“I thought healthcare was free in Canada, why do I need employee benefits?”

The misconception that public healthcare covers all aspects of healthcare is widespread and we hear it from both employers and employees on a regular basis. While there is a stark difference between the public healthcare system in Canada and the private employer-sponsored benefit programs, both have role to play in keeping Canadians healthy. Both systems provide healthcare services to Canadians but in different ways and cover different products and services. In this article, we compare both systems in terms of access to healthcare services, cost, and coverage. 

Access to Health Care Services

The public healthcare system in Canada is administered by the federal and provincial governments and is funded through taxes. This system provides universal access to healthcare services such as doctor visits and urgent care, regardless of ability to pay. All citizens and permanent residents are eligible to receive provincial health coverage. Most provinces also have an income-based public drug benefit program, such as Pharmacare in BC. These programs typically provide support for seniors, recipients of social assistance, and individuals with diseases or conditions that are associated with high drug costs. 

 In contrast, private group benefit programs are offered by an employer and can include benefits not covered by public health coverage, such as paramedical practitioners, prescription drugs, dental, and vision coverage. Any expenses which might be eligible through provincial health plans should go through the public healthcare system before a private plan will cover an expense. Eligibility for these private employer-sponsored group benefit programs is determined by the employer and is typically limited to full-time employees and their dependents.

Cost

The cost of public healthcare in Canada is subsidized by the government and is provided at no cost to the individual. This makes the system accessible to all Canadians, regardless of their economic situation. In comparison, private employer-sponsored benefit programs are typically funded by employer and employee contributions, which can vary greatly depending on coverage amounts, demographics, and the employer’s industry.

In conclusion, the public healthcare system in Canada provides universal access to basic healthcare services which is supplemented by private group benefits programs. Together, both public and private programs help provide Canadians with access to key healthcare services.