Defined contribution benefits solution (Guest commentary)

Health-spending accounts offer alternative way to provide health, dental benefits
By Scott Maclagan
|Canadian HR Reporter|Last Updated: 06/18/2009

Health and dental benefit cost-containment in these financially troubled times is of paramount importance to every employer, regardless of size or industry.

The traditional group insurance plan — incorporating annual compound premium rates — is becoming unaffordable for many employers. There needs to be a fundamental shift to how these benefits are provided.

Employees have to become part of the solution, rather than the cause of increasing claim costs. Few employees have any sense of the true cost of the benefits and many look at benefits as an entitlement, rather than a part of total compensation. Why should an employer pay two-and-a-half times the premium cost for an employee with a family versus a single employee? Where is the internal equity in the current cost structure?