Many employers aren't ready for the shift from public to private health care
Nearly three-quarters of Canadian companies think governments should prohibit the unintended transfer of costs to individual or group insurance plans in the event that private health insurance for medical services currently covered by public plans becomes available, according to a new survey.
“Dramatic reform is underway in the way some provinces are thinking about health-care delivery. Sponsors of employee benefit plans must prepare to integrate into these new provincial health-care systems,” said Brian Lindenberg, principal and leader of the health and benefits professional group at Mercer Human Resource Consulting, which conducted the survey.
“Employers should examine the terms of their benefit plans and policies to avoid any unintended cost transfer that might result from some provincial government proposals.”
Sixty per cent of the 180 Canadian companies surveyed haven't reviewed their contractual obligations in light of new private insurance options, but intend to do so in the near future. Only 11 per cent of companies surveyed have done a full audit and are protected against unintended cost-shifting while seven per cent are making changes to protect plans from unintended cost-shifting from the provinces.
“It will take some time before the full implications of health-care reform will be known,” said Lindenberg. “However, it is likely that there will be both direct and indirect shifting of costs from the public system to the private sector.”
In Quebec, one outcome of the Chaouli case is that the government will mandate maximum wait times for some specific procedures, such as knee replacement surgery, and if the wait exceeds this period, the patient would have his surgery performed outside the Quebec public system. The government will permit private insurance coverage for some of these procedures.
The survey found that if insurers offer private insurance, 39 per cent of companies would consider including private insurance coverage as an employee-pay-all option and 14 per cent would consider including such coverage as a cost-shared option.
“While employers are concerned about the escalating costs of providing group health insurance, it is possible that private insurance may improve patient access to health care. This could be a useful tool to attract and retain employees in the provinces where reforms occur,” added Lindenberg.
“Companies are trying to hire and keep existing staff in many competitive industries and this may provide employers with the opportunity to differentiate their organization from another in the ongoing war for talent.”
“Dramatic reform is underway in the way some provinces are thinking about health-care delivery. Sponsors of employee benefit plans must prepare to integrate into these new provincial health-care systems,” said Brian Lindenberg, principal and leader of the health and benefits professional group at Mercer Human Resource Consulting, which conducted the survey.
“Employers should examine the terms of their benefit plans and policies to avoid any unintended cost transfer that might result from some provincial government proposals.”
Sixty per cent of the 180 Canadian companies surveyed haven't reviewed their contractual obligations in light of new private insurance options, but intend to do so in the near future. Only 11 per cent of companies surveyed have done a full audit and are protected against unintended cost-shifting while seven per cent are making changes to protect plans from unintended cost-shifting from the provinces.
“It will take some time before the full implications of health-care reform will be known,” said Lindenberg. “However, it is likely that there will be both direct and indirect shifting of costs from the public system to the private sector.”
In Quebec, one outcome of the Chaouli case is that the government will mandate maximum wait times for some specific procedures, such as knee replacement surgery, and if the wait exceeds this period, the patient would have his surgery performed outside the Quebec public system. The government will permit private insurance coverage for some of these procedures.
The survey found that if insurers offer private insurance, 39 per cent of companies would consider including private insurance coverage as an employee-pay-all option and 14 per cent would consider including such coverage as a cost-shared option.
“While employers are concerned about the escalating costs of providing group health insurance, it is possible that private insurance may improve patient access to health care. This could be a useful tool to attract and retain employees in the provinces where reforms occur,” added Lindenberg.
“Companies are trying to hire and keep existing staff in many competitive industries and this may provide employers with the opportunity to differentiate their organization from another in the ongoing war for talent.”
