Canadian HR Reporter Weekly

3 Canadian HR Reporter, a Thomson Reuters business 2018 March 28, 2018 individuals, because we all underestimate the cost of what we're getting from our drug plans," she said. "ey're a significant component of employer benefit costs — drugs." "People are working past 65 and we can't discount that group because that's becoming increasingly common, and they may be higher users of drugs as well, even though they remain in employment." Effect on retirement plans Organizations that do offer retiree benefits may cover the $100 deductible and subsequent co-pays, according to Sullivan. "Any retiree program that's got a lot of retirees or people over 65 on their plan in Ontario, I expect the net savings will be somewhere around $250 per person," he said. "at's not immaterial, but it's not like it's going to be an enormous windfall. It doesn't mean that all of the drugs seniors are taking are going to now just disappear off the plan." However, many employer plans do not offer retirement benefits, muting the impact the program's expansion could have on organizations, said Stephen Frank, president and CEO of the Canadian Life and Health Insurance Association in Toronto. Employers will need to mull over continued coverage of a formulary more extensive than the ODB, he said. "As with OHIP+, if an employer has a formulary that's broader than the ODB — which most do — then of course they'll have a decision to make on whether they continue to offer that broader list of drugs or not," said Frank. "at'll be a case-by-case decision for each plan sponsor." Advice for HR e expansion of OHIP+ programming will be an easy switch for HR practitioners, according to Natasha Monkman, pension and benefits lawyer at Hicks Morley in Toronto. "It'll probably fit in seamlessly with what's in place," she said. "Most plans are basically saying, 'Whatever doesn't get covered by the government, then we might provide coverage for that.' So that will mean that a little bit more is being covered by the government than already is the case." However, with a national pharmacare strategy in the works, HR would be wise to prepare for further changes down the road, said Sellers. A review of post-retirement plans could be in order to ensure employer offerings only cover claims in excess of any government-paid benefits — including prescription drug coverage, she said. "(HR) should continue to monitor this whole issue and any developments," said Sellers. "It is a big deal to change or discontinue post-retirement benefits… but they should just ensure that they have the power to amend their post-retirement plans and to terminate or reduce benefits without restriction." While it is difficult to alter frameworks provided to current retirees, it is worthwhile to plan ahead with appropriate amendment and termination language to address the specific action of reducing benefits to take account of government plans, she said. Providing seniors with prescription drugs is going to make life more affordable and help seniors stay healthy and independent, said Ontario Premier Kathleen Wynne. Credit: REUTERS/Mark Blinch Universal dental benefits? Ontario's Liberals aren't the only party promising major changes to provincial health care. If elected in June, the province's New Democratic Party would offer universal dental care for students, seniors and employees who are not offered dental benefits — which adds up to about 4.5 million people. "In Ontario, one in three working people don't have a workplace benefits plan — including those working in the gig economy," said party leader Andrea Horwath. Under her "Ontario Benefits" plan, a minimum standard for dental plans would be created, serving as a threshold all employers would need to meet through participation in a publicly administered plan or comparable workplace benefits plan. Seventy-five per cent of Ontario Benefits would be funded by employers, while workers would contribute 25 per cent of the cost. But basic dental care is not a major issue for employers, according to Mike Sullivan, CEO of Cubic Health, a drug plan analytics firm in Toronto. "It's not a massive pain point. The cost of dental benefits is very easy to predict from year to year," he said. "It's not immaterial, but it's predictable and it's budgetable, so most plans know what they're dealing with." The volatility of drug benefits and issues with fraudulent health claims are much bigger concerns, said Sullivan.

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