Canadian Individual Health Insurance Plans
Basic health insurance needs of citizens in Canada are provided by provincial governments. This is only limited coverage and supplemental coverage may be necessary for additional health insurance needs. Health care plans in Canada come in many forms and are needed in addition to the basic health insurance that is provided by each province or territory. Each health plan requires a basic premium that needs to be paid.
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Government Health Care
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The Canadian Constitution states that health care is to be provided to all citizens by each province. The Canadian government passed the Canadian Health Act in 1984 (see Resources). This is Canada's federal law for publicly funded health care insurance. The act established certain specifications that each province and territory must meet in order to receive government money for health care.
Group and Small Business Plans
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Many businesses in Canada offer group health insurance coverage to their employees. Coverage typically consists of dental care, medical care, as well as life and disability insurance. Benefits of a group health insurance plan include promoting loyalty and trust among a business's employees. A business can even include the premiums paid for health insurance coverage as a business expense.
Personal Plans
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Individuals who do not qualify for a group or small business plan can obtain a personal plan. This type of plan is required for families to receive treatment for illnesses or procedures that are not covered by a provincial health plan. A basic personal health insurance plan will cover 40 percent to 80 percent of the costs for dental, vision and certain types of health care such as a chiropractic, home care and ambulance transportation.
Indemnity Plans
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An indemnity plan is what is known as "fee-for-service" in which a share of the medical cost is payed by the plan once a bill has been received. An individual will need to pay for a set percentage of the medical costs and the insurance company will pay the remainder. A deductible will need to be paid first before insurance provides coverage for medical costs.
Managed Care
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Two providers in Canada are used to provide medical care in an attempt to manage costs as well as accessibility and quality. There is a Preferred Provider Organization (PPO) and a Point-of-Service Plan. (POS). A PPO has agreements with health care providers to accept a lower amount from an insurer for the services that are provided. A POS plan allows a doctor to make referrals to other doctors or providers that are in the plan.
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