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Health Costs Expected To Rise

Employee health, drug, and disability costs have increased significantly or are expected to rise, says a survey of Canadian financial leaders by the Canadian Financial Executives Research Foundation (CFERF), sponsored by Morneau Shepell. ‘Banking on productivity: Managing employee health costs’ found, however, only 15 per cent said their company has considered a funding strategy to address the impact of these future costs. Drivers such as an aging workforce and the cost related to drug and disability plans, as well as legislative changes were key issues. "Canadian financial executives need to be aware of these emerging demographic and health trends that will have a substantial impact on the bottom line of Canadian businesses," says Michael Conway, chief executive and national president of FEI Canada. "In order to address the perfect storm of factors, CFOs will have a significant role to play in maintaining employee health, while holding the line on costs and ultimately improving productivity." The study also indicates that employers should direct employee health concerns to a third party or consultant to protect employee privacy and avoid concerns around discrimination. This will help shield employers from liability as they cannot be accused of discriminating against an employee for health reasons if they are not aware of the issue.

Courtesy of Benefits and Pensions Monitor website News Alerts

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