Cost Increases for Extended Health & Dental Plans 2023
Canadian employers will continue to experience year-over-year increases in the costs of their extended health benefit and dental plans. Overall, the cost increases in 2023 are higher than those in past years.
Annual Survey of Insurer Trend & Utilization Factors
Western Compensation & Benefits Consultants conducts an annual survey of insurers’ extended health and dental trend and utilization factors. These factors reflect the insurers’ anticipated increases to health and dental costs. The 2023 survey includes the following major Canadian insurance companies:
- Canada Life;
- Co-operators Life Insurance Company;
- Desjardins Insurance;
- Empire Life Insurance Company;
- Equitable Life of Canada;
- Industrial Alliance Insurance and Financial Services Inc.;
- Pacific Blue Cross;
- SSQ Insurance (Beneva); and
- Sun Life.
Extended Health Benefits
Annual increases in extended health benefits costs will result from a number of factors, including:
- Impact of rising costs of drugs, services and supplies;
- Increasing utilization of extended health benefits by covered employees and their dependents, especially for paramedical services and high-cost specialty drugs;
- Increasing use of high-cost specialty drugs to treat a broader number of more common diagnoses;
- Increasing costs of providing more support for mental health;
- Removal or reduction of covered services from the government sponsored plans (e.g. Medical Services Plan of B.C.);
- An aging population; and
- A greater awareness of health and wellness.