Skip to main content

Private health insurance prices increasing ONLY 11.7%

The major Canadian private insurance companies expect a significant drop in inflation for private health care  insurance premiums this year.

They are going to wrestle the price increases down to 11.7% in 2012 according to a new report from Buck Consultants, a Xerox company.  In 2011, premium prices increased 14.2%.

Now with progress like that, who wouldn't want to replace public health care insurance with more private health care insurance?

(According to the OECD, overall  health care spending, public and private, increased by 3% in Canada in 2010. Public expenditures increased by 2.7% in 2011.)

The fastest growing aspect of private health care insurance is for drugs, with premium inflation set at 12.1% this year.   That is down from 14% last year due reportedly to the implementation of government led generic drug pricing reform and the expiry of  patents for several major drugs.  Apparently, however, this will be offset in the future by the rise in expensive 'biologic' and specialty drugs.

Premiums covering dental costs should continue to increase in the 8% range, as will premiums for hospital costs.

The sharply rising costs for private health care insurance premiums are likely to spur employers to try to offset those costs by squeezing coverage.


  1. Still the world is in economic down turn and hope for the best in 2013 Insurance Job Duties


Post a Comment

Popular posts from this blog

Public sector employment in Ontario is far below the rest of Canada

The suggestion that Ontario has a deficit because its public sector is too large does not bear scrutiny. Consider the following. 

Public sector employment has fallen in the last three quarters in Ontario.  Since 2011, public sector employment has been pretty flat, with employment up less than 4 tenths of one percent in the first half of 2015 compared with the first half of 2011.

This contrasts with public sector employment outside of Ontario which has gone up pretty consistently and is now 4.7% higher than it was in the first half of 2011.

Private sector employment has also gone up consistently over that period. In Ontario, it has increased 4.3% since the first half of 2011, while in Canada as a whole it has increased 4.9%.

As a result, public sector employment in Ontario is now shrinking as a percentage of the private sector workforce.  In contrast, in the rest of Canada, it is increasing. Moreover, public sector employment is muchhigher in the rest of Canada than in Ontario.  Indeed as…

The long series of failures of private clinics in Ontario

For many years, OCHU/CUPE has been concerned the Ontario government would transfer public hospital surgeries, procedures and diagnostic tests to private clinics. CUPE began campaigning in earnest against this possibility in the spring of 2007 with a tour of the province by former British Health Secretary, Frank Dobson, who talked about the disastrous British experience with private surgical clinics.

The door opened years ago with the introduction of fee-for-service hospital funding (sometimes called Quality Based Funding). Then in the fall of 2013 the government announced regulatory changes to facilitate this privatization. The government announced Request for Proposals for the summer of 2014 to expand the role of "Independent Health Facilities" (IHFs). 

With mass campaigns to stop the private clinic expansion by the Ontario Health Coalition the process slowed.  

But it seems the provincial Liberal government continues to push the idea.  Following a recent second OCHU tour wi…

Hospital worker sick leave: too much or too little?

Ontario hospital workers are muchless absent due to illness or disability than hospital workers Canada-wide.  In 2014, Ontario hospital workers were absent 10.2 days due to illness or disability, 2.9 days less than the Canada wide average – i.e. 22% less.  In fact, Ontario hospital workers have had consistently fewer sick days for years.

This is also true if absences due to family or personal responsibilities are included.
Statistics Canada data for the last fifteen years for Canada and Ontario are reported in the chart below, showing Ontario hospital workers are consistently off work less.
Assuming, Ontario accounts for about 38% of the Canada-wide hospital workforce, these figures suggest that the days lost due to illness of injury in Canada excluding Ontario are about 13.6 days per year ([13.6 x 0.68] + [10.2 x 0.38] = 13.1).

In other words, hospital workers in the rest of Canada are absent from work due to illness or disability 1/3 more than Ontario hospital workers. 

In fact, Canad…