GUIDE TO CANADIAN BENEFITS LEGISLATION SUPPLEMENT

Transcription

1 GUIDE TO CANADIAN BENEFITS LEGISLATION 2014 SUPPLEMENT

2 INTRODUCTION FORWARD The Williamson Group is pleased to include this Supplement with the latest edition (2014) of our Guide to Canadian Benefits Legislation. This Supplement is intended to provide readers with a quick summary of major legislative updates that occurred in 2013, or are expected to occur in The Supplement is not intended to provide a comprehensive explanation of all the details of the complex legislation governing programs. If expert advice is required, contact a TWG consultant to discuss the matter further. It should be understood that this Supplement does not include standard informational or generally accepted basic guide updates (minor changes to dates, charts, percentages, numbers min/max, dollar amounts, or basic wording updates). All of the aforementioned standard and basic updates have been made within the full Guide to Canadian Benefits Legislation, and should be reviewed on an as needed basis to ensure your organization remains up-to-date. This Supplement is current and up-to-date to the time of drafting; however, given the number of stakeholders involved, details are continuously under review and may change. As changes occur, pertinent details will be communicated by The Williamson Group to clients and partners. Please check the websites provided within the Guide to obtain full details of programs and services, including any recent updates. We hope you find this Supplement useful. Please tell us if you think it is, and where you see any opportunities to improve. Your comments will help us develop the Supplement and Guide into an even more valuable tool for you and your organization. Errors & Omission Statement: Whilst every reasonable effort has been made to ensure the accuracy of the information supplied herein, The Williamson Group cannot be held responsible for any errors or omissions. Unless otherwise indicated, opinions expressed herein are those of the author of the various sources referenced and do not necessarily represent the corporate views of The Williamson Group Inc. To the best of our knowledge. the information contained herein is accurate and up-to-date only to the time of draft. For further clarity, information provided is a consolidation of various information sources, which are subject to regulatory and legislative changes, as such is the case, this document is intended for general information purposes and The Williamson Group makes no representations or warranties as it its accuracy or completeness. 1

3 EMPLOYMENT STANDARDS LEAVE OF ABSENCE FEDERALLY REGULATED EMPLOYEES BILL C-44, HELPING FAMILIES IN NEED LEAVE OF ABSENCE RELATED TO DEATH, DISAPPEARANCE, OR CRITICAL ILLNESS OF A CHILD As part of Bill-C44, the Helping Families in Need Act, the Canada Labour Code has enacted new provisions for unpaid leave. It will apply to parents as follows: A child dies, A child disappears as the result of a suspected Criminal Code offence, When care for a critically ill child (under 18 years of age) is required. SEE PAGE 7 These new provisions of the code will protect the employee s employment during their leave. The amendments to the Canada Labour Code took effect January 1, 2013, for parents of murdered or missing children, and were placed into effect for the parents of cirtically ill children in June The critical illness of a child leave is unpaid time off work for up to 37 weeks to allow parents to provide care and support. The provided leave related to the disappearance of a child is up to 52 weeks if the disappearance is the result of a crime. If the child has died as a result of a crime, the employee is entitled to take a leave of up to 104 weeks. Employees can take said leave without fear of job loss. INCOME SUPPORT FOR PARENTS OF MURDERED OR MISSING CHILDREN A new grant became available effective January 1, This new grant provides $350 per week for up to 35 weeks to parents of murdered or missing children (less than 18 years of age) whose death or disappearance is the result of a suspected Criminal Code offence. There is an income requirement to be eligible for the grant. The parents of the child will need to have earned a minimum $6,500 in the previous calendar year and take a leave of absence from their employment. 2

4 EMPLOYMENT STANDARDS LEAVE OF ABSENCE - CONTINUED ALBERTA COMPASSIONATE CARE LEAVE NOW APPLIES TO ALBERTA On February 1, 2014, the Compassionate Care Leave amendments to the Alberta Employment Standards Code came into effect. The amendments allow an employee to take unpaid job-protected leave of up to eight weeks to care for a seriously ill family member. As a prerequisite of leave, the employee must have completed at least 52 consecutive weeks of employment with the employer. While on compassionate care leave, the employee is entitled to receive Employment Insurance. SEE PAGE 42 3

5 EMPLOYMENT STANDARDS LEAVE OF ABSENCE - CONTINUED MANITOBA LEAVE OF ABSENCE RELATED CRITICAL ILLNESS OF A CHILD This leave is protected unpaid time off work for up to 37 weeks to allow parents to provide care and support for a critically ill child who is under 18 years old. The leave came into effect June 2013, to coincide with the introduction of federal income support benefits (Bill C-44, Helping Families in Need Act). Employees who have worked for the same employer for at least 30 days, and are a parent of a critically ill child under 18 years old are entitled to the leave. A PARENT IS DEFINED AS ONE OF THE FOLLOWING: A parent of a child; The spouse or common-law partner of a parent of a child; A person with whom the child was placed for the purposes of adoption; The guardian or foster parent of a child; or, A person who has the care, custody or control of a child, and is considered to be like a close relative, whether or not they are related. For more information pertaining to this leave, please visit the following website: LEAVE OF ABSENCE DUE TO DEATH OR DISAPPEARANCE OF A CHILD SEE PAGE 9 This leave allows parents to take a leave of absence from work to help deal with the death or disappearance of a child that occurred as a result of a crime under the Criminal Code. This leave came into effect January 1, 2013, to coincide with the introduction of federal income support benefits Bill C-44, Helping Families in Need Act. Employees who have worked for the same employer for at least 30 days, and are a parent of child under 18 years old who has disappeared or died as a result of a crime under the Criminal Code. The leave is available for employees for up to 52 weeks if they are a parent of a child who has disappeared as a result of a crime. If the child has died as a result of a crime, the employee is entitled to take a leave of up to 104 weeks. Employees can take the leave without the fear of job loss. For more information pertaining to this leave, please visit the following website: Complementing the new federal Bill C-44 Helping Families in Need Act, employees covered by the Critically Ill Child Care Leave and the Crime-Related Child Death and Disappearance Leave would be eligible to apply for federal Employment Insurance benefits. 4

6 EMPLOYMENT INSURANCE REGULAR BENEFITS INCREASES TO EI MAXIMUMS The Federal Government recently announced an increase in the employment insurance (EI) maximum insurable earnings amount, and a corresponding increase in the weekly maximum EI benefit. Effective January 1, 2013, the maximum annual insurable earnings increased from $45,900 to $47,400; and the maximum weekly insurable earnings increased from $ to $ Accordingly, the new maximum EI benefit amount increased from $485/week to $501/week - or 55% of the maximum weekly insurable earnings. SEE PAGE 45 Effective January 1, 2014, the maximum annual insurable earnings increased from $47,400 to $48,600; and the maximum weekly insurable earnings will increase from $ to $ Accordingly, the new maximum EI benefit amount will increase from $501/week to $514/week - or 55% of the maximum weekly insurable earnings. IMPACT ON SHORT-TERM DISABILITY PLANS Short-term disability (STD) plans that have a maximum set at the EI maximum, rather than at a specific amount, automatically increased, effective January 1, If your plan has a specific dollar maximum that is less than $514 per week, and you participate in the EI premium reduction program, you will need to amend your plan to maintain at least $514 per week in order to remain eligible for the program. EI PREMIUM RATES HAVE BEEN UPDATED ON PAGE 45 OF THE FULL GUIDE TO CANADIAN BENEFITS LEGISLATION THREE-YEAR FREEZE ON EI PREMIUMS On September 9, 2013, the Federal Government announced that it would be cancelling its planned EI premium hike for SEE PAGE 45 Instead, EI premiums were to be frozen at the 2013 level of $1.88 per $100 of insurable earnings. The Government also stated that the rate would not exceed $1.88 for 2015 or On the same date, the Employment Insurance Commission announced that the yearly maximum insurable earnings will be increased from the 2013 level of $47,400 to $48,600 in

7 EMPLOYMENT INSURANCE SPECIAL BENEFITS CHANGES TO EMPLOYMENT INSURANCE (EI) WITHIN SPECIAL BENEFITS FOR PARENTS Bill C-44, Helping Families in Need Act, has received Royal Assent and is now law. ACCESS TO SICKNESS LEAVE/BENEFITS AVAILABLE DURING PARENTAL LEAVE EI sickness benefits will now be available to parents who become ill while receiving parental leave EI benefits. The change to EI removes the available for work condition which had to be met before. With parents on parental benefits who qualify for sickness benefits, they may interrupt their parental benefits and take the sickness benefits with the balance of the parental benefits at the end of the sickness benefits, or, they can take the sickness benefits at the end of the scheduled parental leave. This change could potentially extend parental leaves by up to 15 weeks. SEE PAGE 42 SPECIAL BENEFIT FOR PARENTS OF CRITICALLY ILL CHILDREN EI has introduced a new benefit for parents of critically ill children. The benefits are payable for up to 35 weeks. Qualifications remain the same as other EI benefits with respect to the employee working a minimum of 600 insurable hours in the last year. All applicants will also need to submit a medical certificate signed by a Canadian-certified pediatrician or medical specialist. This benefit may be shared between parents within a 52-week period. Benefits will end after one of these conditions is reached: The maximum of 35 weeks of benefits have been paid; The 52-week benefit period ends; The child s condition improves to the point where parental care or support for the condition is no longer required; Or, in the unfortunate event that the child passes away. EMPLOYMENT INSURANCE ACT ( EI ACT ) Effective March 24, 2013, certain sections of Helping Families in Need Act proclaimed into force sections 15, 16, and 21. Sections 15 and 16 amend the Employment Insurance Act ( EI Act ) to allow insured and self-employed persons who are in receipt of employment insurance ( EI ) parental benefits to qualify for EI sickness benefits should they become ill or are injured while on parental benefits, even though they are not available for work. Section 16 of the Act amends the EI Act to ensure that, regardless of the reason a claimant stopped working, if the claimant is in receipt of any sickness benefits under a provincial law due to illness, injury or quarantine, the EI benefits payable shall be reduced or eliminated as prescribed. Regulations giving support to these amendments have been registered. Regulations Amending the Employment Insurance Regulations come into force on March 24, Regulations amending the Employment Insurance (Fishing) Regulations should be consulted for coming into force information. SEE PAGE 42 Effective June 9, 2013, the Federal government implemented subsection 2(1) and sections 5, 13, 14, 17 to 20 and 22 to 25 of the Helping Families in Need Act came into force. These sections amend the Canada Labour Code to provide an unpaid leave to an eligible federally regulated employee whose child is critically ill and the Employment Insurance Act to create a new employment insurance benefit for eligible parents of critically ill children. Regulations amending the Employment Insurance regulations, supporting regulations to these amendments, were registered on May 24, 2013 and came into force on June 9,

8 RETIREMENT INCOME DISABILITY BENEFITS & QPP QUEBEC CHANGES TO QPP THAT IMPACT DISABILITY BENEFITS Effective on January 1st 2013, Quebec s passed legislation, Bill 39, which amended the Act respecting the Quebec Pension Plan while also including changes to allow for an individual who is in receipt of retirement pension, to apply for an additional disability pension amount. Converting QPP Retirement to QPP Disability Pension in the Event of Disability Before January 2013, an individual between the ages of 60 and 65 and in receipt of a QPP retirement pension, who became disabled within six months of the first payment date of their retirement pension, could apply to have the retirement pension switched to a disability pension (which is often a higher amount). The individual had to apply for the disability pension within 18 months from the first date of the retirement pension. SEE PAGE 37 After these changes to QPP took effect in January 2013, individuals in Quebec who are outside of the six month time limit to change from QPP retirement to QPP disability could apply to receive an additional amount for disability. If approved, the individuals would receive a combination of retirement and disability pension from QPP. The plan member must have contributed to QPP for at least four of the six years preceding the date of disability in order to be eligible for this additional disability pension amount. The additional amount for disability pension in 2013 is a set monthly amount of $ that is paid to the age of 65. 7

9 HEALTH INSURANCE PLANS GENERIC DRUG PRICING CHART GENERIC DRUG PRICING AS PERCENTAGE OF BRAND PROVINCE British Columbia 60% 42% - 50% Effective July 40% Effective July 35% Effective April 25% Effective April Alberta 45% 35% Effective July Saskatchewan 60% 40% - 45% Effective April 35% Effective April Manitoba Lowest generic price match Ontario 60% 50% Effective April 35% Effective April 25% Effective April Quebec 45% 37.5% 30% Effective April 25% Effective April Newfoundland & Labrador 60% 45% 40% Effective July 35% Effective April 25% Effective July 1, 2013 Nova Scotia 60% 45% Effective July 40% Effective Jan. 35% Effective July New Brunswick 50% - 70% 40% Effective April 35% Effective January 25% Effective June 1, 2013 Prince Edward Island 60% 35% Effective April North West Territories Information not available Yukon Information not available Nunavut Information not available IMPACT TO PLAN SPONSORS The management of drug pricing is critical to the sustainability of drug benefit plans. For groups that have opted for a generic pricing plan, claims for a brand name drug will be reimbursed at the lowest cost alternative. As such, groups with generic pricing in place will benefit the most from provincial drug pricing reforms. For more information about converting to a generic plan, please contact your TWG consultant. **Please see page 20 of Supplement for information regarding Federal reduction in pricing of top six generic drugs to 18% of brand across Canada, except Quebec. 15

10 HEALTH INSURANCE PLANS GENERIC DRUG PRICING REDUCTION IN PRICE OF TOP SIX GENERIC DRUGS Effective April 1, 2013, all provinces, except Quebec, and all Territories reduced the price of the top six generic drugs to 18% of the brand. TOP SIX GENERIC DRUGS GENERIC OF BRAND USED TO TREAT Atrovastatin Lipitor High Cholesterol Ramipril Altace Blood Pressure Cardiovascular Venlafaxine Effexor Depression Mental Health Amlodipine Norvasc Blood Pressure Omeprazole Prilosec Gastrointestinal Raveprazole Pariet Gastrointestinal The 18% price point reduction of these six brand drugs is the lowest achieved generic prices in Canada to date. Under the Generic Pricing Initiative, a program driven by Saskatchewan and PEI, these six products represented an estimated 20% of public spending on generic medicines in the country. This reduction has been designed to take a more coordinated approach to price setting while allow for leverage of the combined purchasing power of the provinces and territories. 20

11 HEALTH INSURANCE PLANS PROVINCIAL ALBERTA HEALTH CARE INSURANCE PLAN (AHCIP) COVERAGE FOR INSULIN INFUSION PUMPS FOR PATIENTS WITH TYPE 1 DIABETES As of June 1, 2013, the Alberta government became the first to offer coverage for insulin-infusion pumps and some pump supplies to all patients affected by Type 1 diabetes without an age restriction. These patients must be referred to the program by a physician or nurse practitioner. The patients must also meet the proper eligibility and clinical criteria to be covered under the new program. For patients already using a pump, the Insulin Pump Therapy program will also cover the costs of some pump supplies for up to five years. Those patients using a pump will need to be assessed to ensure they meet the eligibility and clinical criteria for the IPT program. For more information about the Insulin Pump program, you can visit the Alberta government website here: SASKATCHEWAN MEDICAL CARE INSURANCE PROGRAM SEE PAGE 64 PROVINCIAL DRUG DISPENSING FEE INCREASED FROM $10.25 TO $10.75 Effective May 1, 2013, the Saskatchewan Ministry of Health successfully completed negotiations between the Pharmacists Association of Saskatchewan (PAS) and The Drug Plan and Extended Benefits Branch (DPEBB). When the dispensing fees were increased, the province saw an increase in professional pharmacy dispensing fees from $10.25 to $

12 HEALTH INSURANCE PLANS PROVINCIAL - CONTINUED RÉGIE DE L ASSURANCE MALADIE DU QUÉBEC (RAMQ) REDUCTION IN REIMBURSEMENT COVERAGE OF SMOKING CESSATION PRODUCTS In previous years, RAMQ has increased the plan member coverage and reimbursement of smoking cessation products from $665 in 2012 to $725 on January 1, For the 2014 calendar year, the Régie de l assurance maladie du Quebec (RAMQ) announced a reduction of the maximum amount for smoking cessation aids and products to $700. This reduction takes into account current drug therapies and also reflects the decrease in cost for these products. Please note that the $700 amount is the total eligible amount within RAMQ. Therefore if a plan reimburses at 80%, the maximum that the plan will reimbuse, beginning in the 2014 calendar year, is $560. SEE PAGE 90 Like other drugs listed within the RAMQ formulary, smoking cessation products are covered only when obtained through a prescription in Quebec. In addition, coverage is limited in terms of duration and in quantity). Smoking cessation products that are covered include skin patches, nicotine gum and lozenges, and two types of tablets. Max. Amount Reimbursed Coverage of Smoking Cessation Aids and Products in Quebec $665 $725 $700 DURATION OF COVERAGE Skin patches are covered for a maximum of 12 consecutive weeks per 12-month period. During those 12 weeks, the plan reimburses a maximum of 840 lozenges or pieces of gum. The tablets are also covered for 12 consecutive weeks per 12-month period, whether or not they are used at thesame time as the nicotine patches, gum, or lozenges. Coverage of one-type of table may be extended an additional 12 weeks, provided that you have stopped smoking. The coverage period of smoking cessation products is calculated from the date of purchase said products, not from the date one begins usage. 9

13 HEALTH INSURANCE PLANS PROVINCIAL - CONTINUED RÉGIE DE L ASSURANCE MALADIE DU QUÉBEC (RAMQ) - CONTINUED ABOLISHMENT OF BAP-15 WITHIN RAMQ FORMULARY The Régie de l assurance maladie du Québec (RAMQ) has abolished the long-standing BAP-15 policy (Best Available Price guarantee), or the 15 years rule, effective January 14, SEE PAGE 90 The BAP-15 policy stipulated that Quebec s public drug plan (RAMQ) agreed to reimburse brand-name drugs for 15 years after their listing on the formulary - regardless of patent expiry, effectively reducing competition with generics and allowing pharmaceutical innovator companies an opportunity to recoup their drug development investment. The abolishment of this policy means that RAMQ will no longer fully reimburse the approximately 60 brand name drugs (many with expired patents) that were formally protected by this rule. RAMQ will thus only reimburse the lowest priced medication, historically meaning the generic alternative. IMPACT For plan members and sponsors, the abolishment of BAP-15 offers an opportunity to save on prescriptions by switching to more cost-effective, generic versions also on the RAMQ formulary. These generics can save between 25% - 35% of the brand cost, thus the plan member s co-pay, or the plan sponsor s portion, can be reduced. 10

14 HEALTH INSURANCE PLANS PROVINCIAL - CONTINUED NEWFOUNDLAND & LABRADOR MCP REDUCTION FROM 35% TO 25% FOR GENERIC DRUGS OF THE EQUIVALENT BRAND-NAME Effective July 1st, 2013, the government of Newfoundland & Labrador reduced the reimbursement prices of solid oral dosage from generic drugs of the equivalent brand name from 35% to 25%. Prices of non-solids will be set at 35%. This excludes the previous change to the top six generic drugs which are priced at 18% of the brand name equivalents. NOVA SCOTIA MEDICAL SERVICES INSURANCE (MSI) FUNDING FOR INSULIN PUMPS AND SUPPLIES FOR CHILDREN WITH TYPE 1 DIABETES, YOUNG ADULTS AGES CAN ALSO APPLY FOR COVERAGE On September 16th, 2013, Nova Scotia began receiving applications for a program to provide provincial funding for insulin pumps and pump supplies for children aged 18 or younger with Type 1 diabetes. With this new program, young adults between the ages of 19 and 25 can also apply for coverage for their insulin pump supplies. All applicants must meet the program s criteria to be eligible for funding. Funding through the program will be based on: Family income Family size Medical eligibility As a result of this, not all successful applicants will receive the same funding. The program was specifically designed to assist low income families in Newfoundland & Labrador and to provide coverage for those who would not be able to afford an insulin pump and supplies. This program was initially announced in April of As such, families who purchased a pump and supplies since the announcement of the program on April 4th, 2013 may apply for funding consideration. SEE PAGE 104 SEE PAGE 15 OF SUPPLEMENT 11

15 HEALTH INSURANCE PLANS PROVINCIAL - CONTINUED NEW BRUNSWICK MEDICARE PRESCRIPTION AND CATASTROPHIC DRUG INSURANCE ACT On December 10th, 2013, New Brunswick introduced their Prescription and Catastrophic Drug Insurance Act. This act provides citizens with access to a government-sponsored prescription drug insurance plan (the New Brunswick Drug Plan), which is administered by Medavie Blue Cross. The plan will be jointly funded by the government and plan participants in accordance with their ability to pay.the New Brunswick Drug Plan is designed to ensure all New Brunswickers have access to drug coverage without barriers such as waiting periods, medical exams or pre-existing exclusions. A BRIEF OVERVIEW Phase 1 - Voluntary - Effective May 2014 to March 2015: All New-Brunswickers with a valid Medicare card may access the public plan Plan members who are currently insured for drugs, but are impacted by exclusions or overall drug caps in their private group plan, may access supplemental coverage through the public plan SEE PAGE 109 Phase 2 - Mandatory - Effective April 1, 2015: New Brunswickers with a valid Medicare card must have the minimum level of drug coverage outlined by the Act, whether through a private or public plan Private plans will be required to meet the minimum standards outlined by the Prescription and Catastrophic Drug Insurance Act One of the following co-pay caps must be in place for the drugs listed on the legislated NB drug formulary: - A maximum out-of-pocket for each participant of $2,000 per year, OR - No deductible, and a co-payment that is no more than $30 per prescription Plan Sponsors who offer flexible benefit plans to their members must offer at least one option that meets the minimum level of drug coverage, and members must be allowed to change that option within one year, or after a life event (such as birth, death or marriage) Private group plans cannot refuse coverage on the basis of age, gender, or state of health of any eligible participants Private group plans cannot have annual or lifetime limits Private plans offering vision, dental, medical insurance, or Health Spending Accounts must offer drug coverage Private group plans must offer dependent coverage to the age of 19, and for a child over 19 years of age, but under 26 years of age, who is a full-time student at a secondary or post-secondary educational institution Who is eligible? On May 2nd, 2014, the New Brunswick Drug Plan will become available to citizens who have a valid New Brunswick Medicare Card and fall into one of two categories: 1) Do not have private prescription drug plan coverage 2) Do have private prescription drug plan coverage and meet one of the following criteria: a) Have already reached their annual or lifetime drug coverage maximum; OR b) Require a specific drug that is on the New Brunswick Prescription Drug Program (NBPDP) formulary but is not on their current prescription drug plan(s). The plan will cover approved drugs that are on the NBPDP formulary which coincides with a national evidenced-based drug review process currently in use by public drug plans across Canada. To view the full Prescription and Catastrophic Drug Insurance Act, please visit: 12

16 HEALTH INSURANCE PLANS PROVINCIAL - CONTINUED NEW BRUNSWICK MEDICARE REDUCTION FROM 35% TO 25% FOR GENERIC DRUGS OF THE EQUIVALENT BRAND-NAME Effective June 1st, 2013, the government of New Brunswick reduced the reimbursement prices of solid oral dosage from generic drugs of the equivalent brand name from 35% to 25%. Prices of non-solids will be set at 35%. This excludes the previous change to the top six generic drugs which are priced at 18% of the brand name equivalents. SEE PAGE 15 OF SUPPLEMENT 13

17 HEALTH INSURANCE PLANS PROVINCIAL - CONTINUED PEI HOSPITAL & MEDICAL SERVICES PLAN NEW CATASTROPHIC DRUG PROGRAM Announced in October 2013, the Catastrophic Drug Program provides aid to citizens of Prince Edward Island whose eligible prescription drug costs are affecting their household s ability to maintain life essentials. With this program, citizens will have their annual out-of-pocket drug costs for eligible prescription medications capped at an amount not exceeding their household cap ; a set percentage of their household income. SEE PAGE 114 To qualify for coverage by the program, participants must meet the following requirements: Be a permanent PEI resident (a person who is present in the province for 6 months or more per year). Along with any eligible household members, must file a PEI tax return for the previous year for which you are applying to the program to claim benefits. Have a valid PEI Health Card. Once a household has spent a certain percentage of its income on eligible drug costs, any further eligible prescription drug costs will be paid through the Catastrophic Drug Program for the remainder of the program year (July 1st to June 30th). For the first year of the program, all eligible prescription expenses from October 1st, 2013 to June 30th, 2014 will be considered towards the household cap. For only the first year, the cap will be set at 75% of the annual household cap as the program began in October 2013 rather than July Total Household Income Ranges $0 to $20,000 3% Greater than $20,000 to $50,000 5% Greater than $50,000 to $100,000 8% Greater than $100,000 12% Rate Household income is determined by every household member who is eligible to apply for the program. A household can consist of: An adult over the age of 18 (unless they are enrolled full-time at a post-secondary institution and are under the age of 26) or; An adult and a spouse, or; An adult and any dependent children (under the age of 19 or under the age of 26 and attending a post-secondary institution full-time) or; An adult, spouse and any dependent children. A spouse is defined as a married or common-law partner. Prescriptions under this program can be filled at any PEI community pharmacy. For more information, please visit: 14

18 TAXATION PROVINCIAL BRITISH COLUMBIA REVERTING BACK TO GOOD AND SERVICES TAX (GST) & RETAIL SALES TAX (RST) The Harmonized Sales Tax (HST) came into effect in British Columbia on July 1, However, effective April 1, 2013, British Columbia reverted back to separate Federal (Goods and Services Tax, GST) and Provincial (Retail Sales Tax, RST) taxes. Effective on April 1st, 2013, the government of British Columbia removed the 12% harmonized sales tax (HST) on property or services made in B.C. as well as property or services imported or brought into B.C. that are not zero-rated supplies. Instead, there will be a 5% federal goods and services tax (GST) applied to these products and importations. Citizens of B.C. will pay the 5% GST on purchases of taxable goods, intangible property (such as rights), and services, if either of the following applies: The tax became payable after March 31, 2013, without having been paid before April 1, 2013; or The tax is paid after March 31, 2013, without having become payable before April 1, 2013 SEE PAGE 131 IMPACT Contracts that are currently charged the British Columbia rate of HST will be subject to the GST only. The British Columbia transition rules to change the tax system indicate that invoice/statements prepared on or after April 1, 2013 will be subject to the GST only ONTARIO ONTARIO PASSES EMPLOYER HEALTH TAX ACT AMENDMENTS On December 12, 2013, the Ontario government passed Bill 105, the Supporting Small Businesses Act, As previously reported, the Bill amends the Employer Health Tax Act to increase the exemption amount for eligible employers to $450,000 for the calendar years 2014 to 2018, after which an exemption amount would be adjusted every five years on the basis of a specified formula, among other things. SEE PAGE 81 The Bill also received Royal Assent on December 12,

19 TAXATION PROVINCIAL - CONTINUED MANITOBA Effective on July 1, 2013, the government of Manitoba increased its provincial retail sales tax (RST) from 7% to 8%. Since July 2012, the RST in Manitoba has applied to group insurance premiums for plan members who reside in Manitoba on the following coverage: Life Accidental death & dismemberment Disability (STD & LTD) Critical Illness All Creditor Insurance RST is now applicable on the following premiums (taxable insurance premiums): Group Life insurance Group Dependant Life insurance Group Optional Life insurance Group Paid-Up Life insurance Group Accidental Death & Dismemberment insurance Group Basic Critical Illness insurance Group Optional Critical Illness insurance Group short-term disability insurance Group long-term disability insurance Non-healthcare pooling SEE PAGE 132 Premiums, claims and fees for Manitoba residents that will not be subject to RST include: Group health and dental insurance Healthcare pooling Administrative Services Only (ASO) healthcare claims and fees ASO disability claims and fees Healthcare Spending Account claims and fees Medical Reimbursement Plan claims and fees Individual health insurance products Applicability of RST charges are subject to change as are the taxability status of certain premiums. Exemptions from the Manitoba RST include extended health care, dental coverage, and administration services only (ASO) arrangements. 18

20 TAXATION PROVINCIAL - CONTINUED PRINCE EDWARD ISLAND Effective April 1, 2013, Prince Edward Island combined the Federal and Provincial tax system - combining the GST and RST into a single Harmonized Sales Tax, HST. The previous GST rate of 5%, and RST rate of 9% remained in separate effect until April 1, 2013, at which time the province moved to a combined HST at a rate of 14%. IMPACT Services that were currently subject to GST that, as of April 1, 2013, were subject to the combined HST include the following examples: SEE PAGE 131 Administrative services only (ASO) contracts without stop loss insurance Salary Continuance Services and Absence Analytics and Support Health spending account (when it is the only ASO arrangement) Services that were exempt from GST will continue to be exempt from the combined HST. Examples of these exempt financial services include: Group insurance premiums ASO with stop loss insurance 19

21 TAXATION FEDERAL TAXABILITY STATUS OF PREMIUMS AND BENEFITS The Federal Government announced that effective January 1, 2013, Accidental Death & Dismemberment premiums and Critical Illness premiums paid by the employer will be added to an employee s taxable income. Employers that pre-paid these premiums in 2012, still have to include them in the employee s 2013 taxable income. This change effects all provinces except for Quebec. In Quebec, premiums paid by the employer are already included as taxable income and as such, see no change. A full breakdown of the taxability status of all employer contributions made towards premium rates under group insurance plans and government programs, as well as the taxability status of benefits received under these plans can be found in the chart on page 133 of the full Guide to Canadian Benefits Legislation. SEE PAGE 133 IF EMPLOYER PAYS THE PREMIUM FOR: Basic Life included in taxable income included in taxable income Dependent Life included in taxable income included in taxable income Accidental Death & Dismemberment not included in taxable income included in taxable income Critical Illness not included in taxable income included in taxable income 16

22 GENERAL LEGISLATION FEDERAL UPDATES CLC AMENDMENTS INCREASING FINES AND REQUIRING FEDERAL EMPLOYERS TO INSURE LTD PLANS Effective July 1, 2014, there will be CLC amendments to sections 434 to 439 of the Jobs, Growth and Long-term Prosperity Act ( JGLPA ). increase fines and also require Federal employers to insure LTD plans. The JGLPA is omnibus legislation giving effect to certain initiatives contained in the federal Budget Sections 434 to 439 amend the Canada Labour Code ( Code ) to, among other things: require every federal employer that provides benefits under a long-term disability plan to its employees to insure the plan, on a go-forward basis, with an entity that is licensed to provide insurance under the laws of a province, subject to any prescribed exceptions; and increase the maximum fines for violations of the minimum standards established under Part III (Standard Hours, Wages, Vacations and Holidays) of the Code. NURSING ACT AMENDMENT Effective January 1, 2014, section 4.5 of the Nursing Act, 1991 came into force, adding dispensing a drug to the list of authorized acts a member, other than a member described in section 5.1 of the Act ( certain authorized nurses ), is conditionally authorized to perform in the course of engaging in the practice of nursing. To view amended section of the Nursing Act, 1991, please visit: english/2009/elaws_src_s09026_e.htm 21

23 GENERAL LEGISLATION HEALTH INSURANCE PLANS ONTARIO HEALTH INSURANCE PROGRAM (OHIP) KINESIOLOGY BECOMES A REGULATED PROFESSION IN ONTARIO On April 1, 2013, under the Regulated Health Professions Act (1991) and the Kinesiology Act (2007), kinesiology has become a regulated health profession in Ontario. Kinesiologist will become a restricted title as only licensed members of the College of Kinesiologists will be able to hold that title. As a result of this, to become a member of the Ontario Kinesiology Association, all Kinesiologists must also be members of the College of Kinesiologists in Ontario. The College is in the process of preparing a list of licensed kinesiologists who will be recognized under the new regulatory requirements. TRANSITIONAL COUNCIL OF THE COLLEGE OF TRADITIONAL CHINESE MEDICINE PRACTITIONERS AND ACUPUNCTURIST PUBLISHED A LIST OF PRACTITIONERS WHO MET REGULATORY REQUIREMENTS FOR PRACTICING ACUPUNCTURE On April 1st, 2013, the Transitional Council of the College of Traditional Chinese Medicine Practitioners and Acupuncturists of Ontario published a list of practitioners who met the regulatory requirements for practicing acupuncture in Ontario. Only those acupuncturists who appear on the published list will be considered eligible providers for claims reimbursement in Ontario. It is critical to understand that even though past claims for an acupuncturist may have been covered, future claims for the same acupuncturist will be declined if they are not registered and recognized by the College on the published list. This list is available at: 22

24 GENERAL LEGISLATION PENDING LEGISLATION EMPLOYMENT STANDARDS - LOA ONTARIO On March 5, 2013, the Ontario government introduced new legislation which, if passed, would create three new jobprotected leaves. The Employment Standards Amendment Act (Leaves to Help Families), 2013, proposes new leaves that build on the existing Family Medical Leave under the ESA. They are as follows: Family Caregiver Leave - up to 8 weeks of unpaid leave for employees to provide care and support to a family member with a serious medical condition. Critically Ill Child Care Leave up to 37 weeks of upaid leave to provide care to a critically ill child (under the age of 18). Crime-Related Child Death and Disappearance Leave - up to 52 weeks of unpaid leave for parents of a missing child (under the age of 18) and up to 104 weeks of unpaid leave for parents of a child that has died as a result of a crime. If passed, the leaves would allow parents and other family caregivers to provide care and support for loved ones without fear of losing their jobs. These leaves are in addition to the current Family Medical Leave, which is available when a family member has a serious medical condition with a significant risk of death occurring within 26 weeks. A doctor s note would be required for the Family Caregiver Leave and the Critically Ill Child Care Leave. Complementing the new federal Bill C-44 Helping Families in Need Act, employees covered by the Critically Ill Child Care Leave and the Crime-Related Child Death and Disappearance Leave would be eligible to apply for federal Employment Insurance benefits. For more information regarding this pending legislation, please see the Ontario s government s news release and backgrounder online at the website listed below. It is anticipated that this legislation will reach Royal Assent and become law in Manitoba has already put these leaves in place and we expect to see all the provinces follow suit and enact similar leave programs in response to the Federal Bill C-44 regulations. 23

25 OTHER UPDATES NEW CSA STANDARD CSA STANDARD - PSYCHOLOGICAL HEALTH & SAFETY IN THE WORKPLACE On January 16, 2013, the Mental Health Commission of Canada (MHCC), the Bureau de normalisation du Québec (BNQ), and CSA Group officially released Canada s first national standard designed to help organizations and their employees improve workplace psychological health and safety. The National Standard of Canada titled Psychological Health and Safety in the Workplace - prevention, promotion and guidance to staged implementation - is a voluntary standard focused on promoting employees psychological health and preventing psychological harm due to workplace factors. The Standard provides a systematic approach to develop and sustain a psychologically healthy and safe workplace, including: The identification of psychological hazards in the workplace; The assessment and control of the risks in the workplace associated with hazards that cannot be eliminated (e.g. stressors due to organizational change or reasonable job demands); The implementation of practices that support and promote psychological health and safety in the workplace; The growth of a culture that promotes psychological health and safety in the workplace; The implementation of measurement and review systems to ensure sustainability. Implementation of a CSA standard is voluntary unless a jurisdiction formally adopts it into law. However, employers should take note of this new Standard as other CSA releases have been adopted as benchmarks (setting legal precedence), where courts and arbitrators will use the CSA standard as a best practice model to evaluate an employer s due diligence in promoting health and safety. The Standard is intended to provide structure and guidance to employers, employees, union representatives, or HR representatives who are interested in protecting and promoting psychological health and safety in the workplace. As such, The Williamson Group recommends that all organizations familiarize themselves with this standard and the related resources as part of their commitment to employee health and wellness. The Standard has been approved by the Standards Council of Canada as a National Standard of Canada. An overview of the Standard, and a link to download a free copy of the standard is available at the following website: z /?utm_source=redirect&utm_medium=vanity&utm_content=folder&utm_campaign=z1003 Or by searching the following within Google: CAN/CSA-Z /BNQ /

26 CONTACT THE WILLIAMSON GROUP 225 King George Road Brantford, Ontario N3R 7N7 Canada Tel Local: Toll Free: williamsongroup.com