Health benefit costs have doubled since 1990: report

Costs now account for six per cent of payroll, show no signs of slowing down, says Conference Board of Canada
||Last Updated: 03/28/2005

Health benefit costs have doubled since 1990 and show no signs of slowing down, according to a Conference Board of Canada report.

Costs rose from 3.2 per cent of payroll in 1990 to more than six per cent in 2003, according to “Beyond Band-Aid Solutions: Managing Organizations’ Health Benefit Costs.” By 2007, some estimates put that number as high as eight per cent of payroll.

“The upward trend in health benefit costs is a growing concern to employers across the country,” said Judith MacBride-King, director of human resource management research at the Conference Board of Canada. “Many organizations are adopting innovative solutions that include sharing costs with employees, redesigning their plans and supporting the health and wellness of their workforce. Despite their focus on controlling costs, employers are well aware that health benefits are a critical factor in recruiting and retaining human talent.”