In September, we provided an update on the status of the Government’s plan to modify the EI sickness benefit from it’s current maximum claim from last day worked of 17 weeks to 26 weeks.  At the time, we indicated that there was little information provided by the government and that the best course of action was to wait and see.

This has not changed.

The federal government has released no details or key dates regarding the timing, rollout of specific details of the proposed change.

Key considerations that we are unable to comment on currently include:

• What will the impact to EI Premium Rates be?
• For companies with a Short-Term Disability, Weekly Indemnity or Salary Continuance plan, how will the EI Premium Reduction apply?
  • Will there be a reduction for those that do not make changes to their current benefit periods?
  • What will the reduction be for those companies that do?
  • What will the application process for these reductions look like?
• Will EI continue to be second payor during the 9-week extension?
• How will insurers react to the changes?

The most burning question is:  Will we see this program rolled out?

The reality is that the political landscape has shifted since this change was announced and it may be part of the current government’s pollical strategy to make this an election issue to attempt to win more votes.  If that is the case and the government fails to maintain power, we may never actually see this change occur.

National Dental Care

Like the changes to EI, National Dental Care is an initiative driven by politics that may become a bargaining chip for the current government. The proposed rollout schedule has already begun and families with a total household income less than $70,000 are eligible for a direct tax-free payment of $650 per child under 12 years old. There is no proof of claim required and no adjudication by the government.

This number decreases for $390 per child for households earning between $70,000 and $80,000 and $260 for those earning between $80,000 and $90,000.

The goal is to roll out a full program by 2025, but this will face challenges since the management of Health Care is a provincial responsibility and some provinces are unlikely to accept Federal interference.

For the time being, the tax credit system does not appear to have challengers, but as this program matures, it is likely to face legal challenges.

Also, like OHIP+ back in 2017, a change in government could result in the program being cancelled.

Summary

LIG is committed to keeping you up to date on changes in the benefits and legislative landscapes. These two programs have the potential to impact the cost and sustainability of your benefits program.

If you are considering changing your plan design to align with either of these changes, we would strongly recommend waiting until more information is available.

If you would like to make a change related to these benefits regardless of the impact of legislation, please speak to your consultant.