Extended health care plans, and medical costs in Canada are expected to rise by 6.0% in 2019 according to a recent analysis by Aon.
To put this estimation into perspective, 6% is faster than the rate of inflation. As a result, insurance premiums will be directly impacted across Canada, and employers will seek alternatives to help controls costs.
Some companies are thinking short-term by resulting to strategies such as cutting employee benefits, constantly negotiating with their insurance providers, or conducting a market study every 3 to 4 years.
On the other hand, some employers are thinking long-term by focusing on implementing training programs to educate employees on how to efficiently utilize their plans or by restructuring their insurance plans to self-insured models altogether. Many companies that understand the reality of these cost increases in their group insurance plans are staying ahead of the curve by seeking new structures to better prepare their companies for the future that lies ahead.
Are your global premiums unpredictable year in and year out? Contact one of our advisors to conduct a complimentary analysis of your entire plan and present to you all possible solutions.
