CLHIA-ACCAP

14 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 Canadians also supplement government and group protection with individual plans. Supplementary health insurance takes over where government coverage ends. This partnership of private insurance and government programs 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. Disability income insurance plans help replace lost income, often supplementing benefits from the Canada/ Quebec Pension Plans, Workers' Compensation and Employment Insurance. They pay a periodic cash amount (e.g., 70 per cent of normal earnings). Benefits from group or individual plans often are integrated with those from government plans so that benefits do not exceed a certain percentage of normal earnings. Short-term plans commence benefits the first day off work or soon after and continue payments for a limited number of weeks (e.g., 17 or 26 weeks). Long-term income replacement plans normally start benefits at the end of a specified period (e.g., 90, 120 or 180 days) after the onset of disability and continue payments for a stated term or to a stipulated age (e.g., age 65). When short- and long-term plans are coordinated, long-term benefits begin immediately after payments end from the short-term plan. At the end of 2014, almost 42,000 group contracts in force in Canada provided over 2.6 million workers with short- term income replacement; about 104,000 group contracts gave almost 10.1 million workers long-term coverage; and over 970,000 contracts were purchased individually. Coverage has risen significantly over the past decade. Health Insurance Coverage Health Coverage 1 by Benefit Type Insured and Uninsured Plans (persons covered – thousands) 2004 2014 Insured Contracts Disability income (long term) 9,074 11,042 Extended health care 2 19,370 26,961 Dental care 2 10,871 15,603 Uninsured Contracts 3 Disability income (long term) 811 937 Extended health care 2 9,836 14,166 Dental care 2 8,384 13,266 Source: CLHIA special survey (Health Insurance Benefits in Canada) 1 For 2014, figures report on the business of all providers. For 2004, data are for insurance companies only 2 Data include double counting when family members are covered under separate benefit plans for each spouse or when health benefit packages are designed to provide certain coverage(s) under an insured plan, in conjunction with supplementary protection under an uninsured contract. After eliminating duplicate coverage, the number of Canadians protected through these plans are estimated at about 24 million with private supplementary health benefits and roughly 20 million with dental care benefits 3 Administrative services only are provided for these plans

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