Life Insurance in Canada

As an independent disability insurance broker, I have never faced the question about comparing the ups and downs of the Canadian & US health care system more often than now, when the US congress is considering a huge change concerning the system. Although non of them is hundred per cent, I absolutely detest some of the lies that are spread about the Canadian system. So what am I talking about?

“The Canadian health system is much more expensive than the system in America.”

Firstly there is this cost-related myth. Compare the numbers yourself: US spends 15% of GDP, leaving at least 15% of Americans without any coverage, while Canada spends 10 percent of its GDP, covering 100 percent of Canadians. For example in 2005, the US spent US$6,401 per head on their health expenditures - that’s almost twice the sum spent in Canada that year - US$3,359.

“In Canada, it’s up to the administration to determine who gets the treatment.”

Of course this assumption is totally faulty - only the doctors have the authority to determine about the character and timing of the necessary treatment. On the other hand, the situation is quite different in the USA, where in fact it is up to your insurance administrators to decide what treatment you are allowed to get, never mind what you doctor thinks.

“The Canadian insurance sucks since it only covers the basic and the rest comes out of your pocket anyway.”

The rules regulating the insurance’s inclusion comes from the provincial government. Generally speaking, physician’s fees and all the hospital procedures are covered. Generally various medical equipment and also vision and dental care are not. Because all these extras can be quite well predicted (all the really expensive stuff are covered by the national insurance), some private plans are offered (i.e. FlexCare Program from Manulife) with low-cost premiums to cover them. All in all, to get the same kind of service in the States as in Canada, the Americans have to pay much much more. The system is simply running better in Canada.

“The biggest problem with the Canadian system are the long waits. Virtually there are thousands of Canadians coming to the US to get their treatment every year.”

The situation doesn’t differ that much from the one in America, since the waits associated with some specialist treatments (up to Of course, some selective surgery takes even longer. On the other hand, all acute operation, you will get it fast one way or the other. And, unlike in the US, nobody cares whether you’re rich or poor. For example, if you can’t get acute care you need (i.e. surgery) and you cannot get it as fast as it is medically required, you will most likely be sent to the States - at the expense of the state insurance. If you spoke to somebody from Canada who rushed to the the US for their treatment and had to cover it themselves, they most likely didn’t need the treatment as fast as they wanted it.

“In Canada, the physicians work for the government. And the government selects the physicians for you!”

Not true. Though the Canadian physicians are paid by the provincial government, they are not employed by it: the keep their own practises just like the doctors in the US. And of course you can choose the doctor yourself.