How Has COVID-19 Impacted Benefits Plans?

The COVID-19 pandemic has changed the way we live and work, and it has also impacted our health benefits plans. A panel discussion at our recent Trends in Health and Wellness virtual conference—including Kevin Higgins, National Vice President, Trustee, Group Benefits, with Manulife; Jim Vlahos, Executive Director of The General Contractors’ Association of Toronto; and Marg Romanow, Benefits Officer with the Saskatchewan Union of Nurses, facilitated by Nick Gubbay, Principal with Eckler—discussed some of the main benefits challenges during the past year.

How Has COVID-19 Impacted Benefits Plans?

Rising mental health claims

Presenting claims statistics from Manulife’s trust business, Higgins said the top three claimed conditions have shifted during the pandemic. Mental and nervous disorders are now in the No. 1 spot, followed by respiratory and musculoskeletal claims.

With more people being out of work, there has been a real crunch on young families, he noted. For example, since women are often responsible for tasks like helping children with online school, this can add to their anxiety and stress. The pressure on mental health is “something that’s very much on our radar and that we’re watching as 2021 emerges,” Higgins added.

Today's Legal & Legislative Landscape Across Canada

Vlahos confirmed that mental health has been a key area of focus for plans in the construction industry. Concerned about bringing the virus home with them, he has seen some workers living isolated from their families. Some are turning to negative coping mechanisms like alcohol or opioids to deal with increased anxiety, stress, depression and loneliness.

To support their workers, the benefit plans for which he serves as a trustee have put in place some enhancements, such as:

  • Extending benefits eligibility and subsidizing coverage for those with pay-direct arrangements so that no one will lose their coverage due to insufficient hours or contributions;
  • Temporarily increasing the weekly short-term disability (STD) benefit amount and relaxing the eligibility criteria; and
  • Increasing the mental health benefits available to workers.

The pandemic has encouraged a more holistic approach toward health and helped us overcome the stigma of mental health issues, he added.

Thinking outside the box

From a broader perspective, benefits plan sponsors need to consider a “COVID pivot”, said Romanow. This means reviewing their policies and determining how they need to change them due to the pandemic. “Benefit plans have to adjust, and we have to be innovative,” she added.

For example, people may be fearful of going to the doctor during the pandemic or may have extended recovery times because they are unable to access certain health care services (such as physiotherapy). “We have to look at our normal adjudication process and adapt it to this situation,” Romanow explained.

One area she suggested plan sponsors focus on is their extended health plans. In addition to increasing coverage for psychological treatment, they may also consider expanding the scope to include non-traditional therapies, such as resilience training, mindfulness and homeopathic treatments. Effective communication is critical, so that employees understand the benefits available and how to access them, she added.

Of course, there will be a cost impact on the plan in the short term. However, Romanow believes that supporting workers now will have a positive impact on employee retention and the employee experience going forward. “Long term, we may have more loyal and productive workers,” she concluded.

Learn More About Mental Health and the Workplace

Employee Benefits Day is focusing on resilience and mental health this year. Find resources for plan sponsors here.

Register now for the free Benefits Day Webcast:  Mental Health at Work: Today’s Lessons for Tomorrow’s Workforce.


Alyssa Hodder
Director, Education and Outreach – Canada

The latest from Word on Benefits:

Alyssa Hodder

Communications Manager at the International Foundation

Favorite Foundation Product: The Word on Benefits Blog

Benefits-Related Topics That Grab Her Attention: Wellness, work/life balance, retirement security, parental leave policies and unique and trending perks.​

Favorite Foundation Event:The day we wait all year forNational Employee Benefits Day!

Personal Insight: Brenda goes with the flow and this approach to life puts everyone around her at ease. Brenda enjoys the mix of roles she plays from communications pro to mom and wife.

Recommended Posts

The Growing Importance of Cross-Cultural Competence

Eli Argueta
 

In the ever-expanding global marketplace, organizations are increasingly embracing the importance of understanding and respecting diverse cultures. Nowhere is this more crucial than in the realm of global benefits, where effective communication and collaboration across cultural boundaries can make all the difference. […]

Measuring and Addressing Burnout and Stress in the Workplace

Anne Patterson
 

According to the International Foundation’s Mental Health and Substance Use Disorder Benefits Survey Report, 96% of the workforce is stressed—either somewhat or very. With mostly every worker facing stress at some level, it’s important for plan sponsors/employers to know how to identify […]

Student Loan Repayment and Financial Wellness Benefits: What’s New?

Anne Newhouse
 

Student loan repayment has been more top-of-mind in recent weeks with President Biden’s announcement on February 21, 2024. The Department of Education emailed 153,000 borrowers that student loans were being discharged for those enrolled in the Saving on a Valuable Education (SAVE) […]

Paid Family and Medical Leave Legislative Developments

Jenny Gartman, CEBS
 

Proposals for paid family and medical leave at the federal level historically haven’t had enough support to become law. Many states have added paid leave mandates since 2017, creating a challenge for multistate employers seeking to deliver consistent benefits to their entire […]