutions so that you can articulate your values as an organization and to help employees create an emotional attachment to your organization.
FinTech and BenTech: Carriers are finally introducing new ways of reducing the paperwork burden on for employees and plan administrators. Watch for e-enrolment opportunities coming your way!
Mark your calendars for our next panel discussion on
October 22, 2019 from 7:45 – 9:15 am.
This discussion will focus on employee engagement strategies and trends.