Canadian HR Reporter

www.hrreporter.com 17 SEVEN TRENDS IN WORKPLACE BENEFITS A strong benefits plan can help business owners compete effec- tively when it comes to acquiring and retaining talent, and promote employee health and productivity. But providing attractive benefits within a sustainable cost framework can be a tough balancing act. For the past decade, employee bene- fits plans have been evolving — and COVID-19 has accelerated the pace of change. Here are some of the trends in the benefits industry. The rise of telemedicine: Roughly 4.6 million Canadians don't have a regular health-care provider, according to a 2019 report from Statistics Canada. Whether it's due to difficulty getting a same-day appointment, a nagging 3 a.m. earache or being unable or unwilling to go to an in-person appointment, tele- medicine is on the rise. For employers, the benefits of tele- medicine can include decreased presen- teeism and increased productivity and employee wellness. Adults aged 31 to 45 are the biggest users of telemedicine (37 per cent), followed by people ages 45 and older (22 per cent), according to data from Teladoc Health. Adults calling about their children account for 13 per cent of calls. The reasons for calling range from urinary tract infections and sore throats to back pain and the flu. Life insurance and long-term disability coverage: While telemed- icine is relatively new, life and long- term disability coverage continue to be foundational elements of most employee benefits plans. These bene- fits help ensure that people can provide for themselves and family members if a life-changing event prevents them from working. The statistics are grim. One in three people will be disabled for 90 days or more at least once before the age of 65, according to Statistics Canada, yet only 12 million Canadians have some level of disability coverage, according to the Canadian Life and Health Insurance Association. Life insurance owner- ship is at record lows — only 68 per cent of households have life insurance, and roughly half of those households only have life insurance through their group coverage, according to the Life — even hundreds of thousands. In its 2020 Prescription Drug Trend Report, Express Scripts Canada reports that specialty drugs represented two per cent of claims and 33 per cent of the costs. Rare disease drugs can also cost hundreds of thousands of dollars. There's also a trend of cost shifting to private plans as new drugs are devel- oped that can be administered at home versus the hospital. Innovation in benefits insur- ance: Predictive analytics, a shift to digital technologies and a focus on the customer experience are all helping to improve insurance offerings and keep plans sustainable. Psychosocial data and analyzing comorbidities, which look at how two or more diseases or conditions can affect a patient's health, are now being used in disability claims. Advances in tools such as iCBT (internet-based cognitive behavioural therapy) and pharmacogenomics can help employees get well and return to work faster. Plan sustainability and flexi- bility: Flexible plan design allows for a company's desired level of coverage and budget. Pooling is a must for insulating plans from high-cost claims. Health- care spending accounts are gaining in popularity as companies look for cost-ef- fective ways to help employees access additional health-related costs such as vision treatment or orthodontics. Expertise and the personal touch: While the insurance industry has made great strides in digitizing and innovating, employers and employees continue to want personal, expert advice. This is particularly important for small and medium-sized businesses, which may rarely experience events such as an employee going on disability. Good communication combined with a large dose of expertise and compassion will always be in demand. CHRR From telemedicine and mental health programs to innovations in insurance and plan flexibility, employee benefits are evolving ― and COVID-19 has accelerated the pace of change Vanessa Lycos is vice president of group product and marketing at Empire Life. For more information, visit www.empire.ca. While the insurance industry has made great strides in digitizing and innovating, employers and employees continue to want personal, expert advice. Insurance Marketing and Research Association. Mental health and wellness: No one knows what medium- and long- term impacts the pandemic will have on mental health. We do know that it has taken a significant toll in the short term. In Canada, there were 17 per cent more claimants for depression medications over 2019, according to Express Scripts Canada, a pharmacy benefits manager. The use of mental health services through employee assistance programs (EAPs) is also on the rise, and new services such as personalized action plans are growing in importance to help with prevention and treatment. The primary reasons people call — not surprisingly — are anxiety, depression and stress. Rising costs of drugs: High-cost specialty drugs are on the rise and these can cost tens of thousands of dollars

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