‘Organizations that embrace personalization, leverage digital solutions are going to emerge stronger,’ says Medavie’s Shane Reid
Each month at BPM, we offer a slate of articles and content pieces that go deep on a particular topic. This January, we’re exploring GLP-1 and weight management coverage in benefits plans. Read on to find out more from Medavie's Shane Reid.
Canadian employers face a pivotal moment over the coming year. With pharmacy costs driving an 11 to 12 per cent increase in benefits spending, inflation holding firm, and economic uncertainty from south of the border, plan sponsors find themselves caught between cost pressures and the imperative to support their workforce.
But for Shane Reid, in working with plan sponsors, he notes that Medavie is deliberately trying to move the discussion away from price alone and toward value.
“You need to make your benefit decisions where you are for your definitive employee space. And making sure that we have alignment there. Both in the articulation of that value proposition, but also just what makes the most sense in your plan design,” said Reid, vice-president of product management and marketing at Medavie. “For Canadian employers, 2026 is not just about managing costs, it's about strategically reinvesting in their people. Organizations that embrace personalization, leverage digital solutions are going to emerge stronger. They're going to have a more engaged, healthier, productive teams. It's important not to lose sight of that.”
With nearly 50 percent of employers viewing enhanced benefits as their most effective recruiting strategy, he says, "benefits really are the new battleground for talent."
Still, Reid acknowledges the difficult balancing act employers face. Some are turning to health spending accounts and optional benefits that let employees choose what matters most to them, rather than absorbing across-the-board cost increases. But he remains bullish on the market's growth potential.
"I think there's lots of opportunities when you design products in the right way that are going to encapsulate the needs of the members and the employer," he said, adding that benefits utilization remains strong, which he views as a positive signal.
"That's ultimately why we are here to support the well-being of Canadians. And so when they're using their benefits appropriately, that's a win-win scenario from our perspective."
Reid outlines several themes that plan sponsors can expect to deliver value this year, starting with a gradual shift toward health consumerism. Rather than simply offloading costs, he describes strategies such as diverting some spending into health care spending accounts or personal wellness accounts and using optional benefits to layer on additional coverage. The aim is to let employees choose the services that best match their own needs, within an overall framework set by the employer.
On Medavie’s side, he stresses the importance of supportive health infrastructure. He points to Connected Care, the company’s digital health ecosystem, which gives members access to a curated set of partners and services at preferential rates compared with sourcing them alone. That platform approach, combined with detailed, ongoing conversations with clients and intermediaries, is how he says Medavie is helping employers navigate cost pressures while still keeping plans meaningful for employees.
Reid argues that AI is already reshaping benefits, but that it has to be handled carefully. He noted that Medavie is using AI to make benefits more personalized, predictive, and efficient, largely through two channels: partnerships and internal analytics.
Consequently, he stressed that Medavie is also cautious about how far and how fast it goes. Notably, he believes AI has raised the stakes on cyber risk, so fraud protection and data security have to sit at the top of the agenda for most organizations. That means keeping sensitive operations in-house where possible and enforcing tight controls throughout the organization. For Reid, every AI decision is ultimately anchored in a single principle: safeguarding plan sponsors, members, and their health data.
On mental health, he underscored that the crisis isn’t levelling off, pointing to statistics by Acera that found long-term disability cases are now mental health related, a 60 per cent jump from 2019. Additionally, self-reported poor mental health has risen 25 per cent, which he sees as a sign that stigma is fading, but also as evidence that demand for support is outpacing what many plans offer.
That’s why he urges employers to revisit their mental health coverage caps, noting he thinks “there is a shortfall within the industry right now," he says.
Beyond raising caps, he stresses the importance of promoting digital and preventative solutions already embedded in plans, so they reach the people who need them. He acknowledges cost pressures but argues the investment pays off through improved long-term employee health and lower costs down the road. Beyond the financial case, he says it is simply the right thing to do.
He also underscored how plan sponsors should add a weight management module. Weight management notably dominated industry conversations in 2025, and Reid expects that to carry through 2026, particularly with generic versions of diabetes and weight management drugs expected to hit the market. Still, while the medications “serve a very real purpose, they can be also cost prohibitive in a certain light," he noted.
When asked whether Medavie is expected to offer generic semaglutide, Reid acknowledged Medavie has not yet made a final decision as any new drug will go through the company's medical advisory panel, which evaluates clinical efficacy alongside cost considerations before determining whether it belongs on the formulary and under what conditions. Balancing the diabetes and weight management indications is a key part of that assessment, he said.
Reid suggests offering any covering of weight management, including medication support where appropriate, helps to deliver strong long-term returns for employers.
“It’s not just about homing in on one very specific segment but plan sponsors need to make sure they build a platform that are going to be meaningful for their employees. You need a little bit of everything in there to hit the population, ultimately, to get those supports in play,” said Reid.
