It is important to note that insurance companies use a higher inflation rate when renewing group insurance contracts. They justify these inflation rates used (6% to 11%) by a combination of higher fees guide and an increase of the dental plans’ utilization (more claims).

These yearly increases in a difficult economic environment might encourage some employers to remove the dental plan or reduce the benefits. We work closely with our clients to help them contain the costs of this benefit and limit the increases by implementing a variety of measures. Some of the measures we can use are the increase of deductibles, change the frequency of the recall exam, lower the annual maximum.

For more information on the new fees increases in the provinces and territories please consult this document from Sunlife.