What Are Extended Health Care Benefits?

Canada has a universal healthcare system, but it doesn’t cover all medical services.

Medical expenses that are not covered include most prescription drugs, dental care, vision care, and some mental health services. Therefore, despite having access to a universal healthcare system, escalating health care costs can lead to significant out-of-pocket expenses for employees. 

This is where extended health care benefits come in. 

Extended health care benefits — often referred to as group health insurance — can nicely supplement provincial health insurance plans. They provide comprehensive healthcare coverage to employees at lower costs compared to individual plans, all the while helping employers attract and retain top talent — a win-win situation both. 

What is extended health care?

Extended health care is designed to partially reimburse eligible medical expenses typically not covered by provincial healthcare plans. In most cases, this would include expenses such as prescription drugs, vision care, and paramedical services. Some employee benefits plans also cover dental care, though cosmetic dental services are usually excluded. 

What is covered by Extended Health Care?

Every insurer’s extended health care plan is different. Read your plan document or speak with the plan administrator to know what is covered and what is not. 

Generally speaking, these plans fully or partially reimburse you for: 

• Prescription drugs
• Hospital accommodations
• Medical supplies and equipment such as hospital beds, prostheses, wheel chairs, orthopedic shoes, hearing aids, and kidney dialysis equipment
• Paramedical services such as naturopath, osteopath, chiropractor, speech therapist, physiotherapist, podiatrist, and acupuncturist
• Vision care
• Accidental dental insurance

Advantages of extended health care

A robust extended health care plan is beneficial for both the employer and employees. 

Benefits to the employee

Lower cost

Employees receive extended health care benefits free of cost or at a lower cost compared to individual health insurance plans. 

Family coverage

Generally, extended health care plans allow employees to include their dependents, such as their spouse and children. 

Simplified claim process

Many plans have direct billing arrangements with a number of healthcare providers. This not only reduces out-of-pocket costs for your employees but also eliminates the need to track and manage paper claims. Even when a claim needs to be filed, filing it is usually much easier than it is with individual health insurance plans. 

Benefits to the employer

Attract and retain talent

Many Canadians favor workplace benefits over extra salary. According to a survey by Blue Cross of Canada, roughly 49% of employees want health benefits over pay raise. Offering a robust employee benefits package that includes extended health care benefits can help your business attract and retain top talent. 

Employee morale boost

Offering group health insurance can make employees feel valued and appreciated, leading to higher morale and productivity.

Better productivity

Healthier, happier employees are more productive, so it pays to invest in their well-being. One study by the Washington University in St. Louis reported that companies that offered health benefits to their workers experienced better productivity, profitability, and retention. 

Conclusion

Extended health care benefits reimburse expenses not covered by provincial health insurance plans. For example, this would include drug coverage, vision care, and paramedical services. If you are an employee, access to such a plan can reduce your out-of-pocket medical costs.

For employers, a comprehensive health benefits plan can help ensure employee’s well-being, reduce absenteeism, and boost productivity. 

Reach out to a Dundas Life licensed advisor today to help find the right plan for you.

FAQs

Does extended health care cover catastrophic health insurance?

Catastrophic health insurance is a form of health coverage mainly intended to cover significant, high-priced medical emergencies rather than everyday healthcare expenses. Extended health care benefits plans offered by your employer may or may not include catastrophic health insurance. Read the policy document or contact HR to confirm. 

Does extended health care cover dental care?

Extended health care may or may not cover routine dental care, depending on the plan and the type of dental treatment. Emergency dental services, however, are usually covered. 

Is extended health care coverage extended to all employees?

Employers who have an extended health care plan in place usually offer it to all full-time employees. Some employers may also let part-time employees join. Participation is voluntary and the cost of the plan is typically split between the employer and the employee. The employer’s contribution is deducted from their monthly salary.