Benefit Solutions
Account Management
At MacNeil Benefits, we pride ourselves on delivering excellent, hands-on client service and management. We encourage our clients to contact us directly to discuss or correct any issues that may arise. Also, we ask employees to get in touch with us should they have any claims issues with the insurance company.
We also try our best to keep clients informed as to their current claims experience so we may prepare them for which direction the renewal may go as far as rates are concerned.
Please note – we do not charge any extra fees for our ongoing advice or service throughout the year.
Cost Containment Strategies
According to the Sanofi Canada Healthcare Survey 2012 “while plan sponsors may fear making changes to health benefits that could reduce their impact as an attraction and retention tool, survey results indicate a willingness on the part of employees to be part of cost-management strategies.”
Cost containment strategies focus on changing the ways benefits are delivered and used without cutting back the coverage.
Examples of cost containment strategies are:
- Drug Management Plans (such as implementing a mandatory generic plan or capping dispensing fees to encourage employees to make better purchasing choices)
- Central Dispensing Pharmacies (steering employees to purchase drugs from a CDP where drugs are bought in bulk and are typically much cheaper with lower dispensing fees than a regular pharmacy)
- Early Intervention for Disability and Prolonged Illness
- Disability Case Management
- Health and Wellness Initiatives often tied in with an Employee Assistance Program
These are just a few examples of ways in which we can deliver a sound benefit plan and ensure it is stable and health for years to come.
Union
Compliance
We have vast experience and knowledge when it comes to providing benefits for unionized employees. We follow the language of all collective agreements to the letter.
We have also participated in several discussions between employees and employers who work out their own deals to arrive at mutually beneficial packages that are agreed to by both parties.
Health & Wellness Initiatives
Another potential solution for dealing with rising premiums is to the broaden the concept of workplace wellness. The hope is by encouraging safety, health and wellness, employers not only address the rising cost of benefit plans but also to improve employee engagement and productivity. Employers are beginning to realize that an investment in a healthy workplace culture will yield significant returns, not just in reduced benefits costs but in improved productivity and employee engagement.
Common and effective health and wellness initiatives include:
- Access to fitness equipment or gyms
- targeted health programs such as smoking cessation or diet programs
- subsidized gym memberships
- targeted employee education on chronic and critical disease
- Morning or afternoon walking groups or yoga sessions
Employers who create a culture of health and wellness in the workplace often find a boost to their bottom line. This comes in the form of growth through such key areas as increased employee retention, greater employee engagement, reduced absenteeism and attraction of top-notch talent.
Taxability of Benefits
Group Life Insurance
Any premiums paid by the employer for an employee’s Group Life Insurance are considered taxable. Therefore, the premiums paid by the employer on behalf of an employee must be shown on the employee’s T4 as other income. Death benefits are non-taxable to the recipient.
DEPENDENT LIFE:
The same rules apply as with Group Life Insurance.
ACCIDENTAL DEATH AND DISMEMBERMENT and GROUP CRITICAL ILLNESS:
Premiums paid by an employer for group Accidental Death & Dismemberment Insurance (AD&D) and group Critical Illness Insurance (CI) will be considered taxable income to the employee. Premium contributions made by an employer after March 28, 2012, for group AD&D and CI plans in place on or after January 1, 2013, will be considered a taxable benefit, and must be included as income for the year in which the contributions are made. Benefits are non-taxable to the recipient.
Health (Including Vision Care) and Dental
Premiums paid for these benefits can be 100% employer-paid and no taxable benefit is conferred upon the employee.
Employee contributions to premiums for Health, Vision Care and Dental do qualify for a tax credit as a medical expense on their personal income tax returns if the total expenses paid are more than 3% of the individual’s annual net income.
Short & Long Term Disability:
These benefits can be set up in one of two ways: taxable or non-taxable.
- Taxable: If the benefit is set up as taxable, premiums paid by the employer do not confer a taxable benefit upon the employee. However, when an employee becomes disabled, the benefits received from the insurance company are deemed taxable income.
- Non-Taxable: If the benefit is set up as non-taxable, the employee should pay for the entire premium. If an employee becomes disabled, any benefit received would be non-taxable.
Medical Services Plan (MSP):
Any premiums paid by the employer for MSP are considered taxable.
For all benefits, any premiums paid by the employer are tax deductible to the business. Any premiums paid by the employee are paid out of after-tax dollars (i.e. these deductions do not reduce an employee’s taxable income).
Employee Education
Employee education is vital to the success of any benefit plan. Employees who have a greater understanding of how benefit plans are funded are less likely to abuse the plans. In addition, employees who are more involved in decisions as to what their coverage will be are far more likely to agree to changes to keep the plan costs in check.
We are available to meet with employees at any time to discuss their plan, talk about their options and answer any questions they may have. Particularly, we meet with employees when any changes have been made to their plan or if a change in insurers is being made.
Again, we never charge our clients extra fees for these meetings.