Beneplan : The Future of Canadian Benefits 2017

transcript

— Beneplan

The Future of Employee Benefits: 2017 and Beyond

Introduction

Vince Principato LLQP

President, Beneplan

AGENDA• About Beneplan

• Trends: Benefits in 2025

• Artificial Intelligence, Chatbots & Snapchat

• Marijuana

• Genetics

• Biologic Drugs

• Reducing Premiums

• Total Rewards

• Brokers

Who are we?

Controllers and

Presidents

HR Directors

Board of Directors &

Audit Committee

• Formed in 2000 based on customer demand

• Members-owners are Canadian SMEs w/ 20-1000 employees

• Annual growth rate 35%

• The only benefits co-operative in Canada of its kind

The Beneplan Co-operative

• On average, 8% of premiums are refunded as patronage dividends

• 80% of members receive dividends

• Other 20% of members have deficits (claims > premiums) absorbed by co-op

• Millions in distributions since 2000 as of 2015

• Source of dividends: premiums on health, dental, life ins, LTD, RST recovery, drug rebates from pharma

Patronage Dividends

• 100% Transparency

• Full accountability

• Decision making focused on members first

• Helping small business owners

• Low premiums enabled by mutual ownership

Our Co-operative Values

Refund Accounting: Life Insurance Long Term Disability Retail Sales Tax

“As an auto supplier, business is tough. The $30,000 dividend we received during the recession helped us through payroll.”

Clover Tool Manufacturing

Benefits Trends 2017 to 2025

Yafa Sakkejha General Manager Beneplan

AVERAGE HEALTH PREMIUMS

• Average health premium in 1996 was $80

• Average health premium in 2006 was $150

• Average health premium 2016 is $200

• In 2026, the average premium will be $325

• Median age worker will be born in 1984

• Children born in the year 2005 will start to be enrolled as employees

• People will commute in driverless cars

• Artificial intelligence

• Chatbots to ask questions

• Snapchat to submit claims

WECHAT

RED PACKETS

WECHAT MAY BE YOUR INSURER

21% Yes

It Depends

Survey of HR Professionals Sept 2016: Should medical marijuana be covered

under a group benefits plan? [Beneplan]

HR POLL, SEPT 2016

• "It's too easily diagnosed and abused."

• "If it is essential to help minimize pain and suffering then yes."

• "We have too many employees who operate heavy equipment."

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HOW CAN YOU ENSURE IT’S NOT ABUSED?

• Liken it to a cigarette or alcohol policy.

• Do you allow people to smoke cigarettes or drink alcohol at work recreationally? No.

• What if someone has a smoke or drink at 8am, and comes to work at 9am?

• Therefore, it may not change this aspect.

DISCRIMINATION?

• Can it be deemed discriminatory if an employee requests coverage for a medicine, and that medicine is not covered?

• “But Fentanyl patches are covered - why isn’t medical marijuana?”

• It can be deemed discriminatory to exclude a class of medications on the basis of employer choice (Ex Remicade)

HR IMPLICATIONS

• Employees must be lucid at work

• Employees in safety-sensitive positions must be careful

• Are any employees currently taking it before or after work?

• Are they significantly impaired?

DRUG TESTING AT WORK

When is it OK? When is it not OK?

Post-incident or near-miss with evidence of impairment Pre-employment screening

Return to work testing after a rehab stint, part of a condition of return Random testing for no reason

Evidence your workplace has had a substance abuse problem

No evidence workplace has a substance abuse problem

HOW TO ADJUDICATE?

• Medical evidence given to an independent third party

• Check out the doctor’s history

• Where was it purchased?

• Is there a history for that prescribed condition?

• Is the dose reasonable?

• In what form is it taken?

Pharmacogenetics in HR

YOU ARE A UNICORN

MUTUALIZATION & REDUCING PREMIUMS

Plan Sponsor Insurer

2015, 2016: Increase in employee benefits captives in Canada and US

Mennonites: The original mutual insurance company.

Prescription Drugs & Biologic Trends

Trend: More Plan Sponsors Negotiating Drug Rebates from

Manufacturers (ex: Reformulary)

TOTAL REWARDS

BROKERS WILL BE MADE MORE RELEVANT, AND MORE

KNOWLEDGEABLE

Thank You

Yafa Sakkejha General Manager yafa@beneplan.ca

The Beneplan Co-operative 150 Ferrand Drive Suite 500

Toronto Ontario M3C 3E5 1.800.387.1670

beneplan.ca

Beneplan : The Future of Canadian Benefits 2017

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