Canada is paying more and getting less from private insurers

[ProSense]

Canada is paying more and getting less from private insurers

Canadians spend more on private health insurance for smaller payouts

Medical Xpress, March 24, 2014

Spending by Canadians on private health insurance has more than doubled over the past 20 years, but insurers paid out a rapidly decreasing proportion as benefits, according to a study published today in the CMAJ (Canadian Medical Association Journal).

The study, by University of British Columbia and University of Toronto researchers, shows that overall Canadians paid $6.8 billion more in premiums than they received in benefits in 2011.

Approximately 60 per cent of Canadians have private health insurance. Typically obtained as a benefit of employment or purchased by individuals, private health insurance usually covers prescription drugs, dental services and eye care costs not paid by public health care.

Over the past two decades, the gap between what insurers take in and what they pay out has increased threefold. While private insurers paid out 92 per cent of group plan insurance premiums as benefits in 1991, they paid only 74 per cent in 2011. Canadians who purchased individual plans fared even worse, with just 38 per cent of their premiums returned as benefits in 2011.

- more -

http://www.pnhp.org/news/2014/march/canada-is-paying-more-and-getting-less-from-private-insurers

The Single Payer Movement Expands
http://www.democraticunderground.com/10024757591

A Brief History: Universal Health Care Efforts in the US
http://www.democraticunderground.com/10024755799

[Electric Monk]

1. So, basically, Canadians who choose to purchanse supplemental health insurance are largely

throwing their money away, because they're already covered?

[ProSense]

2. Where

"So, basically, Canadians who choose to purchanse supplemental health insurance are largely throwing their money away, because they're already covered?"

...does it say that? From the OP.

Approximately 60 per cent of Canadians have private health insurance. Typically obtained as a benefit of employment or purchased by individuals, private health insurance usually covers prescription drugs, dental services and eye care costs not paid by public health care.

The point is that they're being overcharged.

[NoOneMan]

3. Supplemental insurance covers things that aren't covered in the provincial plans

The interpretation is that for the average consumer, they aren't receiving back what they are paying (but some are). These plans normally only cost $75 to $200 a month though.

I just wish the provinces got their shit together and started covering dental. drug and therapy services. It would save everyone money in the end, even if premiums went up. We don't need a private company to push paperwork and take a cut

[Electric Monk]

5. So they'd be better off putting it in a savings account instead of paying insurance premiums.

With the very occasional exception.

The insurance industry is designed, by its very nature, to be for profit for the insurers. This isn't news.

[NoOneMan]

6. Basically, yes

Save for a few. But most provinces have catastrophic prescription coverage based on income, so I just don't see how its really going to work out in the end.

Yes, for-profit insurance is a big scam. Canadians should already know that and should take care of it.

If anyone in the US is paying attention, these insurers that are institutionalized into your system (with a super-de-duper reform) need to be shown a quick exit.

[Spazito]

4. No, it means the opposite...

Coverage under universal healthcare is shrinking in some Provincial programs so Canadians are having to purchase supplemental health insurance to try and retain that coverage and the supplemental health insurance, in turn, is costing more and delivering less.

That's what happens when a Conservative/republican government is in power.

[Enthusiast]

7. How did a Conservative/republican government ever get into power?

I thought Canadians were smarter than that. Maybe they have electronic voting there too?

[Spazito]

8. Well, it is the downside of a multi-party system when the left is divided...

and the right is not. The left is divided in four, the right is united, hence we will have a Conservative/Republican government until the left is more united or the Cons become divided.

[ProSense]

9. Ah, divide and conquer.

Thanks for the insights.