The Balancing Act on Employee Benefits

Keeping Your Group Plan Sustainable for 2026

If you’re a business owner, you know how tricky it can be to keep your employee benefits plan both affordable and competitive. The latest 2025 Benefits Canada Report confirms what many already feel — it’s getting harder every year.

Rising Costs, Rising Expectations

Most employers say their benefit costs have gone up again this year. At the same time, employees expect more support, not less — especially for mental health. The challenge? Even with greater investment in wellness, many workers still feel stressed and stretched thin.

In fact, employees who used up their benefits were also the ones reporting the highest daily stress levels. It’s clear that simply spending more on benefits doesn’t always lead to better results.

The Perception Gap

There’s also a growing disconnect between what employers think their teams need and what employees actually experience. Many plan sponsors believe less than 40% of their staff are managing chronic or lifestyle-related conditions — the real number is closer to 60%.

Meanwhile, over half of employees hit their annual coverage limits, and when they do, a third stop their treatments altogether until the plan resets. Unsurprisingly, most employees say cutting benefits isn’t acceptable — though some are willing to pay a bit more to keep them.

The Communication Miss

Another eye-opener: while 84% of employers think their benefit plan is good or excellent, only 71% of employees agree. That’s the widest perception gap since 2020. The result? Frustration, confusion, and sometimes mistrust — even when employers are doing their best.

Turning the Corner

So, where does that leave business owners? Maybe this is the moment to rethink what sustainability means. It’s not just about cutting costs — it’s about building a plan that people actually use and truly value.

That could mean:

Offering flexible coverage that adjusts to real needs.
Communicating clearly about what’s included and why.
Exploring creative funding models that balance affordability and adequacy.

When benefits align with what employees genuinely need, everyone wins — healthier teams, higher retention, and a more sustainable future.

💡 Let’s make your benefits plan work harder for your business.
If you’d like to explore options that fit your budget, support your team, and keep things sustainable for the long run, let’s connect. we would be happy to walk you through a few strategies that have worked well for other small and mid-sized employers. Contact us today.

*Information provided here is based on material provided by Blendable. Insurance Kit and those associated with the information on this website are not professional accountants, unless specified otherwise. Please always seek the advice of a professional accountant prior to making any tax or benefits related decisions.

Escape the Premium Marathon on Group Benefits

Guide to Smarter Health & Dental Coverage

Insurance is like a mysterious puzzle we all try to solve. We pay those premiums, crossing our fingers and hoping we never have to use it. But when it comes to health and dental insurance, the odds are stacked against us. Those check-ups and dental visits are inevitable - you can't escape them!

The Insurance Conundrum

You see, insurance is designed for those rare, catastrophic events that we pray never happen, the kind that makes you exclaim, "What are the odds?" The insurance company sits back, hoping you'll never need to call them. And in return, you keep paying those premiums, year after year, just in case.

Health and Dental Costs: Frequent Flyers

Unlike the elusive, once-in-a-lifetime calamities insurance loves to cover, health and dental costs are like clockwork - they happen regularly and predictably. So, when insurance companies try to insure these everyday expenses, they've got to find a way to recoup their dough. And guess who's left holding the bag? That's right, it's you, dear premium payers!

The Never-Ending Premium Hike

It's an unfortunate truth - when health and dental benefits are insured, those premiums just keep going up and up. It's like they're competing in a never-ending marathon race, except there's no finish line in sight. Once in a wild blue moon, they may decide to give your wallet a break and lower those pesky premiums.

Enter the Heroic Blended Benefit Plans

But fear not, for there is a glimmer of hope in the realm of benefits - instead of paying for benefits you never even get to use, these plans are all about reality - the actual claims, plus a modest admin fee. Here are the two main types:

Enhanced Health Blends (EHB)

Here's how it works: You, the wise plan sponsor, get to set up service limits in any way you please. You pay for the actual claims, while leaving the heavy lifting to the insurance wizards (or as we call them, the plan administrators). It's just like an insured plan, but without the premium shenanigans!

Health Spending Accounts (HSAs)

The Superheroes of Flexibility. Imagine a bank account tailor-made for each plan member - that's what HSAs bring to the table. You get to set your budget and contribute funds for each team member, which, by the way, are tax-deductible for your business.

But wait, it gets even better! Your superhero team members can use their HSA funds for any eligible medical expenses that tickle their fancy. Whether it's dental checkups, relaxing massages, or prescriptions to battle the office flu, they've got the power to choose.

Remember, insurance might be great for safeguarding against those "knock-on-wood" events, but when it comes to the everyday stuff, a well-designed benefits plan empower them with more control, and shows them you are a boss that worth sticking around for.