Eagle-eyed readers may have noticed that this year’s Benefits Canada Healthcare Survey title “A Perfect Storm” looks oddly familiar.

That’s right, it’s the same title we used last year when describing the many challenges facing Plan Sponsors! Blendable’s ahead of the game once again.

Our Adam Hussey tuned in for this year’s survey launch, expecting to hear more about how Plan Sponsors should heed the winds of change facing Group Benefits. Instead, he realized it’s the insurance companies who are missing the warning signs.

Do small businesses matter?

Benefits Canada approached 653 Plan Sponsors and 1,001 Plan Members to complete the survey, creating what they consider is a high rate of confidence in the answers.

However, the median size of business in the survey was 400 employees. Only 23% of those businesses surveyed had less than 50 employees, while small businesses (with less than 50 employees) actually make up 95% of Canadian businesses.

It means that while the survey data is interesting, it may not accurately reflect the challenges, priorities, and opinions of many business owners or their teams.

HSA? Do you mean flexplan?

During the presentation Adam heard great audience questions about the place Health Spending Accounts (HSAs) have in a benefits plan (hooray!). The panel routinely turned these questions into discussions about flexplans as the solution for creating flexibility and equity for a diverse workforce.

However, with flexplans Plan Members are still handcuffed by categories, limits, and maximums. They may have choice when initially selecting benefits, but as life happens these plans can’t adapt. An HSA, on the other hand, leaves Plan Members free to reimburse expenses as they arise – the only limit is what’s in the account.

Cost control is still king

The survey also references cost control as a key concern for Plan Sponsors. It shouldn’t surprise us that 80% of Plan Sponsors felt it’s challenging to provide benefits in today’s economic environment. Overall costs, drug plan costs, and inflation were the main contributors to this feeling.

Once again, where costs for traditional plan designs (and yes, even flexplans) are premium-based and increase with usage (and insurer profit margins) an HSA can control costs for Plan Sponsors.

Why are we not talking about simplified budgeting (Costs = Contributions + Admin Fees) and radical transparency (1 fee, that’s it) in group benefits?

What storm? And where do we go from here?

There’s a disconnect between the survey title and what Adam heard in the presentation. If you listen to the insurance companies, it sounds like Plan Sponsors should stay the course. Just make minor changes, tweak your benefits, basically the status quo.

But if you ask us, Plan Sponsors, especially those with less than 50 Plan Members, should be looking in a different direction. There are options that are a better fit, provide more flexibility, and control costs. Just ask us!

That’s a wrap for now, but you can bet we’ll keep referencing this new data as we carry on our mission to uncomplicate Group Benefits.