Risk & Business Magazine Jones DesLauriers Insurance Magazine Summer 2018 | Page 26

GOVERNMENT POLICY CHANGES Is Your Benefit Plan Ready For Government Policy Changes? I n a constantly changing world, perhaps nothing changes quite as much, or as often, as government policies. The insurance industry’s advisors are adapting to meet these challenges. Some legal changes are on the horizon that will impact the insurance industry and its clients. MEDICAL MARIJUANA Recreational use of marijuana is expected to be legalised in 2018. The exposure and attention to this issue has heightened the interest in coverage for medical marijuana under private health plans. For a number of years, medical marijuana has been payable in a group plan through a healthcare spend- ing account. Because medical marijuana does not have a DIN number, it is expected that carriers will provide coverage under the medical-services-and-supplies provision, to a maximum of between $1,000 and $4,000 annually. Coverage will be for a limited set of illnesses: multiple sclerosis, rheumatoid arthritis, HIV/AIDS, cancer, and palliative care. This will have an impact on healthcare costs, which are already under pressure. We have some concerns: Should companies make medical marijuana eligible to employees under the company health plan, and what is the cost of doing so? Will the carrier guidelines governing eligible medical marijuana claims be clear, and even flexible, for Administrative Services Only plans? Do organisations have HR policies on what is acceptable use of recreational and/or medicinal marijuana use in the workplace? What are the risks associated with workplace safety? PARENTAL LEAVE Prior to December 2017, new families had a single option regarding maternity coverage. Mothers were eligible, after a 26 two-week waiting period, to fifteen weeks of maternity leave followed by thirty-five weeks of parental leave. Parental leave could be shared with the other parent. Families now have the choice between standard parental benefits—twelve months as per above—or extended parental benefits which extend coverage to eighteen months (one-week waiting period, fifteen weeks of maternity leave, and sixty-one weeks of parental leave). Under the standard parental program, the parent(s) receive 55 percent of their income to the EI maximum ($547 in 2018). Under the extended parental program, the parent(s) receive 33 percent of their income to a maximum of $328 in 2018. What are the impacts? Is the extended parental program truly an option for lower income families? If the employer has a top-up policy, how is it written? Is the employer required to top up benefits from 33 percent (previously, it was 55 percent)? That could be a significant cost to the employer. Employers must budget to cover the extended parental leave. PAID TIME OFF In November 2017, the Ontario government passed Bill 148, the Fair Workplaces, Better Jobs Act, 2017. This bill did more than just increase the minimum wage. As of January 2018, employees with five years service with the same employer are eligible for three weeks of unpaid vacation and 6 percent vacation pay. Also, all employers—regardless of the size of the company—must allow employees to take personal emergency leave (PEL). Employees are entitled to ten PEL days per year, which includes two paid PEL days after working for just one week. A doctor’s note is not required, but other reasonable evidence can be requested. What is the impact? BY: BLAIR MACINTYRE, SENIOR CONSULTANT, JDIMI CONSULTING Have you reviewed current sickness, Short Term Disability (STD) and other salary continuance policies? Do PEL days qualify as sick days? DRUG BENEFITS AND DENTAL PLANS In January 2018, Ontario saw the enactment of OHIP+. All Ontario residents 24 years old or younger receive all prescriptions listed on the Ontario Drug Benefit formulary (ODB) for free. This represents approximately 4,400 medications. The Ontario government is first payor for these medications; private plans will be responsible for drugs prescribed outside of the ODB. Depending on a program’s demographics, this policy could generate savings of up to 4 percent. In the latest Ontario budget, the Liberal government has promised to expand the OHIP+ program to include residents age 65 and over. They have also promised to provide dental care to all Ontario residents who do not have coverage. We have some concerns: Will the current iteration of OHIP+ be available in years to come? Will the expanded version of OHIP+ be offered regardless of the results of the upcoming provincial election? Do cash-strapped employers terminate dental plans for the proposed provincial plan? Organisations need to partner with an advisor to help them navigate through these and many other policy changes to mitigate risk with the least amount of impact on costs and productivity. Contact Blair at [email protected] to learn more. + Blair MacIntyre is a Senior Consultant with JDIMI Consulting. He has 25 years of Group Insurance experience. Prior to joining JDIMI Consulting, he worked with a national Insurance carrier as a Regional VP. Blair is a graduate of the University of Western Canada.