Dear Subscriber,
Happy Summer... or at least that's how it feels. The weather is warming up, webinars and events are slowing down and more people are skipping off Fridays. Maybe we are slowly returning to a new normal.
The industry has been busy with more mergers, which just creates more opportunities for the independent group specialists out there. If you're not sure how, reach out, but it's all about adding value and creating relationships.
I've shared a few teasers but I am working with others to create a fully and truly pooled hybrid plan that has true transparency on pool utilization and claims. it will be truly the first of its kind in Canada and only available to CGIB members. The product will be launched September 1st with a small group of advisors and then opened up to more members as we get things established. This is NOT meant as a place to dump bad cases, but is made for a very specific type of client that is looking for rate stability and flexibility for staff. Please note that, If you choose not to be a part of the pool when invited, then you will be unable to benefit from the offering until re-invited at some point in the future. Watch for details...
As always, if you have questions, just reach out.
Dave |
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OUR EVENTS
CGIB COFFEE CHATS
Coffee chats are like a virtual breakfast. Log in and talk about what's on your mind. Best done from a computer, with a camera and a microphone. No CE credits, but also no cost, just show up.
Tuesday June 22nd @ 2pm (EST) - notice the 2pm start time & new date
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CGIB WEBINARS
CGIB Webinar - Tuesday July 6th, 2020 2 to 3:30pm
This seminar will be a repeat of the webinar originally on June 7th
Are you looking to track your benefit plan increases and don’t know where to start? This webinar will help you get started.Why? - Provide YOUR benchmark, not the insurers
- Use in negotiations with insurers
- Share with employers at renewal
- Explain inflation to employees
- It identifies you as a professional
How? - Add results to your existing CRM
- Store in a stand alone XL spreadsheet
- Utilize tracking software
What do you track? - Track bottom line? unweighted rate increases
- Do you adjust for plan design changes
- How do you handle HSA’s
- Track by Benefit (pooled vs exper.)?
How do you use it? - Insurers - to negotiate
- Website - to share with clients and prospects
- Newsletter - to share with clients
- Articles - to share with all
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Upcoming CGIB Events: Due to COVID-19 we are holding off launching or re-opening events until closer to the date.
We are holding the dates of Wednesday October 6th, and November 3rd for possible IN-PERSON Toronto seminar dates. Calgary & Vancouver to follow when it's safe to do so.
Watch for details. |
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GET ON SLACK
The CGIB SLACK channel is a great place to pose questions, share info and learn a ton from your fellow members. The info and discussions that are posted there are unlike anywhere in the industry. Sadly, about 25% of CGIB members are still missing out on all the info being shared. Others have not taken a look at all the documents, videos and information available in MEMBERS ONLY to make their life easier.
NOTE TO ALL SLACK USERS: We now have 40+ channels in Slack to handle different topics. Please take a moment to add these channels to your menu. To do so, just click on the + next to Channels on the top left. Browse the channels and then click JOIN to add each of them. By doing so you won’t be missing some really great info. |
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SUGGESTED READING
We think the information contained below is of great value and encourage you to read the articles and check out the events that interest you. In most cases, these articles and events are not run by CGIB, so please contact the organizers for more information. We take no responsibility for the websites, events, organizations or their content. |
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ACUTE CARE DRUGS DECLINED WITH COVID ONSET Prescription drug claims for acute care medications, such as antibiotics, saw significant declines at the onset of the COVID-19 pandemic, says the sixth annual TELUS Health ‘Drug Data Trends & National Benchmarks Report.’ It also shows that claims for specialty drugs designed to treat rarer, yet increasingly chronic diseases continue to account for a large percentage of eligible costs, while claims for medications to treat mental health conditions also increased. “A decline in claims for common medications like antibiotics in the early months of the COVID-19 pandemic was evident in the report findings and may be correlated to populations quarantining thereby reducing the spread of common infections, or quite possibly Canadians avoiding or delaying care due to fear of exposure to the virus,” says Shawn O’Brien, principal, health benefits management, at TELUS Health. “This trend speaks to the importance of working Canadians understanding what is covered in their benefit plan and employers having a diverse range of tools, including virtual care services, to support their employees in managing their physical and mental health.” The use of acute medications for common infections dropped by 22 per cent in April 2020, compared to the previous month. Claims for azithromycin alone, an antibiotic used for common infections such as ear infections and strep throat, dropped by 73 per cent during the second quarter of 2020. Claims for acute medications did, however, see a rise towards the latter half of 2020, likely due to more Canadians having access to and using virtual care services to secure treatment. As well, specialty drugs remain the single biggest factor influencing private drug plan management and account for a third of overall costs – yet are used by just 1.3 per cent of total claimants. Average eligible costs for specialty drugs increased by 8.7 per cent for insured Canadians aged 25 to 64, compared to 1.3 per cent for non-specialty or traditional drugs. Finally, claims for drugs used to treat depression increased by 10 per cent for adults and 22 per cent for dependents in 2020.
EARLY BENEFITS PROTECTED FAMILIES Early benefits in Canada were intended to protect the families of employees against a catastrophic such as a loss of earnings due to disability or the death of the husband who was typically the breadwinner, says Lizann Reitmeier, health practice leader at Buck. She told the Toronto Chapter of the International Society of Certified Employee Benefit Specialists’ ‘Fundamentals of Group Benefit Plans 2021’ session on ‘Ancillary Benefits’ this was “to keep the widow and her six children from showing up at the door” of the company. As time went on, benefits were extended to provide a tax effective compensation method. Most employees do pay tax on their employer’s contribution to the plan, but paying income tax on the contribution is a lot less than paying the contribution “so it’s so a bit of a win win” as the premium is tax deductible for employers. “It’s a way to enhance compensation, without actually giving people money that attracts tax,” she said. This was became more popular in the 1970s when inflation was rampant and there was a lot of programs around to limit the rate of inflation. For example, wage controls meant employers could not give employees significant wage increases, “but what they could do was expand benefits and this is actually when benefits plans became quite common in Canada,” she said. Today, benefit plans are under pressure from increasing costs, due to changing tax to improving technology and the aging population. “Costs are weighing down many employer plans,” she said.
BIOSIMILAR INITIATIVE IMPACTS DRUG PLANS British Columbia’s biosimilars initiative has had a profound impact on private drug plans, says a Telus ‘Health Benefits Hub.’ By the end of 2020, biosimilars’ share of costs among biologic reference drugs had more than quadrupled to 69 per cent for private plans. This is a significant increase from 15 per cent in May 2019 when the government first announced its program. Its health claims data for private drug plans suggests sizable savings, given that biosimilars are priced 20 per cent to 50 per cent lower than the reference biologic. “Even though it is a policy that applies only to public plan claims, it appears that private plans are following suit,” says Shawn O’Brien, principal, data enablement and HBM product, TELUS Health. The province’s pharmacare program likely motivated private drug plans to adopt their own switching policies to avoid having to take on the full cost of a reference biologic for patients who turn to their private plan for coverage. Changes in prescribing behaviour is another important factor behind biosimilars’ growing share of the private claims for biologics. “The public initiative in B.C. has influenced physician prescribing habits for all patients and we can likely expect the same result in other provinces as other public payers implement switching policies,” he says.
GROUP INSURANCE MUST BE INCIDENTAL Group insurance must be incidental to the group, says Maria Covone, group underwriting consultant, group underwriting, Sun Life, to ensure there is no exposure to anti-selection. She told the Toronto Chapter of the International Society of Certified Employee Benefit Specialists (ISCEBS) ‘Group Underwriting 101’ session at its ‘Fundamentals of Group Benefit Plans 2021’ that this means is a group cannot come together, solely for the purpose of securing group insurance ‒ there must be another purpose to the group. “If we agreed to allow groups to come together for the sole purpose of securing group insurance, we would be exposing ourselves to anti selection. Basically, the success of a group plan depends on having a good mixture of healthy and some not-so-healthy plan members,: she said. If the group is organized mainly for the purpose of obtaining the insurance, the poor risk individuals tend to seek membership, whereas the healthier persons ‒ because they don’t feel that there’s a risk and a need for the insurance ‒ won’t join the group. As well, to ensure that there is an ongoing acceptable spread of risk, a regular inflow of new and younger members and a regular outflow of older members is needed. Any turnover within a 10 to 20 per cent range is conducive to predictable experience in managing costs. If the turnover is too high, future costs cannot be predicted.
EMPLOYEES WITH CHRONIC HEALTH ISSUES SEE BARRIERS INCREASE Employees with chronic health issues have faced increased barriers receiving the care they needed over the past year, says an RBC Insurance poll, with 63 per cent citing the inability to visit a doctor or healthcare clinic as having a negative impact on their health during the pandemic. This is more pronounced compared to those without a chronic health issue (47 per cent). While over half (58 per cent) of Canadian workers with a disability or chronic health issues say their condition would deteriorate even further without their workplace benefits plan, 40 per cent also experienced challenges accessing their employers group benefits because of their unique needs. Among those who have group benefits or private coverage, Canadian employees with a disability or chronic health condition are more likely to have access to virtual care tools (48 per cent and 51 per cent respectively) than those who do not. And those living with a chronic health condition were more likely to agree that using virtual tools to connect with mental health supports were useful, compared to those who do not have a health issue (64 per cent versus 50 per cent). Julie Gaudry, head of group benefits at RBC Insurance, says, “As businesses work with insurers to make their group benefit decisions, it’s important that employers consider the broad spectrum of healthcare needs to close these gaps and ensure support for all employees.” |
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It originally means, “no longer believing in magic.” Humans like magic. It gives us solace and energy and hope. In many ways, the rational era of science and engineering and evidence and proof eliminated any practical belief in magical forces. We know how and why the sun sets every night. But we still desire magic. Creating it for your customers and peers is a gift.
My Take on Seths Post
I think this is really...our "value add" is the "magic" we bring to clients. We all like people that solve the problems we don't understand. in our case it's our magic that makes benefits easier to understand. Create some magic for your clients and prospects. |
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EDUCATIONAL EVENTS
ONLINE CE CREDITS
Looking for benefits dedicated online CE courses? Want to provide your admin and support staff with basic knowledge? Want to dig into something more detailed for your benefits/insurance business? Business Career College (BCC) has an extensive catalogue of online CE courses with a number of group benefits specific courses covering topics ranging from contractual concerns, plan designs, and underwriting requirements, to product specifics and integration with government benefits. Courses consist of narrated videos with short, online quizzes. The full catalogue includes over 60 courses, podcasts, and videos covering topics from the world of insurance, investments, financial planning, taxation, and ethics with a focus on technical content and real-world application. Courses are accredited for the maximum categories of credits and can include provincial Life and A&S credits, FP Canada, Advocis, and more! Use code CGIB on registration for your first three months free! |
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Here's somewhere you can help others, and help yourself at the same time...
New Zoomcast Series! Share Your Ideas.
We're excited to launch an advisor Zoomcast Series which I'll be hosting in the coming weeks. Sessions will be comprised of laser-focused topics and guest speakers. The format will be 20 minutes of expert presentation followed by 30 minutes or so of lively discussion.
"It's not about being the smartest person in the room. It's about being in a room where everybody is getting smarter"
We are hoping to include a wide range of business topics that will advance your benefits practice (e.g. how to use social media to promote your benefits brand).
We're still compiling the list of topics and would love your input. Give Us Ideas!
Thank you in advance for your rapid response and I look forward to sharing the complete schedule and registration details with you soon.
Robert J. Crowder CLU, GBA President The Benefits Trust |
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DRUG TRENDS DISCUSSED ‘Drug Trends and More: A Discussion on Improving Value on Drug Spend with Industry Leaders’ is the focus of a Benefits Breakfast Club session. Jeff Boutillier, general manager, pharmacy, and chief clinical officer with Express Scripts Canada, will explore the ‘2021 Express Scripts Prescription Drug Trends’ report, focusing on some specific disease trends, the impact of COVID-19, and new innovations in detecting nonadherence trends. Then, a panel of Boutillier; Mike McClenahan, managing partner of Benefits By Design (now part of People Corporation); Paul Henricks, associate director, data innovation and insights, at PDCI Market Access; and Mike Cavanagh, pharmacist/owner, Pharmasave Kawartha Lakes Pharmacy, and co-chair of the Pharmacy and Health Insurance Steering Coalition (PHISC); will explore the impact of compliance and adherence, step therapy, and plan maximums and pooling limits, as well as other industry trends to manage drug spend without compromising quality care. It takes place June 17. Information is at https://www.connexhc.com/product/bbc-webinar-national-and-regional-drug-trends/?mc_cid=f7270a65e5&mc_eid=7e402198d2
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Wednesday, June 16, 2021 - 12:00 pm to 1:00 pm EDT
As we collectively move towards establishing the new normal, it will be difficult for some to shake the stress brought on by the pandemic. After over a year of working in virtual or adapted work environments, 52% of Canadian employers feel that burnout is a top well-being issue in their organization as reported in Aon’s 2021 Global Wellbeing Survey.
Canadian workers are now facing a mental health crisis related to pandemic fatigue, increasing workloads and loss of the boundary between work and life. As a result, the risk of burnout has never been higher, creating an urgent need to address it at the organizational level.
This session led by Roee Ben-Eli, Mental Health Program Manager will provide useful tips for detecting and responding to burnout within yourself and your colleagues. He will be joined by Mary-Lou MacDonald, National Practice Lead, Health & Performance for HUB Health International to discuss how to address the shifting culture of work, changing employee needs and demands, and the link between mental and physical health, in a conversation grounded in today’s reality.
CLICK HERE TO REGISTER _________________________________________________________
The changing benefits landscape will be examined at Oak House Benefits’ ‘EvOak.’ Featured speakers include Sam Mikail, director of mental health solutions at Sun Life; Barbara Martinez, national practice leader, drug solutions, at Canada Life; and Elliot Stone, co-founder and CEO at ALAViDA. The half-day conference will explore topics such as diversity, equity, and inclusion; mental health; disability; and emerging drug trends. It takes place July 8. Information is at https://registration.socio.events/e/evoak2021 |
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Need help? Have questions? Looking for something?
Reach out to CGIB - Dave Patriarche - dave@cgib.ca - 905-886-9203 |
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