As healthcare costs rise and public systems grow increasingly strained, Canadian employers are emerging as a critical lifeline for access to care.
Jennifer Schmidt (pictured), partner at Mercer Marsh Benefits, says that amid affordability concerns and workforce stress, employers now have both the opportunity and the responsibility to step up. But doing so effectively means rethinking old models, embracing smarter benefit strategies, and building trust through credible, accessible support.
A system under pressure – and a growing trust gap
Canada’s healthcare system is facing a crisis of affordability and access, particularly for those with health conditions or disabilities. According to Schmidt, people with disabilities are more than twice as likely to feel uncertain about affording the care they need. With an estimated 8 million Canadians living with a disability – and even more managing chronic health conditions – this reality has far-reaching implications.
“If people aren’t healthy, they can’t be productive,” Schmidt told Insurance Business. “Healthy employees are more engaged."
Yet as public wait times grow and costs mount, the private sector is increasingly being asked to fill the gap. And that, Schmidt argued, puts employers in a good position to act.
She added that trust alone isn’t enough. Employers must also offer real, practical access. That includes not only traditional benefits but also new tools to shorten wait times and ease cost burdens – such as virtual healthcare, internet-based cognitive behavioral therapy (iCBT), digital physiotherapy, and accessible drug programs.
Delays in care have become alarmingly common. According to Schmidt, 84 percent of employees have delayed treatment. While some cite financial barriers, others assume they can self-treat or are discouraged by long wait times. This, she said, is where employers can step in with solutions that are both convenient and credible.
Access is only one side of the equation. Encouraging people to actually use the care that’s available is just as important – and that requires building awareness and simplifying the experience.
“Employers are trusted to provide credible options,” Schmidt said. “It’s not just about the dollars and cents – it’s about guiding people to take care of themselves.”
One approach is offering a centralized digital portal that puts all benefits – internal and external – in one place. This could include not only core coverage, but also employer-sponsored sabbaticals, study time, or even vetted financial wellness tools like budgeting apps.
“When a company offers something useful that doesn’t even cost money, it changes how people feel,” she said. “It makes employees feel seen. It makes them feel like more than just a number.”
This is especially important at a time when employees increasingly feel replaceable. Mercer’s global talent trends data shows that two in five workers believe they’re more replaceable and less valued than they were four years ago.
Communicating value, Schmidt said, matters as much as delivering it. A well-designed benefits program won’t make an impact if employees don’t understand or engage with it. That’s why employers must prioritize how they communicate offerings – making sure information is accessible, clear, and tailored to their workforce’s needs.
Whether through mobile-friendly tools, multilingual materials, or centralized digital portals, strong communication helps employees recognize the real value behind their benefits. Without it, even generous programs risk being misunderstood or underused – reducing their effectiveness and failing to support retention and wellbeing goals, she says.
Today’s HR teams are also under strain. In addition to managing benefits, they’re dealing with geopolitical unrest, economic instability, and climate-related risks – all of which have direct effects on employee well-being.
“You’re expected to support both your business and your people,” Schmidt said. “HR is now everything – including risk management.”
She pointed out that unhealthy, disengaged employees pose a risk to business continuity. That’s why it’s essential for employers to invest not just in benefits, but in a strategic, sustainable approach to health and wellness.
Amid economic uncertainty, some employers worry about rising benefit costs. But Schmidt believes the solution isn’t necessarily spending more – it’s spending smarter.
“It’s about evaluating your current spend,” she said. “You don’t need to invest more money – you need to optimize what you’re already offering to fit the needs of both your current and future workforce.”
That includes tailoring programs to age groups, health profiles, and changing workforce expectations. For instance, drug coverage remains a top-five priority across all generations, even if younger employees aren’t yet managing chronic conditions.
“What doesn’t work is using outdated models,” Schmidt said. “We need to rethink benefits not just as insurance, but as part of the entire employee value proposition.”
