1. LOOKING BACK…focused on the future
CIA Annual Meeting
LOOKING BACK…focused on the future

2. Moderator: Ron Hoskins
Speakers:
Teresa Negrich
Brian Kassner
Louis Bernatchez

3. Hot topics from a consultant and employer point of view
Price tags vs premiums
HCSA
New coverages

4. Flexible benefits – Does it work?
Yes it works!
Large employers with plans in place for many years
You need:
Objectives that makes sense
The right pricing
Good communication

5. Price tags vs premiums
Why they are different
Problem it causes in Quebec
Advantages to the insurance company

6. Why they are different?
Price tag is the cost charged to the employee
The premiums are the cost charged by the insurance company
They are different because of antiselection
A price tag that is far from its perceived value will increase antiselection

7. Problem it causes in Québec
Taxable benefits different than price tag
Added complexity in communication

8. Advantages to the insurance company
Enough money collected to cover claims
Less variations based on employee selection
Less time trying to find out the actual cost of an option
Plan will remain in a heath position a longer time

9. Price tags vs premiums – An example
Plan A (80%)
Plan B (90%)
Price tag
$ 200
$ 850
Premium
Assumed selection 50
Total $52,500
Actual selection 60 40
Actual cost
$ 300
$ 1,000
∆ in cost
$ 100
$ 150
Total $58,000

10. Price tags vs premiums – A better example
Plan A (80%)
Plan B (90%)
Price tag
$ 450
$ 600
Premium
$ 400
$ 700
Assumed selection 50
Total $55,000
Actual selection 60 40
Actual cost
$ 300
$ 1,000
∆ in cost
$ 0
$ 250
Total $58,000

11. HCSA
Growing demand but not without pain
Employer’s demand to verify amounts
Privacy act

12. Growing demand but not without pain
Requires a good administration system from the employer
Must be well communicated to employees
Taxable benefit in Quebec
High $ amount for this account vs insurance coverage

13. New coverages we are seeing
Best Doctors CI

14. Problems associated with the new coverages
Misunderstanding of the coverage
Tougher medical evidence or pre-ex conditions
Blaming employers on the choice of benefits