Group Insurance Trends and Predictions for 2021

COVID-19 is, unfortunately, here to stay

No surprises here — all indications point to COVID-19 being a major factor affecting not only the group insurance industry but Canada at large in 2021. Exactly how group insurance will be affected remains unclear, but here are a few things we’re already seeing: 

• Increasing adoption of telehealth and telemedicine services

• Mental health’s impact on employees and workplaces

• Changes to benefit plans

• Potential impact on renewals

• Work from home arrangements and a growing gig economy

Adoption of telehealth and telemedicine will continue

Without question, the COVID-19 pandemic has led to increased attention and adoption of telemedicine and telehealth services. We’ve seen provinces working hard to expand provincial health plans to include more telehealth and other technological innovations, such as the COVID Alert app. 

It seems likely that the social and physical distancing guidelines that Canadians have become accustomed to will remain in 2021. Due to the continued presence of COVID-19 and the steep rise in adoption of telehealth we saw in 2020, we expect these remote health services to continue to see a boom in usage.

Canadians’ mental health will continue to be challenged

Canada’s mental health crisis was already on everyone’s radar well before COVID-19 came onto the scene. Now, in the wake of the global pandemic, anxiety and depression is only making Canadians’ mental health worse. 

There are many trends we’re expecting to see in 2021 that directly relate to mental health, including:

• A continued rise in Employee Assistance Programs (EAP)s as employers amplify the importance of employee mental health.

• Rising Long Term Disability (LTD) incidence rates as disability claims for mental health increase through a combination of COVID-19 and reduced stigma.

• Separation of paramedical practitioners and plan maximums, specifically for psychologists and social workers, to allow employees access to more support.

• A struggle to maintain work-life balance due to work from home arrangements potentially leading to increased feelings of isolation, overwork, anxiety, and depression.

• An increasing number of anti-anxiety and depression medication usage to combat mental health issues.

COVID-19 will affect renewals

Each Insurer is approaching renewals during the time of COVID-19 a little differently.

The direct effects of these approaches are difficult to predict. However, we expect to see a more ‘hands-on’ approach to renewals in 2021.

Increased claims cost due to Personal Protective Equipment (PPE) charges

The potential for increased costs due to Personal Protective Equipment (PPE) charges, specifically for dental and paramedical claims, is high. Many practitioners will incur additional costs to ensure their patients’ safety, such as PPE and plexiglass. Likewise, increased sanitization protocols may also be a factor that inflates claims costs.

Work from home and the gig economy will become the norm

There will be many considerations for employers in how they approach this transition to a gig economy, such as:

• How will they maintain corporate culture remotely?

• Will benefits offerings need to change to reflect the new work style?

• Should they invest in mental health resources?

• Can they safely bring employees back to work? Should they?

Many are already asking the question, “is work from home here to stay?” and so far the answer has been a resounding yes. We expect to see more workplaces adopt optional permanent work from home policies and for employers to begin tapping into a wider talent pool made available through the gig economy.

Long healthcare wait times will continue to be an issue

Healthcare wait times in Canada were already among the longest in the world before COVID-19. However, in the early days when hospitals were at reduced capacity and rightfully prioritizing coronavirus patients, thousands of elective surgeries were cancelled. Now many hospitals and clinics will be dealing with a backlog of procedures that can only increase wait times in Canada in 2021.

How Long is Too Long? An Infographic of Wait Times in Canada

Defined contribution plans will rise in popularity

With more Canadians working from home due to COVID-19, we expect traditional plan designs to be challenged. A desire for greater flexibility from both plan members and employers will drive this change.  Increased adoption of defined contribution plans, such as Health Care Spending Accounts (HCSA)s for options like dental, could be on the horizon.

Because these options are “pay-as-you-claim,” employers can avoid paying premiums for benefits that aren’t being used as frequently (or as we saw with paramedicals in the earlier days of COVID-19, quite literally can’t use).

Renewed focus on reviewing and updating benefits plans

We expect to see 2021 bring a renewed focus on analyzing and reviewing benefit plans, and a continuation of updates to existing plan designs as workplaces aim to accommodate not only work from home, but increasing mental health claims, drug uptake, paramedicals, and more.

For example, we have already begun to see a trend of increasing drug maximums, likely in a pre-emptive attempt to get ahead of increased mental health drug claims like anti-depressants. Likewise, adjustments to plan design, specifically plan maximums and paramedicals, are expected to continue as employers seek to make changes to better adapt to the impacts of COVID-19.

Mental Health Week 2020: Social Connection

The Canadian Mental Health Association’s (CMHA) annual Mental Health Week is May 4-10, 2020.

Mental Health Week helps to shift societal beliefs and perceptions about mental health. It helps promote behaviours and attitudes that foster well-being, support good mental health and create a culture of understanding and acceptance.

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TEB/CO has built a mental health toolkit for our clients here. This will connect you to resources you can share with employees as a way of supporting your organizations’ mental health and wellness.

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The theme of this year’s Mental Health Week is social connection. Connecting with other people and our communities doesn’t just feel good. It’s good for our mental health. 

• Research shows that social connection and social support are factors that protect and promote good mental health. 

• Feeling socially connected means you feel close and connected to others, and you don’t have to be in physical proximity to nurture a sense of closeness and connection. 

• Social isolation and loneliness are bad for everyone’s mental health. 

It’s common in our society to ask people how they are. Unfortunately, it’s also common not to provide—or expect—a truthful answer. 

• It’s common in Canada to say we’re fine, even when we don’t really mean it. 

• Every time we just go through the motions, we miss a chance to connect with others in a meaningful way. 

As we face the COVID-19 global pandemic, we need each other now more than ever. It’s time to #GetReal about how we feel and lean on others for support. 

• This Mental Health Week, let’s say more than just “I’m fine.” Let’s have real conversations with our friends, neighbours and coworkers about how we’re all really doing. We’re in this together. 

• In these days of social distancing (more accurately called physical distancing), we are learning that we don’t have to be close to feel close. We are together, even when we're apart. 

• Everyone needs emotional support at the best of times. 

• It is precisely the time, during and in recovery from the pandemic, to lean on each other. Even if we can’t be close physically with one another, we need to stay close emotionally. 

• Phone calls, video calls and other digital technologies offer excellent opportunities for connecting face-to-face, even when we can’t be in the same room. 

Get involved 

• Visit www.mentalhealthweek.ca for info and tools about CMHA Mental Health Week. 

New Pandemic Premium Relief Program for Plan Sponsors

Premium Reductions Announced

Small-and medium-sized businesses are dealing with the most challenging economic crisis of our time. Our insurance partners are committed to doing their part to help ease the financial burden on plan sponsors during this difficult period.

You may have already seen that insurers are reducing premiums for small business clients with insured health and dental plans. The insurers will be offering these reductions in response to a drop in paramedical, vision and dental claims usage during the COVID-19 pandemic.

Our updated listing of premium relief measures by carrier can be found on our Support Portal.

This may mean your deductions to your staff will also need to be reduced if you share the health and dental portion of the premiums.

Canada Emergency Wage Subsidy Legislation Receives Royal Assent

On April 11, 2020, Bill C-14, the COVID-19 Emergency Response Act, No. 2 received Royal Assent after being passed by Parliament and the Senate. This Act implemented the Canada Emergency Wage Subsidy (“CEWS”), a 75% wage subsidy for eligible employers. This subsidy is available for up to 12 weeks, retroactive from March 15, 2020 until June 6, 2020.

The Federal Government first announced the CEWS on March 27, 2020 as an additional support for businesses and workers affected by the COVID-19 pandemic.

On April 8, 2020, the Federal Government announced additional details and changes to the CEWS, which revised the program’s eligibility requirements and allowed for additional businesses to qualify for the wage subsidy program.

The COVID-19 Emergency Response Act, No. 2 further expanded criteria to determine eligibility so that employers may be eligible for more than one period based on a single monthly revenue comparison. These amendments may allow additional employers to access the CEWS.

Continue reading from the blog post …

COVID-19 Update : Round up on Labour, Employment & Human Rights

Below are the key announcements from Federal, Ontario, Alberta and BC governments that touch on workplace issues for the for April 2, 2020:

The Federal Government

Update on the Canada Emergency Response Benefit (CERB)

The Prime Minister announced more details on the CERB. Some of the key highlights are as follows:

• Eligibility criteria – Applicants must:

  • reside in Canada,

  • be at least 15 years old,

  • have not voluntarily quit working,

  • have stopped working because of COVID-19 or for reasons that make them eligible for Employment Insurance (EI),

  • had an income of at least $5,000 in 2019 or the last 12 months, and

  • have been, or expect to be, without income for at least 14 days in the initial 4-week period, and have no income thereafter.

  • not be receiving or waiting to receive the 75% wage subsidy (CEWS).

• Duration and amount of CERB benefits – Applicants will receive $500 per week between March 15 and October 3, 2020.The benefits are taxable.

• Coordination of CERB and EI – Applicants cannot receive both CERB and EI benefits at the same time. The following coordination rules will apply:

  • If the applicant is currently receiving EI, the applicant will continue to receive EI until the end of the benefit period. If the applicant’s EI benefits end before October 3, 2020, they can apply for the CERB.

  • If the applicant has already applied for EI and became eligible before March 15, 2020 (because they stopped working before March 15, 2020), the applicant will receive EI benefits.

  • If the applicant has already applied for EI and became eligible on or after March 15, 2020 (because they stopped working on or after March 15, 2020), the applicant will receive CERB benefits.

• Payment of CERB benefits – Applicants must choose whether to receive the CERB by mail or by direct deposit. Those who choose to receive a cheque by mail will receive it within 10 days, while those who choose direct deposit will receive payment within 3 to 5 days. After applying for the CERB, Applicants must confirm they do not have a job once a month to continue receiving this benefit.

• Preparing to Apply - Workers can apply for the CERB starting April 6, 2020 at Canada.ca/coronavirus. 

  • The government recommends that Canadians get ready to apply for the CERB by signing up to My Account or My Service Canada Account.

  • They should also make sure their direct deposit and mailing information is up to date with the CRA.

  • Whether you apply online or by phone, to manage the best service for everyone, the government has set up specific days for you to apply.

Individuals are asked to use the following guidelines:

If you were born in the month of:

January, February or March

April, May or June

July, August or September

October, November or December

Any month

Apply for CERB on:

Mondays

Tuesdays

Wednesdays

Thursdays

Fridays, Saturdays & Sundays

Your best day to apply:

April 6

April 7

April 8

April 9

Learn more about the CERB from the Federal Government’s website.

Update on the Canada Emergency Business Account (CEBA)

Canadian banks are announcing their fully digital application process to apply for the CEBA.

The CEBA is an interest-free loan of $40,000 for qualifying businesses. Up to $10,000 of that amount will be eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.

Financial institutions are set to begin accepting online enrollments the week of April 6, 2020. 

Banks such as RBC and CIBC have reached out to their customers, letting them know they will be alerted when the process is live.

For more information about the loan including eligibility and how to enroll and prepare:

• Check your emails to see if you received an announcement from your financial institution and; 

• Learn more about the Business Credit Availability Program (BCAP) on the government website. 

Canada Emergency Wage Subsidy (CEWS)

The federal government’s newly revised 75% Canada Emergency Wage Subsidy (CEWS) now has a price tag attached to it: $71 billion.

Today, on Wednesday, April 1, 2020, the following details (that can also be found on the Government of Canada website) were announced for the proposed CEWS program:

• The Canada Emergency Wage Subsidy will apply at a rate of 75% of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.

• Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, will be able to access the subsidy.

• Eligible employers will include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.

• For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.

• An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.

• The CEWS will not replace the previously announced 10% temporary wage subsidy. For employers that are eligible for both subsidies for a period, any benefit from the 10% wage subsidy an employer receives is expected to reduce the amount available to that employer from the CEWS. 

• Employees will not be able to receive both the CEWS and the Canada Emergency Response Benefit (CERB). 

Finance Minister Bill Morneau stated that businesses will be able to apply for the wage subsidy through an online portal soon to be available through the Canada Revenue Agency website.

For now, Morneau urges companies to rehire employees quickly while relying on extra credit to bridge the gap until they receive the CEWS - since businesses will need to show that they are paying their employees in order to be eligible for the subsidy.

More details on how to apply for the program are still to come. See this government backgrounder for more information on the sage subsidy. 

Small Business is Concerned

The Canadian Federation of Independent Business says that there are “several design features and unanswered questions that may prevent the (wage subsidy) program from meeting its intended goal of reducing layoffs.”

Many new and seasonal businesses will find it challenging to prove a 30% decline figure. And for some businesses with tight profit margins, even a very small drop in sales will require significant layoffs to lower costs. 

It's also concerning that even when the application portal is up and running, Canadian businesses will have to wait approximately 6 weeks to receive money from the new federal wage subsidy program.

Ontario

Support Development of Essential Supplies & Equipment through New Ontario Together Fund

A new $50 million Ontario Together Fund is being launched to stop the spread of COVID-19. The Fund will help businesses across the province stay in business while adjusting their operations to manufacture essential medical supplies and equipment, including gowns, coveralls, masks, face shields, testing equipment and ventilators.

The fund will be available to companies and organizations across the province.  Businesses can submit proposals to the government through the Ontario Together web portal.

Alberta

Expanded Child Care for Essential Workers

Child care is now available to anyone who works in the critical areas that the government outlines as essential. Parents who qualify for the subsidy will receive it and centres will charge their typical rate, within reason. Parents who are eligible should only access this childcare if it is the only way they will be able to go to their work in a core service sector. Child care centres will be financially compensated for reopened spaces that are not filled.

Learn more about the expanded child care subsidy.

British Columbia

New guidance for Preventing Exposure to COVID-19 in the Workplace

The British Columbia Workers Compensation Board has issued new guidelines for preventing exposure to COVID-19 at workplaces in British Columbia.

Download the Preventing exposure to COVID-19 in the workplace: A guide for employers.