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Managing healthcare costs an unmet challenge for most Canadian employers

A new survey from global insurance and risk management consulting firm Gallagher reveals that 57% of Canadian employers are looking to increase employee headcount next year, but could face a serious financial burden as a result.

According to the firm’s 2018 Benefits Strategy & Benchmarking Survey – Canada Edition, 64% of Canadian employers don’t have an effective strategy for managing healthcare expenses, and almost none employed advanced tactics to cut prescription-drug costs.

“Because we are in a tight labour market, organizations understand the importance of offering competitive benefit packages,” said Leslie Lemenager, head of Gallagher’s Canadian employee benefit consulting operations. “But today’s workforce encompasses five generations, and each wants a benefits package that addresses their own individual set of needs.”

Among 468 employers surveyed, 55% identified high prescription costs as a top cost management challenge; 64% cut costs by mandating generic or least-cost alternative products. But the study also found that just 5% use expense-management tactics such as step therapy, streamlining the supply chain, or mail-order options, all of which could significantly decrease drug expenses.

 

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Article provided by: Life Health Professional – by Leo Almazora – 19 Dec 2018