More than one of five Canadian employers would consider providing coverage for employee health care services already provided by the government, according to a new study.

In response to a Supreme Court of Canada ruling last year (BI, June 20, 2005) that struck down Quebec's ban on private insurance for health care services already covered by the province, Toronto-based benefit consulting firm Morneau Sobeco asked employers if they would consider offering coverage for these health care services. Twenty-two percent of surveyed employers said they would consider providing the coverage, according to the firm's 2006 compensation trends and projection survey.

Fewer Canadian employers are concerned about rising health care costs, with the number of employers expressing concern declining to 50% this year from 58% last year, due to a health care cost inflation rate that is now primarily in the high single digits rather than the double-digit rates of previous years.

"The health care cost inflation rate is a little lower than it used to be," said Andre Sauve, a partner and actuary in the firm's Montreal office. "People are still concerned about it, but it's not as bad as it has been."

The number of employers considering or introducing employee cost-sharing to deal with rising health care costs dropped to 16% in this year's survey from 18% in the 2005 survey. Thirty-one percent of employers offered health spending accounts this year, up from 28% in 2005.

Although the cost of disability management plans remains a key issue for employers, the number of organizations expressing concern over these costs declined to 32% this year from 35% last year. Only 23% of employers said they would review their disability management practices, down from 27% in 2005.

Meanwhile, the percentage of employers concerned about future pension costs increased slightly to 23% in 2006 from 21% in 2005, according to the survey.

For the first time, the survey this year asked employers with defined benefit plans if their plans were closed to new members, with 30% of employers saying the programs were closed. "That's quite a bit," Mr. Sauve observed.

The percentage of Canadian employers offering employee assistance programs remained steady at 85%.

The number of organizations offering wellness programs increased significantly, with 42% of employers reporting that they have wellness programs, up from 33% in last year's survey and 24% in 2001.

The survey, which gathered responses from 353 employers in Canada, is not yet available but likely will be so within 10 days, Mr. Sauve said. It can be obtained by emailing the firm at compsurvey@morneausobeco.com.