Oh Doctor, Doctor! Canada is Calling, Calling!

Sorry folks for the long break since my last post.  I have been a little busy but thought that this morning I would write about the new Statistics Canada report on the shortage of doctors.  Rather, the number of Canadians without a family doctor.

According to the report, 4 million Canadians do not have a regular doctor, and recent immigrants are the most likely to be without one.  Only 73% of people living in Quebec have a regular doctor, the lowest rate in the country.  Nova Scotia, however, had the highest percentage at 94%.  Of those who do not have a family doctor, the study showed that 76% use local clinics and community health centres as their primary source of care.

This lead to me thinking…what does this mean for the corporate consolidation we are starting to see in places like Alberta and Ontario for medical services?  ListenUp Canada, as an example, are consolidating hearing clinics and making access and service more streamlined.  Will private walk-in clinics be branded next?  For those looking for new business venture ideas, might I suggest a coffee in the coming weeks?  We may be onto something here, especially if this trend continues! 

New Eligible Claims for Medical Tax Credit & HSA

Tax-free Savings Accounts (TFSA) were not the only thing announced during the federal budget this week.  New allowances were made to the list of eligible claims in addition to some strong actions to be taken to tighten up the words and rules on prescriptions and vitamins.  Go Flaherty, get tough with those supplement-poppin baby-boomers!

The budget approved the following items to be included as eligible expenses: altered auditory feedback devices for the treatment of a speech disorder; electrotherapy devices for the treatment of a medical condition or a severe mobility impairment; standing devices for standing therapy in the treatment of a severe mobility impairment; and pressure pulse therapy devices for the treatment of a balance disorder.  Expenses for service animals specially trained to assist an individual who is severely affected by autism or epilepsy to cope with the individual’s impairment, was also added.   Currently, the rules only recognize an individual who is blind, deaf or has a severe impairment that markedly restricts the use of the individual’s arms or legs.

Finally, the budget announced that it would revise the wording on prescription drugs.  Currently, drugs, medications and other preparations are eligible for the Medical Tax Credit when they are both prescribed by a recognized medical practitioner (or a dentist) and recorded by a pharmacist.  However, recent court decisions have interpreted this measure to include, in some cases, the cost of vitamins, supplements and drugs that could otherwise be purchased without a prescription.  To clarify the issue, the government is going to clarify the wording for eligible drugs and medications to ensure that those that may be purchased without a prescription remain ineligible.

This is good news!  By reinforcing the rules, the government is taking a serious stance on the importance of the Medical Tax Credit as well as Health Spending Accounts.  This should be a taken as stern message to some of the fly-by-night HSA providers to shape up your adjudication and HSA knowledge, or ship out!

 

What? No Medical Required?

I was at a cocktail party over the weekend and met another guest who happened to be an independent consultant.  When I told her that I worked in the health insurance world, she went silent and looked as if she wanted to kill me!  I noted the serious look on her face and said “Uh-oh, somebody better walk me to my car later..”  She laughed, and apologized for the glare.  She then explained herself..

It turned out that she did not have any prescription drug or dental coverage.  She had applied to the three well-known carriers ( I won’t mention which ones specifically) and had been denied a suitable plan because of a pre-existing condition she had and the fact that she travels overseas frequently.  The drugs she currently pays for, no matter what plan she selected, would never be covered.  When she heard I worked in the health insurance world, she immediately wanted to give me a piece of her mind.  That is, until I started to explain the concept of a health spending account.

In her situation, the HSA was the best solution.  She had no problem getting travel insurance, but it would not cover the pre-existing conditions.  That was the least of her concerns.  What she wanted was a manner in which to pay for her day-to-day drug claims in a more cost-effective manner.  Luckily, she was incorporated and was eligible for a health and welfare trust.  Over a drink, we estimated her average drug costs each month (including her massage therapy and dental visits.  At the end of the day, she needed a health and welfare trust worth about $200/month.  While I could not calculate the exact savings on the spot I did explain that the total amount would be an eligible business expense for the corporation and tax-free for her to spend.  Any overseas expenses related to her pre-existing condition would also be eligible as expenses from her health spending account – an added perk.  While she thought that was impressive, she was really more excited about the fact she did not require the medical!