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Canadians Spend More On Health Insurance

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, says a Canadian Medical Association Journal study. It shows that overall Canadians paid $6.8 billion more in premiums than they received in benefits in 2011. Approximately 60% 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% of group plan insurance premiums as benefits in 1991, they paid only 74% in 2011. Canadians who purchased individual plans fared even worse, with just 38% of their premiums returned as benefits in 2011.

Courtesy of Benefits and Pensions Monitor website News Alerts 

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