Donald Chu, Principal of BenefitDeck Consulting, shared the top benefits trends and cost drivers in 2013. In a field that's getting more complex with multiple cost drivers, it is important to keep up with the trends.

1. 2013 Benefit Trends and
cost drivers
Presented by:
Donald Chu, CEBS
Principal | Benefit Consultant
604-808-0328
donald@benefitdeck.com

2. Trends
Health care inflation tapered now at
11.5, dental at 5.5% per annum;
Causing average overall rate
increase 7-10%
Highest areas of usage:
Drugs, Dental, Healthcare
practitioners
Diagnostics Specialist Access
Insurance more popular: speed up
specialist appointment and MRI
Renewing interest in Health care
spending account– starting with
small budget

3. Top 10 employee benefits cost drivers
1. Aging demographics
2. Stress and mental health
3. Cost shifting – public vs private
plan
4. Higher incidence of chronic
disease
5. New high cost drugs

4. Top 5 Drugs (total dollars paid in millions)
1995 2000 2010
LOSEC LOSEC Remicade $ 8.4
20mg $1.5 20mg $ 2.6
PROZAC CELEBREX NEXIUM
20mg $1.3 200mg $1.3 40mg $ 6.2
IMITREX PAXIL CRESTOR
100mg $1.0 20mg $1.3 10mg $ 5.5
BECLOFORTE LIPITOR Enbrel $ 3.6
Inhaler 250mcg/Dose 10mg $1.2
$0.7
ISOPTIN SR 240mg LIPITOR Humira $ 3.4
$0.6 20mg $0.9

5. Top benefit plan cost drivers
6. Open drug plan that covers all
7. Low generic fill rate, or no generic
substitute
8. Lack of employee awareness
9. Lack of workplace care
10. Medical Advances

6. Some Good News
Fewer teenagers reported smoking in 2012:
from 15% in 2003 to 10% in 2012
In 2012, more than half of Canadians adults
stated they were active, an increase from 2008
In 2012, breast cancer among Canadian
women was 98.4 cases per 100,000, a
decrease from 101.7 cases per 100,000 in
2000
In 2012, the incidence of lung cancer was 56.0
cases per 100,000 population, a decrease from
the 58.8 cases per 100,000 in 2000

7. Wellness reduces your cost

8. Possible solutions
• Health awareness and Wellness
programs
• Employee education and
communication
• Monitoring and reporting
• Open communication with your
benefit consultant
• Plan design

9. Thank you for attending
Donald Chu, CEBS
BenefitDeck Consulting Ltd.
www.benefitdeck.com