news&views Spring 2015 | Page 40

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Are Dental Care Plans in Alberta Sustainable ? BY GARY SAWATZKY , BA , CEBS | Aon Hewitt Senior Consultant

As we have reported to you over the past year , the generic drug price reductions legislated in Alberta and in other provinces have helped ARTA maintain current Extended Health Care benefit rates .

More recently , we were asked by the ARTA Health and Wellness Benefits Committee to analyze the increase in the dental fees paid in Alberta compared to other provinces where fee guides are available in an electronic format . It was not surprising that our analysis confirms that Alberta dental costs are the highest in Canada , but it was surprising to find out how much higher Alberta dental procedure code allowances are than the rest of Canada .
In our analysis , we used ARTA dental claims data ( by procedure code ) for the past year and calculated what these procedures would have cost in specific provinces , as indicated in Table 1 . Actual 2014 ARTA dental benefit claims in Alberta would
have cost about 39 % less in British Columbia , and about 13 % less in Saskatchewan . As a result , we decided to analyze the annual cost increases over the four previous years . We found that in Alberta , the average annual increase in the insurance providers ’ fee allowances were almost three times the Alberta annual consumer price index ( CPI ) and about 40 % higher than the annual dental fee guide allowance increases in other provinces .
Table 1 : Certain Provincial Aggregate Costs Relative to Alberta Aggregate Costs
-38.97 % -32.68 %
-26.89 % -22.86 %
-13.42 %
This rate of increase in dental costs compelled the ARTA Health and Wellness Benefits Committee and the ARTA Board of Directors to reflect on the hurdles and challenges that ARTA faces in the future while trying to provide stable rates for dental benefits under the ARTA Retiree Benefits Plan .
All Canadian provinces and territories and their taxpayers ( us ) are currently under budgetary pressures . Public health care costs are particularly challenging as health ministries account for about 40 % of provincial budgets across Canada ( 45 % for Alberta and 38 % for BC in the 2014 / 2015 fiscal year ). The elevated costs can be partially attributed to a lack of effective management of health care spending
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