Now more than ever, employers need to focus on managing their drug spend effectively and understand their return on investment. What actions can employers take now to ensure that their drug plans remain sustainable for future generations of employees?
By the early ’80s, flexible benefits had really taken off in the U.S., but it was still a relatively unknown concept north of the 49th parallel. “With such a different environment in Canada, a lot of people thought Canadians really didn’t need choice in healthcare, because it’s not the same issue,” says Bob McKay, retired last year from Aon Hewitt (formerly Hewitt Associates).
Concerns related to rising healthcare costs are weighing on the minds of Canadian retirees and pre-retirees, says a Munich Re study.
Getting players in the Canadian Football League (CFL) to focus on planning for their retirement while they work on passing yards or tackles is a tough play to execute. But, with the average CFL playing career lasting just 3.2 years, Mike Morreale, president of the Canadian Football League Players’ Association (CFLPA) knows it’s important to get players to consider their future.
owers Watson has partnered with Loblaw Companies Ltd. (Loblaw) as the preferred pharmacy services provider for the firm’s Canadian Rx Coalition, a collaborative network of private sector drug plan sponsors.
Statistics Canada reports that the Canadian population is expected to grow 0.7% in each of the next two years and 82% percent of that growth is expected to come from immigration. By 2025, 100% of the growth in the labour market is expected to be satisfied by new immigrants to Canada Clearly, the face of the Canadian labour force is changing and your benefits program should be changing with it.
Workplace wellness has gained a considerable amount of momentum in the Canadian marketplace. A lot of organizations have already implemented programs to promote employee health with many more are developing strategies. Still, there are those employers that continue to resist in this area, on the basis that the return on investment is not clear.
Don’t reject tried-and-true benefits communication methods in exchange for exclusive use of the latest technology. DuPont Canada hasn’t. The global science company relies on good old-fashioned mail and a phone hotline—in addition to more modern online processes—to ensure that its retirees have all the information they need to make their annual benefits choices.
Multinational companies are looking to gain more control over employee benefits plans, mostly to counter rising costs and financial risks, but the majority has a ways to go before accomplishing that goal.
As our population ages, it’s inevitable that some employees will need to take on a caregiving role in addition to their full-time jobs. In 2007, Worklife Canada estimated that this phenomenon is costing Canadian employers $2 billion annually in productivity (approximately $1 billion in absenteeism costs and another $1 billion to $2 billion in indirect costs).