What’s New in Group Benefits
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Pharmacy
British Columbia Budget 2018
On February 20th, Carole James, Minister of Finance for British Columbia, announced the 2018 budget for the province.
Here are a few highlights that may affect Manulife Group Benefits. The BC government will:
- Eliminate Medical Services Plan (MSP) premiums by January 1, 2020
- Eliminating MSP premiums means that families will save up to $1,800 per year, and individuals will save up to $900 per year.
- BC is the only province where residents pay this fee.
- Invest $105 million in Fair PharmaCare to expand coverage for 240,000 families starting January 1, 2019
- Fair Pharmacare deductibles will be reduced for families with a household net income between $30,000 and $45,000
- Fair Pharmacare deductibles will be eliminated for families with a household net income between $15,000 and $30,000
- Introduce an employer health tax to help fund the elimination of MPS premiums
- Businesses with payrolls over $1.5 million will pay the full rate of 1.95%
- Businesses with payrolls between $500,000 and $1.5 million will benefit from a reduced rate
- Businesses with payrolls of less than $500,000 will not pay any employer health tax
Prices for almost 70 generic drugs dropping 25-40%
On April 1, prices for almost 70 of the most common generic drugs will drop 25-40%. These drugs include those used to treat high blood pressure, high cholesterol and depression – and are used collectively by millions of Canadians.
The discounts are based on an agreement between the pan-Canadian Pharmaceutical Alliance (pCPA) – which represents provinces, territories and federal government and the Canadian Generic Pharmaceutical Association (CGPA). Under the new agreement, provincial and territorial governments agreed not to pursue tendering for participating drug plans over the five-year term.
Discounts apply to both public and private plans
Canadians taking any of these drugs stand to save money – whether it’s through a public drug plan, an employee benefit plan or when they foot the cost themselves.
With the reduction in generic drug costs, private drug plans with generic substitution can expect to see greater savings for both the plan sponsor and their members. Plans with generic substitution reimburse based on the lowest priced generic drug.
British Columbia (BC) Medical Services Plan premiums dropping January 1, 2018
As of January 1, 2018, the BC Medical Services Plan (MSP) premiums will drop by 50% for all British Columbians. The BC government is hoping to eliminate these premiums over the next four years.
Currently, under the BC Medicare Protection Act, all residents of BC must enrol in the MSP. Once enrolled, they can pay their MSP premiums through:
- self-administered accounts or,
- through their employer under a MSP Group Plan in either one of the following ways:
- The employer deducts premiums from the employees wages and remits them to the government.
- The employer pays premiums on behalf of their employees as a taxable benefit.
For more information on the changes to the MSP premiums, visit the BC governement MSP site.
2018 changes to Maximum Insurable Earnings, Employment Insurance, and Quebec Parental Insurance Plan.
The Canada Employment Insurance Commission and Canada Revenue Agency have announced the 2018 premium changes to the Maximum Insurable Earnings, Employment Insurance, and the Quebec Parental Insurance Plan.
Maximum Insurable Earnings (MIE)
The MIE will increase from $51,300 to $51,700.
Employment Insurance (EI)
The EI premium rate will be $1.66 per $100 of insurable earning. This is a 3% increase from the 2017 rate and, 4% increase for employers who pay 1.4 times the employee rate.
Employers registered under the Premium Reduction Program have already been notified of the reduction for 2018.
For self-employed Canadians who have opted-in to the EI program, the annual earnings required to qualify for special benefits will increase to $6,947 on January 1, 2018, up from $6,888 for 2017.
Quebec Parental Insurance (QIPP)
The QPIP premium rate will be $1.30 per $100 of insurable earnings. This is $0.36 decrease per $100 of insurable earnings from the previous year.
OHIP+
Starting January 1, 2018, Ontario residents of age 24 years and under are eligible to receive certain prescription medications for free with their health card number and a valid prescription. Medications currently on the Ontario Drug Benefit (ODB) Formulary and eligible Exceptional Access Drugs are part of this new government program, OHIP+.
https://www.ontario.ca/page/learn-about-ohip-plusHealth and Dental
Saskatchewan reinstates PST exemption for life and health insurance products
On February 26, 2018, Saskatchewan premier, Scott Moe, announced that he is reinstating the 6% Provincial Sales Tax (PST) exemption for individual and group life and health insurance products.
The exemption is effective immediately and retroactive to August 1, 2017, the date when insurance premiums became taxable in Saskatchewan.
By April 10, the Saskatchewan Ministry of Finance will provide more information on how to administer the refunds.
Genetic testing – A law to prohibit and prevent genetic discrimination
An Act to Prohibit and Prevent Genetic Discrimination (formerly Bill S-201), came into force on May 4, 2017. This new law restricts life insurance companies from requiring an individual to undergo a genetic test or to disclose their results to the insurer for the purposes of purchasing insurance or when submitting a claim. The law requires an insurer to obtain an individual’s written consent to collect, use or disclose genetic test results.
https://www.priv.gc.ca/en/opc-news/news-and-announcements/2017/nr-c_170505/
Disability
Bill 17: The Fair and Family-friendly Workplaces Act introduced changes to the Alberta’s Employment Standards Code and Labour Relations Code that take effect on January 1, 2018.
Bill C-44, the Budget Implementation Act, 2017, No. 1 includes changes to the Employment Insurance (EI) maternity and parental benefits in addition to changes to the job-protected parental leave for federally regulated employees under the Canada Labour Code. These changes started on December 3, 2017.
You can see all the changes and their effective dates online, at the government website and in the government news release.
Bill 127, Stronger, Healthier Ontario Act includes changes to the Workplace Safety and Insurance Act, 1997 (WSIA) to allow compensation for work-related chronic mental stress under the Workplace Safety and Insurance Board (WSIB) if certain conditions are met.
People with chronic mental stress with an accident date on or after January 1, 2018 must meet three conditions to be entitled to WSIB benefits:
- an appropriate regulated health professional, such as a family physician, provides a diagnosis based on the Diagnostic and Statistical Manual of Mental Disorders (DSM);
- the person has experienced a substantial work-related stressor(s), like workplace bullying or harassment; and
- the substantial work-related stressor(s) was the predominant cause of the appropriately diagnosed mental stress injury.
People with chronic mental stress with an accident date before January 1, 2018 may be eligible for WSIB benefits if they meet the three conditions above, and if they:
- have an accident date on or after April 29, 2014, and they have not filed a claim with the WSIB for the mental stress before January 1, 2018; or
- have not yet received a final decision on their mental stress claim by the WSIB and/or the WSIAT as of January 1, 2018.
People with chronic mental stress with an accident date after April 29, 2014, who have not filed a claim with the WSIB for the mental stress before January 1, 2018, must also file a claim on or before July 1, 2018 to be eligible.
If a claim is allowed under the new policy, WSIB benefits can include psychological assessment, treatment, prescription medications, wage replacement and return-to-work services.