Group Benefits

Inflation Driving Drug Costs

According to a new report by Medavie Blue Cross, per-capita drug spending by Canadian plan sponsors increased by 4% in 2025.

The report also suggests Extended Health benefit spending grew at 5.2% but continued to make up the large share of total benefits spending (36%).

Weight management drugs entered the top 10 drug categories for the first time in 2025. For those plans that cover weight management drugs (45%), the category represented 5% of total spending. The other top categories listed are inflammatory conditions at number 1 by eligible spend (21.1%), then, in order, diabetes (11.9%), mental Health (6.4%), respiratory conditions (5.1%), cancer (4.9%), cardiac conditions (4.5%), attention-deficit/hyperactivity disorder (4.0%) and multiple sclerosis (3.1%).

Specialty drugs only represent 1% of all drug claims but accounted for 37% of total drug spending and almost 2% of plan members used at least one specialty drug.

Health Canada Approves New Drugs

Health Canada recently approved the first generic for weight loss and for treatment of type 2 diabetes.

The weight loss drug, known as Svernia, is the generic version of the brand name drug Wegovia and is indicated for the once weekly treatment of patients aged 12 and over as a supplement to a reduced calorie diet and increased physical activity for chronic weight management.

The generic version of the brand name drug, Ozempic, for the treatment of type 2 diabetes has been named interchangeable with the brand name in some provinces. However, as there was a widespread shortage of generic Ozempic, many drug plans have chosen to delay the usual process of only reimbursing up to the cost of the generic while the supply of the generic version remains unstable.

Canadian Workers Mental Health Declining in 2025 – Report

Two recent reports indicate workers are feeling burnt out and that their productivity has declined due to worsening mental health.

A new report by Telus Health analyzed employee responses from the company’s 2024 and 2025 mental-health indexes found 40% of workers are living with constant stress, with those younger than 40 most affected. The report also found a third were feeling anxious and isolated with Gen Z workers three times more likely to feel disconnected than baby boomers. Financial stress was a major driver with 49% of employees citing money as their top source of stress.

Another report from Harris & Partners Inc. included 12,000 responses, found 76% of respondents said their job or financial stress harmed their mental health in the past year.

Burnout is wide spread with the Telus report reporting 59% of workers feel somewhat or extremely burntout.

Workplace culture was listed as a key factor in resolving the issue as employees in high-trust organizations were 76% more engaged and reported lower rates of stress and burnout. In many situations, employers do have plans and resources in place and just need to have a process in place to ensure employees are aware of them.

How Employers Can Use Benefits & Communication to support Employee Health

A recent survey by Sun Life Financial polled nearly 2,000 employees and roughly 400 employers to find poor sleep continues to impact employee productivity and well-being. The survey indicated 39% said poor sleep negatively impacts their mental health and 36% their physical health while 25% said it impacts their financial health.

Nearly 9 in 10 employers believe group benefits could support sleep health and overall well-being of their employees but are unsure how their plans can help.

Communication about available benefits as well as workplace discussions have proven to have a positive impact on health and productivity. Employee Assistance programs are a great place to start as they provide a broad access for plan members and their dependents to confidential and personalized support and they are designed to address a number of the challenges known to impact employee’s sleep including mental-stress and financial wellness. In addition, there has been growth in offerings such as virtual health care and mental-health counselling that can help support employees.

Group Savings

Communication key to reinforcing value of retirement plans – Report

Employers can reinforce the value of their workplace retirement plans by communicating to plan members the importance of having money later versus all now according to a new report by the National Institute on Aging (NIA) at Toronto Metropolitan University’s Pension Centre of Excellence.

The report was based on a NIA survey of 6,000 Canadian workers aged 50 and older as well as behavioral economics research and administrative data.

The report also identified recurring problems when workplace plans are misunderstood or undervalued, including job candidates focusing on starting salary rather than total compensation, employees failing to contribute enough to receive the full employer match and retirees opting for lump-sum payouts instead of secure lifetime pensions.

Retirement plans can be well designed and well governed but still underappreciated by members without effective communication which should include tools showing how workplace pensions, personal savings and government programs, such as Canada and Quebec Pension Plans, translate into net spendable retirement income.

Canadian pre-retirees using AI for Financial Planning – Survey

A recent survey by Fidelity Investments Canada, which polled 2,000 Canadians, found a quarter (26%) of pre-retirees and 11% of retirees are using artificial intelligence for financial planning.

The survey found the most common AI uses were getting information on investments (36%), taxes (29%), and budgeting (27%). AI usage was highest in Ontario (22%), followed by the prairies (18%), B.C. (17%), Quebec (15%) and the Atlantic provinces (14%).

Research addresses link between workplace pension and personal savings

A new study finds that working Canadian’s expectations around retirement income diverge sharply from what retirees actually experience.

The research surveyed 3,317 adult Canadians polling both working Canadians and retirees. It was conducted by Spark and commissioned by CAAT Pension Plan.

Key findings of expectations for income source at retirement include:

• 25% of workers expect personal savings to be their primary income source
• 15% of current retirees rely on personal savings as a primary source
• 58% of retirees rely primarily on CPP and OAS as their income source

For plan sponsors and HR professionals, the study indicated 82% of respondents said they are more likely to take a job that offers a pension. Furthermore, 58% say lacking a workplace pension limits their ability to save.

Legislative

New Brunswick introducing new Leave for long-term illness & injury

The province’s amendment to its Employment Standards Act went into effect in June providing up to 27 weeks of job-protected unpaid leave during any 52-week period if the employee has been employed for more than 90 continuous days.

Quebec Public Prescription Drug Insurance Plan Contribution Changes

The regie de l’assurance maladie du Quebec (RAMQ) has published the changes to contributions and premiums for the public drug insurance plan covering the period July 1, 2026 to June 30, 2027.

These rates will affect Quebec residents between the ages of 18 and 64 as well as those 65 years and older not receiving the Guaranteed Income Supplement (GIS) or receiving the GIS at the rate of 1% to 93%.

The highlights are:

• The annual out-of-pocket maximum for members increases to $1,263
• The monthly out-of-pocket maximum increases to $105.25
• The monthly deductible reduces to $21.25
• The co-pay stays at 30%
• The premium increases to $789

For group plans covering Quebec residents, these changes impact in the following ways:

• The group plan’s reimbursement level for drugs will move to 100% once a plan member reaches the annual out-of-pocket listed above
• The benefit plan’s co-pay must be equal to or better than the RAMQ co-pay listed above

Manitoba Changes to sick leave and adoption policies

As of June 1, 2026, Bill 11 was passed and is scheduled to be effective October 1, 2026 amending parts of the Employment Standards Code placing a significant restriction on an employer’s ability to request sick notes. A sick note related to an injury or illness will be required in one of the following two circumstances:

• The absence continues for a period of more than seven consecutive days
• The employee, prior to or as a result of the absence, has been absent from work for more than ten scheduled work days in the calendar year.

However, the above restriction will not restrict the employer’s ability to request:

• A certificate from a physician when the employee is seeking a leave of absence such as a maternity leave
• A certificate from a health care practitioner to verify that the employee is fit to work after an absence (the employer is responsible for the cost of this certificate)

Also, on June 1^st and effective on that date, employees can take up to 16 weeks of unpaid leave when welcoming a child through adoption or surrogacy.