Issue link: http://clhia.uberflip.com/i/396004
Health Insurance Coverage While government programs cover basic physician and hospital expenses for Canadians or help them out financially if they are unable to work because of disability, the majority of Canadians are also protected from financial loss by health coverage provided by life and health insurers, Blue Cross, non-profit insurers, uninsured employer arrangements and other organizations. While most people are covered through group plans provided by employers, unions or professional associations, many also supplement government and group protection with individual plans. Supplementary health insurance takes over where government coverage ends. This partnership contributes to the quality of life and health of Canadians. With health and living costs rising steadily, many Canadians could be devastated financially by unexpected illnesses or accidents. Insurance coverage is crucial to their financial well-being and peace of mind. At year-end, insured supplementary health and disability benefit plans in New Brunswick provided: 201,000 workers with disability income protection; 194,000 people and their 196,000 dependants with extended health care coverage; and 83,000 people and their 104,000 dependants with reimbursement of dental care expenses. Through these insured plans and similar coverages provided by uninsured employer arrangements, some 520,000 New Brunswick residents have supplementary health benefit coverage (after eliminating duplicate coverage) and about 225,000 people have disability income protection. Premium Income Life and health insurance providers receive funds from two main sources: premiums and deposits paid by policyholders and earnings on investments. The portion of premium payments not used to pay benefits or expenses in the current year becomes available for investment in the nation's economy until needed to pay future benefits. In product pricing, the anticipated investment earnings are taken into account, thereby reducing the cost of life insurance, health insurance and annuities to policyholders. During the year, New Brunswick residents paid total premiums and premium equivalents of almost $2.1 billion for life and health insurance, as well as annuity products. Of the total, $640 million, or 31%, were for annuity products such as employer sponsored private pension plans, RRSPs, RRIFs, DPSPs and payout annuities. This included $178 million of premiums for individual annuities and $462 million of premiums for group annuities.