News & Views

Small business makes up a huge part of the Canadian economic landscape. What’s unique about small business owners is that their business and personal financial goals are often connected – and the winning solutions designed to meet those needs extend across traditional product lines: group, insurance, banking, wealth products and more.

According to Industry Canada, there are more than 2.3 million small businesses across the country and close to 140,000 new operations starting up each year.  This is good news!  Businesses need to know there are affordable benefit options available for every budget, which will protect their employees health and well being!

Traditional approaches to drug plans need to be revisited, but the industry needs to move toward a properly designed flexible benefits program that fosters better understanding among members, according to Morneau Shepell’s recent News & Views.    

While the rate of drug cost increases has been slowing recently, new drugs coming on the market in the near future will drive up costs at a daunting rate.  This will further worsen an imbalance common among health benefits plans, where between 10% and 15% of members are incurring more than 80% of plan costs. Costs will also rise as boomers age and, ironically, as generations X and Y make up more of the workforce.  The younger generations may actually be less healthy than generations that have gone before them, as obesity, cholesterol, high blood pressure, asthma, allergies and diabetes are more frequently diagnosed in the younger generations than ever before.

Traditional “one-size-fits-all” plan designs cannot handle growing costs or diversity of needs.  However, any solution would need to ensure that those who demand less of their plan are not unfairly shouldering the cost of those who rely more heavily on the plan. Traditionally, singles and couples have subsidized plan usage by families, while the healthy subsidize the unhealthy.

The authors point out that most traditional three-option plans see roughly 70% of members enrolling in the middle option, while 10% to 15% enroll in the higher-end option.  A better design for flexible plans would include incentives for improved individual health, which would foster reduced use of the plan.

“Benefits programs will need to take lessons learned from the ‘true’ insurance world and the hard lessons learned about financial management and credit from the latest economic downturn and weave them into both plan designs and how we all use benefits programs.”

Source: Benefits Canada – August 22, 2011

 

 

 

April, 2011 –

Are you a member of the Guelph Chamber of Commerce?  The GCC has launched a “new” local group benefits program for small businesses, along with an EAP program offered by Homewood, Guelph.  These programs are designed and affordable for companies from 1 – 200 lives.  Call us for a quote, or a comparison of your current plan. This GCC affinity program is a means of providing and giving back to its members!

 April, 2011 -

Just a reminder…. For a list of legally reimbursable medical and dental expenses refer to Canada Customs & Revenue Website – www.ccra-adrc.gc.ca – go into “forms & publications” – download interpretation bulletin IT519R2  

March, 2011 –

We are delighted that 2011 has brought a new look to Train Insurance Services Inc.     Although the look has changed, the expertise, service and accountability remains unchanged.  We are Employee Group Benefits Specialists, with enthusiasm to ensure every company has the ability to provide benefits to their employees.  We focus on the challenges employers face and we are dedicated to providing flexible options for affordable, optimal, long-term benefit coverage.

Why is it so important for all employers, regardless of size, to provide benefit coverage to their employees?   We strongly believe that everyone wins when benefits are in place.

For the Employer…

• The attraction and retention of talented, productive workers
• A desire and responsibility to care for employees’ physical and mental well-being
• A reputation for being a caring, concerned employer
• Company owners benefit with personal participation

For the Employee…

• Payment of day-to-day medical and/or dental expenses
• A sense of financial security
• Loyalty to a good employer

 Since 1998, the sanofi-aventis Healthcare Survey has monitored the pulse of Canadians with employer-sponsored health benefit plans.

The Advisory Board believes the economy has heightened the appreciation of benefits as plan members became more aware of their benefits, with increased utilization due to fears of cutbacks. 77% of respondents agree that the current economic environment has increased the value they place on their health benefit plan. Thirty-one per cent “strongly” agree with this statement. Men and women aged 55 and older are more likely to agree (87% and 83%, respectively), while plan members in Quebec (67%) and those earning less than $30,000 (68%) are less likely.

“Peace of mind plays a bigger role in the current economic environment,” says Advisory Board member Sarah Beech, Managing Principal, Hewitt Associates. “When times are difficult people are looking for that extra security, that safety net.”

 Source: sanofi-aventis Healthcare Survey, 2010

 

January, 2011 –

The federal government recently announced an increase in the employment insurance (EI) maximum insurable earnings amount and a corresponding increase in the EI weekly maximum benefit. Effective Jan. 1, 2011, maximum insurable earnings will increase to $44,200 per year from $43,200. Accordingly, the new maximum EI benefit amount will be $468 per week ($44,200 at 55 per cent, over 52 weeks).

Short-term disability (STD) plans that have a maximum set at the EI maximum, rather than at a specific amount, will automatically increase effective Jan. 1.

If your plan has a specific dollar maximum that is less than $468 per week, and you participate in the EI premium reduction program, you will need to amend your plan to at least $468 per week in order to remain eligible for the program.

If your STD plan has a specific dollar maximum and you participate in the EI premium reduction program, you may wish to consider amending your plan to a maximum that is automatically adjusted to the EI maximum. This will avoid the need for future amendments whenever the EI maximum changes.