The 2015 Sanofi Canada Healthcare Survey reveals that virtually all health plan members are positive about their current health plans but almost two-thirds of employees responding to the survey would like the opportunity to spend their benefit dollars on programs that are more tailored to the needs of their family.
Ninety-four percent of plan members are positive when describing the overall quality of their health benefits, with 58% describing them as very good or excellent. This result has been consistent since the Sanofi survey first posed the question in 2006.
Similarly, 93% of respondents believe their health benefit plan meets their needs and 56% of this group judge that it does so extremely or very well. Health benefits also continue to be an effective means to attract and retain employees, as 77% of respondents say they would not move to a job that did not include health benefits (rising to 80% in Manitoba/Saskatchewan and decreasing to 66% in Quebec).
When asked which statement most closely describes their plan, 77% of plan members selected “a traditional plan that defines what is covered and the levels of coverage” and 23% selected “a ‘flex’ plan that allows them to choose levels of coverage.” When then asked which type of plan they prefer, 64% of members opted for the less-prevalent flex plan and 36% opted for the traditional plan.
A separate survey of plan sponsors indicates that 32% offer flex plans. Larger employers (more than 500 employees) are more likely to do so at 50%, followed by mid-size (34%, 101–500 employees) and smaller employers (18%, up to 100 employees).
Plan members, meanwhile, are consistent no matter the size of their organization. Approximately two-thirds said they prefer a flex plan over a traditional plan.
“Plan members see great value in having a health benefit plan, but they also want to have a voice in decisions around what is covered. That’s a huge challenge for plan sponsors, but perhaps this is an opportunity and the time is right to make change,” says Susan Belmore-Vermes, director group benefits solutions, at Health Association Nova Scotia. “The question is, how do we as an industry create a strategy to redesign plans that are decades old for many of us?”
Plan members’ high satisfaction levels can also contribute toward a sense of complacency in benefits management, warn members of the advisory board. As a result, change is generally a response to “burning platforms” rather than evolving needs.
“Plan members are telling us there’s a desire for flexibility and personalization, and the timing is right because we’re seeing greater differences between the generations and we have this great ‘bulge’ of baby boomers in the workforce right now. The ‘one-size-fits-all’ approach of traditional plans doesn’t really suit this reality,” says Marilee Mark, vice-president, market development, at Sun Life Financial.
As well, plan members’ changing needs do not necessarily point to added costs for the employer. “For example, there’s a growing interest in getting access to resources and education,” says Mark.
Board members also point to a potential sleeping giant: chronic disease. “Chronic disease in the workplace is very prevalent and employers are not paying attention to it. We can’t wait for it to become a burning platform,” notes Carol Craig, director of human resources, benefits and pensions at TELUS.
When plan members were presented with seven possible new benefit offerings, they said they would most likely use onsite screening with a healthcare professional to determine personal risks for chronic diseases (45%) followed by on-site immunization for infectious diseases (40%) and coverage for fitness/yoga classes (34%).
Plan members also reported using paramedical services (i.e. massage therapy, physiotherapy, chiropractic services) an average of 7.3 times in the last year, the second highest rate of utilization after prescription medicine (9.5 times).
After two weeks of vacation in lovely (except for the mosquitoes) Muskoka, I’m back. And so are all of our favourite personal finance bloggers with lots of interesting material. In particular, we welcome back Kerry K. Taylor (aka Squawkfox) who has been on sick leave.
In her classic comeback post Kerry questions whether Dollarama’s $3 HDTV antenna is worth it. The bottom line is that she was able to receive as many channels on the $3 antenna as on the $67 model she bought at Future Shop. Her readers also have made interesting comments about what worked and what didn’t in their part of the country when they ditched cable or satellite TV.
Alan Whitton (The Big Cajun Man) gives us three financial rules of thumb to live by: Spend less than you make; don’t confuse spending less with saving money if you are buying an item you don’t really need; and lifestyle creep is dangerous and an excuse to build up debt.
Sean Cooper wrote about how he reached $500,000 in net worth by age 29 in this post on Million Dollar Journey. He worked at multiple jobs, lived with his parents until he had a significant down payment on a house and rented out the top floor of his home while living in the basement apartment.
Mark Seed at My Own Advisor joins the legion of Canadians who are opting for VOIP telephone services instead of Bell or Rogers. For $4.95/month he got to keep his home phone number using Fongo Home Phone and after several months he states categorically that it was the right decision.
And last but not least, a free e:book Understanding Unretirement written by Today’s Economy blogger and Sun Life Financial Assistant Vice-President, Market Insights Kevin Press draws on six years of company research to explore why retirement in today’s economy is different and harder to achieve but could be better than ever before.
Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.
Today we’re talking to Kevin Press as part of our continuing 2014 series of SavewithSPP.com podcast interviews with personal finance bloggers. Kevin is the Assistant Vice-President of Marketing Insights at Sun Life Financial in Toronto.
His blog, Today’s Economy has appeared on Sun Life’s Brighter Life platform since 2009. Kevin started his career in 1998 at Rogers Healthcare and Financial Publishing; where he had several editorial and marketing positions, including over 3 years as editor of Benefits Canada. He has also volunteered for the Canadian Pension & Benefits Institute for almost 15 years in many roles, including as National Chair.
Thank you so much for joining me today, Kevin.
Sheryl, thanks so much for the invitation. It’s good to talk to you again.
Q. A blog is a major time commitment. How often do you blog?
A. These days, it’s just once a week. I’m up every Wednesday but over the years it’s been sometimes twice a week, sometimes even three times a week in the early days.
Q.Why did you decide to start blogging in addition to your more-than-full time job and your volunteer activities?
A. I love my job. I’m so proud of the team that I lead. But, the truth is – and I think you can relate to this – I don’t think I ever stopped being a journalist. I was asked to launch the Today’s Economy blog back in early 2009, right in the heart of the financial crisis, and that was really a very easy decision.
Q.I can understand that. You can take the man out of journalism, but you can’t take journalism out of the man! What are some of the topics you cover in your blog?
A. As I say, my chief goal is to help readers understand what is happening in the global economy, and here in Canada. So, in that sense, Today’s Economy is not a personal finance blog in the way that some of the others are. I certainly post a lot on personal finance, but primarily what I’m trying to do is focus on explaining key economic trends to a broad audience.
The Eurozone has been an amazing story to follow, and, more recently, emerging markets – what’s happening there now as the U.S. government slows down its quantitative-easing program. That’s a fascinating story. If I’ve helped Canadians understand these big stories, even just a little bit, then I think the blog is a success.
Q.Since you’ve started blogging, the Brighter Life platform has been expanded to include a number of other blogs covering a broad range of subjects. Tell me a little bit about a couple of the other bloggers and what they write about.
A. One of my favorites is Dave Dineen. He writes a blog called ‘Dave’s Retirement Journey’. Dave was actually a member of my team years ago, before he decided to take early retirement I think he’s helped a lot of Canadians make the transition to retirement successfully – just writing in the first-person about his experiences, making that transition himself.
Anna Sharratt does really good work for us on the health beat. She has a blog called Living Well. Gerald McGroarty writes about work issues, but I have to tell you, he’s written a piece recently about an extraordinary story. Last year, Gerald experienced a sudden cardiac arrest, and his wife, who is a registered nurse, saved his life.
Q. I’m going to have to look for that one.
A. It’s called ‘Could You Save a Life?’
Q.How many hits do you usually get when you or the other bloggers post?
A. It’s a really wide range. I’ve written posts that get no more than a couple of hundred visits and others have got well into the six-figures. I can tell you that after years of being a journalist, this blog reaches a larger audience by far than I’ve ever been able to connect with before.
Q.So what have some of your most popular blogs been?
A. The economic forecasts attract a lot of readers. Any of the retirement research we do like our Unretirement Index always scores well. Specifically, what we expected to learn from that research was that many Canadians will work past the traditional retirement age of 65 for lifestyle reasons. But because what we’ve actually ended up tracking are the evolving views of Canadians post-financial crisis it’s turned into even more of an interesting story.
Q.Poll after poll, particularly during RRSP season reveals that Canadians are not saving enough and that they’re worried about how they will live in retirement. Why do you think so many people find managing their finances so difficult?
A. We really believe that the way we can help Canadians most is empower them to act. So research shows, time and again, that adults want to do the right thing – they recognize that lifetime financial security is achievable. It’s just hard for them to get there, it’s hard for them to start. So our goal is to educate.
Q. You published 20 Smart Money Moves at the beginning of the year and you suggest that people maximize their employee benefits. Can you give me one or two examples where you think Canadians are really leaving money on the table?
A. First, a lot of employers sponsor capital accumulation plans – or defined contribution plans as they’re sometimes called – and match employee contributions up to certain limit. So, lesson number one – if you’re lucky enough to have one of those plans, take full advantage.
Lesson number 2 is if your employer offers a group registered retirement savings plan, do what I did. Move your individual RRSP funds over to the group plan – you save a lot in terms of management expense ratios.
The difference between the group environment versus individual RRSPs is quite dramatic. You still realize all the same benefits from your registered savings and you’ll get a better return in the long run.
Q.Interesting. I know the Saskatchewan Pension Plan has employer-workplace programs, and they also offer similar advantages.
Employers and insurance companies spend a lot of time and money communicating with benefit programs – why do you think so many employees are still not getting the message?
A. I think that a lot of folks struggle with the technical nature of the subject, and it really is incumbent upon financial institutions to keep working at finding ways to present information, in the most understandable fashion possible.
Q.If you had one piece of advice to help Canadians better manage their finances, what would it be?
A. One of the best things I ever did was take the Canadian Securities Course. The textbook alone is worth the price of the program. People who are interested in working in the industry very often take that as an early-stage educational opportunity. But what I took away from it was so much more. It’s just such a valuable learning experience. I think it will help you to understand your finances in a very meaningful way.
Q. The federal government is not interested in expanding CPP. A few provinces, Saskatchewan included, are rolling out the new pooled registered pension plans. Do you think PRPPs will be the carrot that helps more Canadians to save what they need for retirement?
A. I’m a big fan of PRPPs. I think they have that potential. The fundamental idea behind the PRPP is that too few Canadians (43%) have workplace pension plans. But even that number is misleading because so many of those folks are public sector workers. In the private sector, fewer than a quarter of workers work for an organization that sponsors a plan. So, the idea is that PRPP can fill that gap. And I’m very hopeful about their ability to improve the pension system in this country.
Q.Youth unemployment is a huge issue. Your Unretirement Index shows that older workers are working longer. Are seniors clogging up the pipeline? How do we get more young people into good jobs? How do we give them a good start?
A. This is such a tough story. I have to say this one of the stories, since I started blogging, that bothered me the most. The unemployment rate among young adults in this country has been stuck at about twice the national average since before the financial crisis.
But of course, this is not a new story. Youth unemployment hit 17.2 percent in the ’92 recession. It hit 19.2 percent in 1983. What’s interesting and what was a surprise to me is that there actually is no evidence to support the notion that young people can’t find work because older workers are retiring later.
There are lot of good ideas out there about how to help young Canadians. I think the best relate to the choices that young people make in terms of their careers and their education.
There are certain areas of the economy that are more dynamic. There are certain skills that are more marketable. And I think if young people are as strategic as possible, and as parents, I think if we can help our kids be as strategic as possible in making education and career decisions, then they will be well positioned to transition more easily to the workforce.
Q. So, one of your New Year’s resolutions was to write a Today’s Economy e-book. How’s that going for you?
A. Oh, I love you holding my feet to the fire. What I’ve done is I’ve put together a collection of posts that are not quite so time-sensitive, that still stand up over time.
A lot of what I write is about what’s happening right now and probably won’t have relevance a year, two years down the road. I think that we can help to tell the story of what’s been happening in the economy since 2008 and I’m targeting the second half of the year to pull that together.
Q.You’re ahead of me on that one. Thank you very much, Kevin. It was a pleasure to talk to you today.
A. So good to talk to you again, Sheryl. Thanks for talking to me today.
This is an edited transcript of the podcast you can listen to by clicking on the graphic under the picture above. If you don’t already follow BrighterLife.ca, you can find it here and subscribe to receive blog posts by email as soon as they’re available.
With RRSP season in full swing, you may be reviewing your budget projections to ensure you are saving enough for retirement. But are you factoring in the future cost of health care?
In Planning for health care in retirement, a guest post on Retire Happy, Sun Life Financial AVP Kevin Press suggests that some combination of disability insurance, critical illness insurance and long-term care insurance can help fill the post-retirement health care gap.
Finally, if you’ve decided that this is the year you will finally buy a smartphone or trade your old one in for a newer model, on Engadget, Tom Stevens explains and evaluates the new features found in the BB10 which was released with great hoopla this week.
Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Send us an email with the information to firstname.lastname@example.org and your name will be entered in a quarterly draw for a gift card.