We thought it was important to let all of our advisors know about the actions Johnston Group is taking on this potential issue.
As you likely know, the Federal Government is considering eliminating the existing tax exempt status for health and dental benefits in employer based plans. This could lead to significant disruption in the group benefits marketplace as it not only would impact the cost of the existing plans but could also result in companies eliminating their employee benefit plan altogether. There is a strong case to be made for keeping the exemption in place to benefit not only our industry but also Canadian business, especially small business, and their employees.
In collaboration with the Canadian and Provincial Chambers, Johnston Group has put together an advocacy strategy that will have the following actions:
- The attached report, along with a call to action, has been sent to the Canadian Chamber. They will be forwarding a version of this report to all local Chambers with a request to send it to their entire membership. This will be the second communication coming from the Canadian Chamber, who has already sent a letter to all Chambers urging them reach out to their MPs.
- Directing Chambers and members to CLHIA’s website donttaxmyhealthbenefits.ca to encourage a letter writing campaign.
- The Provincial Chambers will be following up with the local Chambers to encourage their action and answering any questions.
- Chambers will organize targeted contact with MPs, Ministers, and officials in key departments to make the case on behalf of millions of Canadians.
- A potential media approach will be discussed that could leverage Chamber relationships with their local media.
We are still hopeful that the Federal Government will back away from this proposed action but they need to hear from Canadians. We are working with Chambers to do their part to ensure the Federal Government knows this is not group insurance issue but a serious business issue.
We encourage all businesses, advisors and local chambers and board to make their voice heard on this issue.