What STATUTORY coverage to provide?
A) Statutory:
- CPP (Canadian Pension Plan)
- EI (Employment Insurance)
- WCB (Workers Compensation Board)
- Paid Time Off
What NON-STATUTORY coverage to provide?
B) Non-Statutory:
- Mandatory Group Life
(flat amount or time earnings) - AD&D (Accidental Death and Dismemberment Insurance)
- Weekly Indemnity (WI), also known as Short-Term Disability (STD)
- Long-Term Disability (LTD)
- Medical Service Plan (MSP)
- Dental Care
- Extended Health
(including Vision Care and Drug Coverage) - Paid Time Off
(Non-statutory) - RRSP (Registered Retirement Saving Plan) / Pension Contributions
- EAP (Employee Assistance Program)
- HCSA (Health Care Spending Account)
- Critical Illness Insurance
- Non-Insurance benefits / Perquisites
Who pays for the coverage?
Premium coverages:
- Employee
- Employer
- Split
(tax implications - especially WI / LTD)
Contributory, Non-Contributory, Employee paid
Coinsurance for health, dental, and other benefits:
- % of eligible expense above deductible that is paid by benefits insurance plan - (e.g.: 80% coinsurance for drug costs)
- Deductibles: inflation and incentivesWhat are the types of plan design?
- Fixed: One size plan fits all
- Flex Modular
- Flex Core Plus Options
- Flex Cafeteria Design
- Flex Health Care Spending Accounts
When and why were the FLEX PLANS designed?
When: They were designed in late 70s / early 80s
Why: In response to workplace diversity, once that different employees have different needs
What does the Flex Plan Modular offer?
- It offers either a plan A, B, or C
- Administration is relatively simple for this plan
- It limits employee’s choice
- Employees need to pay something if they want a “better” option or want to add something to this plan
What does the Flex Core Plus options offer?
- It offers a common core benefits such as LTD, WI, Life, AD&D, MSP, Statutory Benefits, basic Extended Health, and Dental
- It offers more choice, but then administration becomes more complex (maybe MUCH more such as Credit System, HSCA, Cafeteria Style)
- Employees may pay something for “better” options
What does the Flex Cafeteria Style Plan offer?
- The Statutory ones (which are mandatory for any Benefit Plan design) plus employee chooses whatever he/she wants to add according to his/her needs and pay for that difference/customization
What does the Flex Health Care Spending Account offer?
- It pays attention to tax treatment when establishing plan
- Consider: ASO (Administrative Services Only)
Describe the Flex Plan Design process.
1) Establish objectives
2) Status quo? Design new plan?
3) Test - focus groups
4) Adjustments
5) Implementation:
- Communication for roll out
- Administration
- Election periods / triggers
What is Employee Assistance Program?
- Its purpose is to identify and resolve personal problems
- It can be defined as a employer-sponsored benefit program designed to assist employees and with the identification and resolution of personal issues which may be impacting productivity
What are the EAP Services provide?
- Substance abuse
- Mental health
- Grief counseling
- Stress reduction
- Anger management
- Legal problems
- Credit counselling
- Health maintenance consultation
What is the history of EAP?
- Substance abuse programs:
* 1940's - Eastman Kodak, duPont * 1947 - Bell Canada - Expanded programs (new needs):
* 1960's - workforce diversification * 1970's - economic stability * 1980's - technological change - globalization
Some statistics about this issue…
- Annual costs of Mental Health:
“In any given year, ONE in FIVE people in Canada experiences a mental health problem or illness, with a cost to the economy well in excess to $50 billion. This represents 2.8% of 2011 GDP.”
Retrieved from [Mental Health Commission of Canada]
- Annual costs os Substance Abuse:
Indirect costs of productivity losses $24.3 (2002)
Data retrieved from [Canadian Centre on Substance Abuse - CCSA]
What does Regulatory Framework consist?
- Privacy Legislation:
- Safeguards client information in records or gathered in counselling sessions
- Advise what info being collected as well as its purpose and the time it will be kept on file
- Individual written consent for release of info
What are the potential problems with Regulatory Framework?
- Defamation of character
- Discrimination
- Negligence
- Breach of Contract
What are the potential Design Issues?
- Objectives of EAP
- Definition of eligible employees
- Types of services offered
- Qualifications of EAP practitioners
- Roles of the different parties
- Methods of access to the program
- Evaluation and/or audit procedures
- Accessibility
- Timeless
- Confidentiality
- Quality of service
- Communication support
- Utilization reports
What are the potential Operational Issues?
- Culture of concern
* Assistance not a personal weakness
* No disciplinary action
* Confidentiality - Supervisory training
- Early intervention
- Choosing an EAP
- Cost of EAP program
- In-house vs. External program
What are the potential External Operational benefits and issues of EAPs?
- Contracted services:
Benefits
* Efficient start-up
* Confidential service
* Evaluation and accountabilityIssues
* Unfamiliar with workplace/issues
* Problem of follow-upWhat is expected from the future of EAPs?
- Newer services
* Eldercare, retirement counselling - New delivery systems
* Internet information site
* Online tutorials, exercises, counselling
* Email therapy - New educational approaches
* Role situations, workshops, seminars
* Goal to educate about problems, self-diagnosis - Work-life committees
- Small business services
