Canada’s private insurance sector may be in need of reform
A new study from the Center for Health Services and Policy Research at the University of British Columbia suggests that private health insurance may be inadequate. The study shows that there is a significant gap between the premiums that consumers pay for coverage and the claims payouts that are issued by insurance companies. As such, major reforms may be in order for Canada’s insurance sector in order to make health care more beneficial for consumers.
Study shows that there is a significant gap in premiums paid and claims payouts
According to the study, the gap between premiums and claims payouts reached $6.8 billion in 2011. An estimated 60% of Canadians are currently covered through private health insurance policies, with for-profit organizations dominating the market. The study suggests that insurance companies in Canada are not providing adequate benefits for how much they are charging in premiums. The problem may not lie completely with insurers, however, as the country’s health care system continues to struggle with the rapidly increasing cost of medical care.
Replacing private insurance with public options may be necessary
Researchers from the Center for Health Services and Policy Research suggest that more can be done to improve the health insurance sector. The Canadian government may be able to make insurance coverage more adequate for consumers by replacing private insurance with public options. New regulations focused on the private insurance sector could also go a long way in mitigating the costs of insurance coverage. Without addressing the issue of the rising cost of medical care, however, insurance coverage is expected to continue to become more expensive.
Insurance association claims that the study is misleading and does not include information from non-profit groups
The Canadian Life and Health Insurance Association claims that the study from the Center for Health Services and Policy Research is misleading. The association suggests that without private insurance companies the pressure on public resources would be greater. This would eventually lead to greater financial pressure on consumers in general. The association also claims that the study did not include information from non-profit insurance organizations.