Employers can’t afford growing health costs

Government urged to introduce system for individuals to prefund their health care in retirement.
By David Brown
|Canadian HR Reporter|Last Updated: 02/23/2002

An aging population, new and more expensive drugs and the continued push by governments to cut spending on health care through delisting will soon force employers to fundamentally change their health-care benefits, experts warn.

Now is the time to introduce ways for employers to be less responsible for the costs of health care for retired employees while still ensuring those individuals get all of the care they need, said Madeleine Gaul, a senior benefits consultant with William M. Mercer.

Once again this year, employers can expect health-care costs to increase by at least 15 per cent. Depending on where employees live and what the plan covers, it could be more.