16
Uninsured plans are those
where a plan sponsor (usually
an employer) provides benefits
to a group of people (typically
employees) outside of an
insurance contract. These
plans are often administered
by insurance companies or
another outside firm. Because
these plans are not insured,
however, the insurance
company does not guarantee
benefits. The plan sponsor
is responsible for providing
the funds to pay claims.
Recent federal and provincial
legislative changes require
that group long-term disability
plans be fully insured. This will
protect employees on long-
term disability in the event of
an uninsured plan sponsor's
financial stress or insolvency.
At the end of 2014, uninsured
health plans provided
1.9 million workers with
short-term disability income
protection; 937,000 workers
with long-term disability
income protection; more than
5.7 million employees and
their 8.4 million dependents
with extended health
care benefits; and nearly
5.5 million workers and their
7.8 million dependents with
reimbursement of dental care
expenses. Coverage under
these contracts has increased
substantially during the
past decade.
