Canada’s demographics paint a cautionary tale for benefits advisors and plan sponsors.
Canada’s demographics paint a cautionary tale for benefits advisors and plan sponsors.
Fewer plan members will be left to shoulder the costs associated with aging baby boomers and the growing occurrence of chronic disease.
In the 1960s, there were eight working people for every senior. In the coming decades the ratio will fall to only two to one, raising the question of where the required funding for health care will be secured.
"This study clearly shows that there must be a real discussion about the traditional employee benefits plan," said David Willows, Vice President, Strategic Market Solutions, Green Shield Canada.
"We know people like getting their glasses and massages paid for, but demands for expensive but highly effective drugs and chronic health care are increasing rapidly. There must be a real discussion about employee benefits plans and how they are increasingly out of synch with the reality of our health management needs today and into the future."
A Green Shield Canada study shows that a disproportionate amount of member expenses, approximately $144-million, was spent on glasses, orthotic shoes, and chiropractic and massage services last year. Yet, only $100,000, or under 1 per cent of that amount was spent on dietitians and nutritionists.
Escalating drug costs are another chief concern. During the study period, the predominant debate was about the ability of Canadian employers to afford escalating benefits costs to cover expensive drugs for conditions such as rheumatoid arthritis and hepatitis C.
"Yes, these drugs cost a lot, and, while our industry is united in the belief that Canadian employers and individual consumers pay unnecessarily high prices, what cannot be denied is the positive impact they can have on employees," said Willows.
"A drug that can cure hepatitis C or move someone with rheumatoid arthritis from a bed back to work is a sound investment for an employer."
Fewer plan members will be left to shoulder the costs associated with aging baby boomers and the growing occurrence of chronic disease.
In the 1960s, there were eight working people for every senior. In the coming decades the ratio will fall to only two to one, raising the question of where the required funding for health care will be secured.
"This study clearly shows that there must be a real discussion about the traditional employee benefits plan," said David Willows, Vice President, Strategic Market Solutions, Green Shield Canada.
"We know people like getting their glasses and massages paid for, but demands for expensive but highly effective drugs and chronic health care are increasing rapidly. There must be a real discussion about employee benefits plans and how they are increasingly out of synch with the reality of our health management needs today and into the future."
A Green Shield Canada study shows that a disproportionate amount of member expenses, approximately $144-million, was spent on glasses, orthotic shoes, and chiropractic and massage services last year. Yet, only $100,000, or under 1 per cent of that amount was spent on dietitians and nutritionists.
Escalating drug costs are another chief concern. During the study period, the predominant debate was about the ability of Canadian employers to afford escalating benefits costs to cover expensive drugs for conditions such as rheumatoid arthritis and hepatitis C.
"Yes, these drugs cost a lot, and, while our industry is united in the belief that Canadian employers and individual consumers pay unnecessarily high prices, what cannot be denied is the positive impact they can have on employees," said Willows.
"A drug that can cure hepatitis C or move someone with rheumatoid arthritis from a bed back to work is a sound investment for an employer."
