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Inclusive Benefits: Weight Management and Chronic Disease Support

Posted on by Immix Group

Weight Management as a Benefits Priority: What Canadian Employers Need to Know

Obesity in Canada: A Rising Concern for Employers

Excess weight and obesity now affect roughly one in three Canadians, a trend that continues to rise and presents growing challenges for both employees and employers seeking to foster a healthy workforce.

Over the past couple of years, weight loss medications have come into the spotlight and at the Immix Group we have heard from employers and plan members seeking information on drugs from Ozempic to Saxenda and more. 

Not only is this a new FAQ for our team, it’s a topic of discussion with our supplier partners, as they navigate the inclusion or exclusion of these sought after medications.

This raises an important question for organizations:

“As an employer, what is the right and sustainable way to handle obesity and weight management in our benefits plan?” 

In recent years, insurance providers have begun to address weight management more directly, offering employers multi-pronged approaches that go beyond traditional “healthy living” campaigns. These initiatives now include targeted programs, therapies, and prescription medications for weight management, bringing the topic more openly into discussions about employee health.

Why Employers Should Think about Weight Management Within Benefits Programs

Supporting weight management in the workplace is more than a wellness initiative—it’s a strategic investment in employee health, productivity, and organizational culture. Nearly one in three Canadians is affected by excess weight or obesity, which the Canadian Medical Association (CMA) recognizes as a chronic, relapsing disease with complex causes, including genetics, environment, metabolism, and behaviour and not merely a lifestyle choice. This distinction matters because it underscores that obesity requires ongoing management, much like diabetes or hypertension, and has measurable implications for employers.

 

The impact of obesity on the workplace is significant

Productivity and absenteeism: Obesity and related comorbidities are strongly linked to increased absenteeism and reduced productivity (presenteeism). Employees managing obesity-related conditions may need more time off or may be less able to perform at full capacity.

Mental health: Employees living with obesity are more likely to experience stress, depression, and anxiety. Workplace stigma can exacerbate these mental health challenges, further affecting engagement and performance.

Comorbidities and health costs: Obesity is associated with numerous chronic conditions, including:

    • Type 2 diabetes
    • Hypertension
    • High cholesterol
    • Fatty liver disease
    • Heart disease
    • Sleep apnea
    • Certain cancers
    • Depression and anxiety

Because chronic diseases drive significant costs in benefit plans, addressing obesity proactively can help control long-term healthcare spending, including both medical claims and drug coverage inflation.

Why it makes sense for employers to invest:

  • It’s a chronic disease, not a personal failing: Recognizing obesity as a medical condition shifts the focus from blame to support, promoting an inclusive and compassionate workplace.
  • Measurable ROI: Programs that help employees manage weight can reduce absenteeism, enhance productivity, and lower health-related costs over time.
  • Culture and engagement: Supporting employee well-being—including weight management—demonstrates that the organization values health, inclusivity, and mental wellness. This can boost morale, retention, and overall workplace engagement.

Investing in weight management is therefore both a human and business imperative. By addressing obesity in a structured and supportive way, employers can help employees improve their health, mitigate chronic disease risks, and ultimately create a more productive and resilient workforce. Beyond the business case, it is an investment in employee wellbeing and reflects an organization’s commitment to being inclusive and caring.

 

Solutions for Employers: Supporting Weight Management Through Benefits

Effectively addressing weight management in the workplace requires a multi-faceted approach. Weight gain is influenced by numerous factors beyond diet and physical activity, including stress, genetics, medications, environmental conditions, and socio-economic circumstances. Employers who recognize these diverse influences and provide comprehensive benefits are better positioned to support employee health, productivity, and engagement.

Prescription Weight-Loss Medications

Prescription medications for chronic weight management have become an increasingly visible part of benefits discussions. While many group insurance contracts explicitly exclude anti-obesity drugs, employers can request coverage for these medications with some providers (usually at an additional cost).

The number of prescriptions for weight-loss drugs in Canada has grown dramatically: from 250,000 in 2019 to 2.7 million in 2023, an 82% annual increase, largely due to the wider availability of new medications. Costs are rising correspondingly, with weight-loss drugs representing a growing share of employer drug plans.

Key medications available in Canada include:

Weight loss medications work similarly to reduce appetite, increase feelings of fullness, and slow stomach emptying. Some work in the brain or digestive pathways.

  • Saxenda (liraglutide) – GLP-1 receptor agonist, daily injection. Approved for chronic weight management since 2015. Similar to the diabetes drug Victoza but at a higher dose. Often available under employer drug plans.
  • Mounjaro / Zepbound (tirzepatide) – Dual GIP/GLP-1 receptor agonist, weekly injection. These are the same molecule, but different brands. Zepbound is approved for chronic weight management and type 2 diabetes (as of July 2025) whereas Mounjaro is only approved by Health Canada for type-2 diabetes. Stated to produces more weight loss than Saxenda or Ozempic. 
  • Contrave (naltrexone + bupropion) – Oral medication, taken twice daily. Targets brain pathways affecting appetite and cravings. Approved for chronic weight management.
  • Xenical (orlistat) – Lipase inhibitor, oral, taken three times daily with meals. Reduces fat absorption; gastrointestinal side effects possible. Approved for chronic weight management.
  • Wegovy (semaglutide) – GLP-1 receptor agonist, weekly injection. Same active ingredient as Ozempic but approved specifically for chronic weight management.
  • Ozempic (semaglutide) – GLP-1 receptor agonist, weekly injection. Approved for type 2 diabetes; often used off-label for weight loss but not approved for this use in Canada.

 

Ozempic is likely the most well-known of these drugs but it must be stressed that like others, it is not approved as a weight loss medication in Canada; it is a Special Authority Drug used in the treatment of Type 2 diabetes. Only those who are approved via the Special Authority process in BC are eligible for coverage for Ozempic.

Which weight loss drugs are covered by which insurance providers in Canada?

Like many aspects of an employee benefits program, the exact coverage under an employer plan depends on the plan design selected by the employer and the policy of insurer. Some providers have chosen to exclude specific drugs. Reasons vary, but generally, insurers will often exclude a drug if there is an alternative drug they feel has the same efficacy.

Obesity Canada states that fewer than 20% of private insurance plans cover obesity medications.

Coverage for these medications varies by plan and insurer, and access can be complex. Employers should work closely with their benefits advisory team to ensure there is clear understanding of options.

For example, RBC Insurance for October 2025 removed weight loss drugs as part of standard drug coverage, however they can still be included as an optional add-on. To include coverage they advised a 2.25% increase to EHC rates for $2K annual maximum reimbursement.

Pacific Blue Cross currently takes a similar approach, in that it is an add-on to a standard drug formulary.

These two insurers differ with the specific drugs they will cover, however, please note that we expect many changes in this area of benefits in upcoming years.

 

Non-Drug Supports: Supporting the Whole Person

Weight management is more than medication. Effective benefits programs integrate resources that address the physical, psychological, and lifestyle factors influencing weight. These may include:

  • Paramedical services: Coverage for dietitians, psychologists/CBT, physiotherapists, and kinesiologists to support nutrition, emotional health, and physical activity.
  • Employee and Family Assistance Programs (EFAP): Counseling, stress management, and resources for emotional eating or obesity-related challenges.
  • Health spending accounts (HSA) or wellness accounts: Can be used for personal trainers, gym memberships, fitness equipment, or wellness programs.
  • Equipment and medical supplies: Coverage for CPAP machines for sleep apnea, diabetes monitoring equipment, or other obesity-related medical devices.
  • Healthy Living Rewards Programs: many programs exist or can be managed in-house to encourage and reward employees to make healthy choices. Step challenges, sleep or nutrition-based activities all can play a role.

 

By offering a comprehensive, multi-pronged benefits approach, employers can help employees manage weight safely and sustainably, reduce absenteeism and presenteeism, improve mental health, and support an inclusive, caring workplace culture. These strategies not only improve employee well-being but can also deliver measurable ROI by reducing chronic disease-related costs and supporting long-term productivity.

 

Solutions:

Effectively addressing weight in the workplace requires looking beyond diet and exercise alone. Numerous factors contribute to weight gain, including stress, genetics, medications, environmental influences, and socio-economic conditions. Recognizing these diverse influences is key to designing benefits that genuinely support employees’ health and well-being.

Plan design, risk and fairness: what employers should think about before deciding on weight loss drug coverage

At the Immix Group, our perspective is that employers should cover weight loss medications as part of a comprehensive benefits program. While there is a cost to including these drugs, it can be argued that supporting weight loss through medications can have a positive impact on overall health, especially considering the comorbidities that accompany obesity.

Balancing fairness, access, and plan sustainability

The cost of a benefits program can be a significant investment for businesses. By working with your advisor to thoughtfully design coverage, employers can:

  • Support employee health with access to clinically approved therapies
  • Reduce long-term health costs associated with obesity-related comorbidities
  • Promote equity and inclusivity in their benefits offering

 

Insurer safeguards and clinical criteria

Making the decision as an employer to include obesity management medications does not mean that all employees will suddenly have full access to these drugs and therapies. Insurers commonly use prior authorization and clinical criteria to manage plan risk. These may include:

  • Minimum BMI thresholds or documentation of weight-related comorbidities
  • Verification of medical necessity by a healthcare provider
  • Defined treatment plans or monitoring requirements

 

These safeguards help control costs while ensuring medications are used appropriately for those with a clinically recognized need.

As mentioned previously, currently fewer than 20% of plans include weight loss medications, despite the fact that obesity is recognized as a chronic, relapsing disease with significant health consequences. Our opinion at the Immix Group is that employers must tread carefully when choosing to exclude specific items, therapies or drugs. Structured, evidence-based coverage can strike a balance between access, fairness, and sustainability.

 

Communicating Weight-Management Benefits Thoughtfully: Tips for Employers

It’s important to remember that stigma surrounding obesity remains a serious concern. Many individuals who struggle with weight face misunderstandings or judgment that can negatively affect both their mental and physical health. A thoughtful benefits strategy must therefore balance effective interventions with support and sensitivity, creating an environment where employees can pursue healthier lifestyles without fear of bias or shame.

As employers consider how to support obesity management within their benefits program, communication must be clear, neutral, and sensitive. Because obesity is a chronic, relapsing condition, framing it as part of your broader health and chronic-disease strategy—rather than a lifestyle issue—is key to reducing stigma.

Consider the following, as you decide your approach as an employer:

  • Use simple, respectful language such as “obesity management” or “clinically appropriate treatment,” and avoid framing weight as a matter of willpower or personal choice. Reinforce that your intention is to support employee health, not appearance.
  • Be transparent about what is and isn’t covered, and why. Coverage depends on insurer policy, clinical criteria, and plan sustainability; explaining this context helps set expectations and ensures employees understand that decisions are made fairly and consistently.
  • Privacy is essential. Clarify that accessing treatment is voluntary, confidential, and determined between the employee, their healthcare provider, and the insurer—not the employer.
  • Finally, emphasize a whole-person approach. Weight is influenced by many factors, and support often extends beyond medication. Highlight available resources such as dietitians, psychologists, EFAP services, wellness or health spending accounts, and coverage for conditions linked to obesity. Positioning these supports together reinforces that your benefits program aims to meet employees where they are and provide meaningful, respectful care across the full spectrum of health needs.

 

Work with your advisor to develop an effective, thoughtful strategy

Addressing weight management within a benefits plan requires balancing employee health needs with plan sustainability, fairness, and evolving insurer policies. With obesity recognized as a chronic disease—and new therapies reshaping expectations—employers should consider a comprehensive approach that includes medication coverage, non-drug supports, and sensitive communication that reduces stigma and protects privacy. Because coverage options, clinical criteria, and cost impacts differ widely across insurers, employers should work closely with a knowledgeable benefits advisor. At the Immix Group, we help you navigate plan design, assess risks, and build an approach that supports employees while keeping your program sustainable.

Key takeaways:

  • Obesity is a chronic disease affecting one in three Canadians and has significant workplace impacts, including absenteeism, mental health, and comorbidities.
  • Supporting weight management through benefits is both a health and business strategy, improving productivity, engagement, and long-term costs.
  • Coverage options vary widely by insurer and plan; prescription medications may be included as an optional add-on with clinical criteria.
  • Non-drug supports—such as dietitians, mental-health resources, EFAP, and wellness accounts—are critical for a whole-person approach.
  • Employers should work closely with a benefits advisor to design fair, sustainable, and inclusive weight-management programs.

FAQ’s:

Why should employers address weight management in their benefits plan?
Obesity is a chronic disease linked to productivity loss, absenteeism, mental health challenges, and comorbidities. Supporting employees’ weight management is both a health and business investment.

Which weight-management medications are available and covered in Canada?
Health Canada has approved drugs including Saxenda, Zepbound, Wegovy, Contrave, and Xenical for chronic weight management. Drugs such as Ozempic are approved by Health Canada only for type 2 diabetes; use for weight loss is off-label. Coverage varies by insurer and plan, often requiring prior authorization and clinical criteria.

Are weight-loss drugs included in most private insurance plans?
No. Fewer than 20% of Canadian private plans cover obesity medications, and coverage may require additional costs or optional plan add-ons.

What non-drug supports can employers provide for weight management?
Supports include dietitians, psychologists/CBT, physiotherapists, kinesiologists, EFAP services, health or wellness spending accounts, and coverage for obesity-related medical equipment.

How should employers communicate weight-management benefits to employees?
Use neutral, non-stigmatizing language, emphasize health rather than appearance, explain what is covered and why, maintain privacy, and highlight a whole-person approach.

 

Read More:

 Managing your obesity | Obesity Canada

Obesity in adults: a clinical practice guideline | CMAJ

Managing Obesity: A Shared Commitment

Managing obesity: a shared commitment

Weight Management Program Teladoc Medical Experts

GLP-1 Drug Coverage Continues to Rise in Canada

Lindsay Byrka

Lindsay Byrka, CFP® BA, BEd

Vice President, Immix Group: An Employee Benefits Company
A Suite 450 – 888 Dunsmuir St. Vancouver V6C 3K4
O  604-688-5262 

E lindsay@immixgroup.ca
W www.immixgroup.ca

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Six Common Benefits Plan Mistakes that can Cost Employers

Posted on by Immix Group

by Lindsay Byrka, CFP® Vice President, Immix Group

 

Part of our role as benefits advisors in Canada is advising employers on their responsibilities when it comes to the ongoing management of their benefits program–enrolment, terminations, updates, communication to employees, taxation of benefits and rules for benefits under the Employment Standards Act here in Canada.

When we first work with a new client, our benefits audit often uncovers the cumulative impact of administrative oversights, errors, or misunderstandings. These mistakes can have serious consequences: wasted benefit dollars, gaps in coverage, higher premiums, non-compliance with contracts, and in the worst cases, the death or disability of an employee who believed they were insured when they were not.

Below are six common pitfalls that can create serious problems for your benefits program.

1: Lack of Diligence with Daily Benefits Administration: Missed Enrolments, Late Enrolments, Failure to Terminate Benefits

There can be serious repercussions to not being timely with administration. And while Employers will often blame the employee for not completing their side of the enrolment process, it is ultimately the employer’s responsibility to ensure the rules of enrolment are followed.

  • Employees must be added and removed from the benefits plan based on the timelines laid out in the insurance contract.
  • Following enrolment rules protects the plan from anti-selection — when someone waits to sign up for coverage until they anticipate a large claim. This drives up claims costs and breaches your contract with the insurer.
  • Most programs have a waiting period (often three months) before benefits start, with a typical 30-day grace period for enrolment; some providers allow for longer than this.
  • If a member is not enrolled on time, they are deemed a late applicant which is an official term describing someone who has been enrolled after the expiration of the grace period. Late applicants may be subject to medical underwriting and may be denied coverage. Insurers all follow similar guidelines.

Not ensuring an enrolment is processed in time can have legal consequences

In a well-known case, the employer was found liable for not enrolling an employee on time, who later died. The court found that the employer did owe a duty of care and had implied contractual obligations. The employer should have provided the employee with sufficient information about the coverage, timelines and consequences of failing to apply. Damages were reduced by 50% due to the finding that the employee was partially responsible for not completing the enrolment document on time.

Terminations must also be processed on time

It is common to discover through a benefits audit that members are still active on the program, who should have been terminated. When a termination needs to be backdated, most insurers have a maximum number of months for which they will refund premiums. Former employees often continue to claim under their former employer’s benefits program. And, commonly, premiums will only be backdated to the date of the last claim. The impact of untimely administration on a group plan can be costly.   

How can employers ensure diligent benefits administration?

  • Train plan administrators thoroughly to ensure they understand rules and potential repercussions
  • Use of checklists for onboarding and offboarding and HRIS alerts if available
  • Working closely with benefits advisors for support and education
  • Review invoices regularly for accuracy

2.Not Adhering to Eligibility Rules: Who is on your Benefits Plan?

Unfortunately, it’s very common to learn an employer has been paying premiums and absorbing claims for people who are not eligible to be insured on the benefits program. This includes:

  • Part-time employees not meeting the minimum hours
  • Former employees
  • Seasonal employees
  • Contractors who are ineligible
  • Ex-spouse/partner(s) dependent children
  • People who do not meet the definition of a ‘dependent’ for the purposes of benefits coverage (i.e. extended family members, cousins, nieces, nephews etc.)
  • People who are in some way connected, but are not actively employed and working for the plan sponsor

Conversely, eligible employees are sometimes not enrolled due to misunderstanding rules or opting out when participation is mandatory.

Is it Dishonesty or a Lack of Understanding?

In some instances, ineligible members are on plans due to dishonesty on the part of the employee or employer, but more often, it’s a lack of understanding of the rules. For example, we often learn of people ‘opting out’ of the benefits plan when the program requires mandatory participation.

While there are ways to structure programs to accommodate things such as reduced participation levels or classes for contractors, this has to be done intentionally and with the insurer’s approval. Depending on the structure of your organization, it can be worth conducting an audit to investigate and uncover any ineligible members or eligible but not enrolled employees.

There can be major repercussions to ignoring eligibility criteria.

We encountered a scenario where a former owner of a small business was kept on the benefits program under a handshake agreement. This person was no longer officially affiliated with the company. When he passed away, his family was expecting to receive the large life insurance payment through the group benefits program. Through the life insurance claim, it was discovered that this person was not eligible for the program. Despite the premiums being paid for many years, the claim was denied.

How to avoid eligibility issues:

  • Understand the eligibility requirements and rules, per your contract. If contractual changes need to be made, work with your advisor to create classes, change hours or otherwise adapt the program.
  • Designate a time for plan administrators to periodically review who is insured. Plan renewal or the beginning of the year are good times to do a deep dive on enrolment.
  • Regularly review of invoices is critical to ensure enrolment and billing accuracy.

3. Failing to Regularly Update the Insurance Provider and Advisor with Current Information

In addition to keeping on top of enrolments, terminations and eligibility criteria, it’s important to keep on top of other changes. Plan administrators need to provide the following, either annually or when the change occurs:

  • Updates related to the company structure; affiliated companies, name changes etc. Employees must be paid through the company named as plan sponsor or listed as an affiliated entity.
  • Updates to salaries, to ensure salary-based benefits are properly calculated.
  • Updates to occupation titles, and accordingly, the correct class of benefits for the member.
  • Proper adherence to rules surrounding benefits and maternity leave
  • Any changes to dependents (new spouse or child, student status).
  • Correct hours worked to ensure ongoing eligibility.
  • Updates to company banking to ensure premiums are paid, to avoid claims payment suspension.
  • Contribution amounts for group savings plans and health spending accounts.
  • Beneficiary designations; it’s crucial to remind employees to ensure the correct person is named.

How employers can prevent negative outcomes from outdated information:

  • Ensure all changes to business structure are communicated in a timely manner.
  • Plan administrators must routinely remind employees to report changes using checklists.
  • Of particular importance, regularly remind members to review beneficiary designations.

Failing to ensure members have an updated named beneficiary can have dramatic consequences.

At the Immix Group, we routinely learn of situations where the person named as the beneficiary is no longer the correct person (typically, an ex-spouse or partner). We have witnessed countless situations where an ex-partner received notable sums of money in death benefits or RRSP funds due to an outdated beneficiary designation on record. This is despite the existence of a current spouse and children for the deceased plan member, and a Will.

Unfortunately, a named beneficiary is legally entitled to the funds; it is nearly impossible to reverse. While we hope the recipient will ‘do the right thing’ and pass the funds to the family, this rarely happens. It’s very emotional, and totally avoidable.

Not updating salaries on a routine basis can impact member benefits.

In a similar situation, an employer failed to submit salary updates for multiple years. A member went on Long Term Disability and was dismayed to learn their monthly benefit was based on a salary that was significantly lower than their current earnings. The result was receiving $3,000 a month in LTD instead of $4,500 per month, an impactful difference to the disabled claimant.

This leads us to the next common pitfall; not properly educating staff on their coverage details.

4.Poor Communication of Plan Design Features and Processes

Employers may find themselves at risk if they fail to properly communicate their employee benefits plan design features to their employees. This could lead to employees bearing costs out-of-pocket, when this could be prevented. In an extreme scenario, employees who are misled with regards to coverage could potentially pursue legal action against their employer.

Some common areas where misunderstanding can lead to out-of-pocket expenses:

  • Emergency out-of-country travel claims: First, ensure you understand any pre-existing conditions clauses within your group benefits policy before you travel, to avoid a denied claim. Second, ensure a claim is opened immediately. Paying out-of-pocket can result in reimbursement being less than expected and can be very time-consuming. Insurance carriers often negotiate lower claim costs when working directly with the medical facility and will also coordinate payment with the provincial plan in the employee’s province of residence, where applicable. You want to engage the travel insurance provider at the earliest opportunity, to have the smoothest outcome.
  • Pre-Authorization for costly services: always obtain a pre-authorization for more expensive items such as certain dental work, custom braces, or where otherwise required by your insurance provider.
  • Duration limits for coverage: there are many benefits that have time limits attached to reimbursement eligibility. Two common areas are routine dental visits (dental recall is typically 6 months, but 9 months is sometimes used) and vision care, which commonly provides a dollar amount per 24 months period. In addition to this, many other items have time durations imbedded into the benefits coverage.

How can employers ensure employees understand the details of their coverage?

  • Ensure routine Employee Education Sessions are held to relay important details of coverage and processes to staff.
  • Education sessions should be held at minimum on an annual basis.
  • Ensure distributed documents and forms are up to date.

5. Not Paying Attention to Payroll Deductions and the Tax Status of Benefits

In Canada, benefits are taxed differently depending on who pays the premium (employer or employee via payroll deduction).

There are two things to consider- whether the premium is a taxable benefit to the employee (included on the T4 and taxed as income) or whether the payment of a benefit itself would be taxed in the hands of an employee receiving the benefit.

Most employers aim to organize payroll deductions to avoid taxable benefits, where possible. Looking to the most common benefits on a typical benefits program, the taxation is as follows:  

  • Life Insurance, Accidental Death and Dismemberment, Dependent Life Insurance and Critical Illness insurance: Any benefit paid is not taxable, regardless of who pays the premium. If these benefits are Employer-paid, the premium is a taxable benefit for the employee.
  • Short Term Disability and Long Term Disability: Any premium paid by the Employer is not a taxable benefit to employee. If the Employer pays the premium, the benefit in the event of a claim is taxable as income to the employee.
  • Extended Health Care and Dental Care: Regardless of who pays the premiums, the benefits are not taxable.

Read more in our Taxation of Benefits Guide, including how different types of Health and Wellness Spending Accounts are taxed.

Oversight of payroll deduction details can have a negative tax implication.

Consider the scenario where the employee is paying a certain percentage of the premium as a payroll deduction. It is possible the payroll deduction could be inadequate to cover the full Long Term Disability premium, thereby leaving the employee potentially exposed to a taxable benefit in the event of a claim.

How can you prevent these costly taxation mistakes?

  • Consider the tax status of each benefit line when organizing cost-sharing arrangements.
  • Work with benefits advisors, payroll providers and accountants to ensure intended tax consequences are in order.
  • Simply reviewing the invoice in detail can shed light on potential issues with taxation.

6. Failure to Examine Rates, Premiums or Fees Associated with your Benefits Program

Most employers are aware that their benefits program undergoes an annual renewal, where the pricing is set for the year ahead. But are employers pay close attention to the details?

It is common to overlook certain details of the total cost of your benefits program.

  • Paying for benefits that are not used; this often comes in the form of add-on services or programs that may not have much value, such as a second Employee and Family Assistance Program, when the extended health benefit already includes a plan
  • Not paying close attention to the rate adjustments; are you having open and transparent conversations with your benefits advisor as to the rate adjustments, and why they are being implemented?
  • Third party administration fees; are you paying additional fees for administration that may be unnecessary? Partnering with the right benefits advisor or provider may eliminate the need for an additional TPA.
  • High advisor commissions; what commissions are being paid to your advisor? Commissions can vary and different levels are appropriate depending on the value provided by the broker, but advisors should be willing to disclose their compensation to their clients.

Partnering with a Qualified Advisor helps Employers to Avoid Costly Benefit Plan Oversights

At Immix Group, we handle the daily details of benefits administration and often catch errors or concerning situations before they escalate. Still, the accuracy and effectiveness of a plan ultimately depend on employers providing timely, truthful, and accurate information. Without the guidance of a qualified advisor, employers take on unnecessary risks, since we don’t expect SMBs to become benefits experts on their own.

A strong advisor provides more than just plan design — they act as a resource for training, reminders, reviews, and ongoing support for HR and plan administrators. This diligence helps save money and prevent costly mistakes. By partnering with the Immix Group, organizations gain the expertise and human support needed to avoid common pitfalls and ensure their benefits plan runs smoothly and cost-effectively.

Key Takeaways

  1. Stay on top of administration – Process enrolments, terminations, and updates on time to avoid denied coverage, legal issues, and wasted premiums.
  2. Follow eligibility rules – Only cover employees and dependents who meet plan criteria; audit regularly to prevent costly mistakes.
  3. Keep information current – Update business ownership details, salaries, dependents, job titles, and beneficiary designations to ensure benefits are accurate and payouts go to the right people.
  4. Communicate clearly – Educate employees on coverage, limits, and claim processes to prevent confusion, out-of-pocket costs, and legal risk.
  5. Manage payroll and tax implications – Ensure deductions and benefit arrangements are accurate to avoid creating unintended taxable benefits.
  6. Review rates, premiums, and fees – Monitor plan costs, adjust unnecessary services, and confirm advisor commissions to keep your benefits program cost-effective.

FAQ’s

  1. How can employers ensure timely enrolments and terminations?
    Employers should use onboarding and offboarding checklists, HRIS alerts, and work closely with their benefits advisor. Regularly reviewing invoices helps catch errors and ensures coverage starts and ends on time.
  2. How do employers ensure only eligible employees are covered?
    Understand the plan’s eligibility rules and conduct periodic audits. Confirm hours worked, employment status, and dependent eligibility. Adjust plan classes or participation levels with insurer approval if needed.
  3. What information should employers keep updated?
    Keep salaries, job titles, company structure, dependents, contribution amounts, and beneficiary designations current. Accurate information prevents reduced benefits, overpayments, or misdirected funds.
  4. How can employers ensure employees understand their benefits?
    Hold annual education sessions and provide clear, up-to-date guides. Highlight important processes such as pre-authorizations, emergency travel claims, and coverage limits to avoid confusion and out-of-pocket costs.
  5. How do employers avoid payroll and tax mistakes?
    Review payroll deductions and the tax treatment of each benefit. Collaborate with advisors, payroll providers, and accountants to ensure employees aren’t unintentionally exposed to taxable benefits.
  6. How can employers prevent overpaying for the plan?
    Regularly examine total costs, including add-on services, third-party administration fees, and advisor commissions. Transparency and guidance from a qualified advisor help keep the benefits program cost-effective.

Read More:

A Better Way to Do Benefits – Latest News from Immix Group

Your 2025 Employee Benefits Audit Checklist – Latest News from Immix Group

Taxation of Employee Benefits in Canada | Optimize Group Benefits

Understanding Travel Insurance – Latest News from Immix Group

2006 ABQB 146 (CanLII) | Grams (Estate of) v. Maple Leaf Metal Industries Ltd. | CanLII

2014 ONCA 123 (CanLII) | Baradaran v. Tarion Warranty Corporation | CanLII

Lindsay Byrka

Lindsay Byrka, CFP® BA, BEd

Vice President, Immix Group: An Employee Benefits Company
A Suite 450 – 888 Dunsmuir St. Vancouver V6C 3K4
O  604-688-5262 

E lindsay@immixgroup.ca
W www.immixgroup.ca

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