In my last two posts, I applauded my clients (like you) who trust me enough to help them keep their families, their employees, and their employees families protected by putting comprehensive financial plans in place for the future.
In this post, I want to applaud the Canadian Life and Health Insurance industry. Why? Because they have taken a major leap forward in protecting the health and well-being of Canadian employers, employees, and their families – a uniquely Canadian approach we should be proud of.
As more effective drugs for chronic conditions are developed, the cost of those drugs increases. For patients, this means better treatment – but with a higher price tag. And as government-paid drug coverage decreases, employee group coverage needs to increase in order to meet the needs (and increased insurance claims) of workers and their families.
Until recently, this meant many employers were faced with a difficult decision. They either had to restrict coverage to control costs or, in extreme cases, cut drug coverage altogether. The Canadian Life and Health Insurance Association (CLHIA) decided to take matters into their own hands to prevent this from happening.
In an unprecedented move, the CLHIA announced an industry-wide pooling agreement to collectively protect fully insured private drug plans from the full financial impact of high cost drugs. Astoundingly, 100% of insurance companies got on board with the plan – a level of participation unheard of in any industry.
This coming together to pool resources is, in my opinion, a very Canadian approach. It means that for large claims, no one employer (or insurance company) has to bear the brunt – all of the insurance companies pitch in to cover the claim. It means that companies, particularly small and medium-sized companies, can keep their plans in place. And it means that employees and their families will continue to see their claims paid.
The fact that the CLHIA came together to protect the integrity of benefit plans against future risk makes me proud. I am proud to be in an industry that is working from these principles, that actively supports employees, employers, and each other.
And I am very proud (and thankful) to work with people like you!