Private healthcare in Canada

In Canada, approximately 90% of hospital care fees are covered by public funding, unofficially termed ‘Medicare’. However, the government won’t pay for trips to the dentist. The rest must be covered privately. Whilst private healthcare in Canada may not be as hotly-contested a subject as private healthcare in some other countries, it is still an important concept that all Canadians should be familiar with.

Private healthcare in Canada usually involves payment for medical services not covered or only partially covered by public funding. These services include ambulance services, prescription drugs, dentistry and optometry, all of which are not publicly-funded in their entirety. Due to financial disincentives, private health insurance does not usually pay for medical services which are publicly-funded (such as physician visits), and in some provinces may even be legally restricted from doing so. Aside from funding the medical care itself, some providers of private healthcare in Canada are able to buy priority placement on waiting lists for medical services.

Sources of private healthcare in Canada vary depending on an individual’s circumstances. 65% of Canadians have some form of private health insurance, with many receiving cover through their employers. For those funding their private health insurance themselves, a proportion of the premiums on private healthcare in Canada are eligible for deduction from personal income tax payable as tax credits for ‘medical expenses’.

Private health insurance plans often include partial or full cover for vision care, hospital care, local ambulance services, in-home nursing, accidental death and ‘registered health practitioners’ such as psychologists. Some providers of private healthcare in Canada, such as Blue Cross, allowed their customers to add optional dental and drug coverage to their plans for an additional fee. However, many providers exclude existing medical conditions from their coverage, therefore it is important that Canadians acquire private health insurance early in case of any unforeseen illnesses.

Private healthcare in Canada is a subject all Canadians should be educated about, but unfortunately, many are not. Many healthy Canadians mistakenly believe that in the case of illness, the provincial healthcare system will provide funding, when in many cases, it will not. For this reason, it is essential that Canadians make an informed decision on private health insurance.