A few of my clients have been asking why they are continuing to pay the premium for Extended Health and especially Dental when the usage will be lower? My answer was the Insurance Companies, similar to the majority of us, are reeling from what is going on.
Their first response was to let Employers delay their premium for 60 days. I guess a band aid that allowed them and the Employers to come up with a solution that might help long term.
Canada Life (previously known as Great West Life), Sun Life, Manulife & Green Shield have done the following:
We know that cash flow is critical for many businesses right now. Premium credits can help. We’re pleased to provide this new solution to all Clients that aren’t part of Administrative Services Only (ASO).
Plan member use of dental benefits and some extended health care benefits has declined during the pandemic. The premium credits we’re providing reflect this lower usage – and we hope this can help our Clients with their cash flow needs.
Here are the changes we’re making for all non-refund Clients:
- 50% credit against dental premiums paid. Most routine dental visits have stopped during the pandemic. We’re providing a 50% dental premium credit per month. We will apply the April credit to the Client’s June 1 invoice. We will continue to assess on a monthly basis.
- Green Shield is giving a 75% reduction to dental premiums.
- 20% credit against non-drug-related extended health care premiums paid. Prescription drug usage has not declined during the pandemic. However, while plan members are increasingly making use of virtual care across their paramedical providers, we are still seeing a reduction in claims activity. To reflect this, we’re providing a 20% premium credit on the non-drug coverage portion of each Client’s extended health care benefits which approximates 8% to 9% of the overall extended health care premium. As with the dental premium credit, we’ll apply the April credit to their June 1 invoice. We will continue to assess on a monthly basis.
My clients who have Administrative Services Only (ASO), any excess premium paid into the Dental, and if you are on ASO with your Extended Health benefits, you will receive back at the end of the policy year. However, I am still confirming if we can get a premium holiday from the Dental.
We are hoping that other Insurance Companies will follow in their footsteps. We will keep you updated as the information comes in.
To stay on top of the ever changing Employee Benefit premium and benefits, sign up for our weekly Blog. This link will get you to the page and at the bottom of the page it gives you the option to Subscribe for updates!.
we are your Trusted Advocates