Update about the transfer of your Health Care Plan to Canada Life

Update about the transfer of your Health Care Plan to Canada Life

Union News - April 2024

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On February 23, 2024 the Public Service Alliance of Canada (PSAC) filed a Policy Grievance on behalf of the Union of Taxation Employees (UTE) to contest the poor management of the transfer of the Public Service Health Care Plan (PSHCP) to Canada Life, which has impacted tens of thousands of employees covered by the plan.

The policy grievance argues that the Agency's actions violated the collective agreement by implementing the transition without regard for the rights of all members to a functioning health care plan and did so in a manner that also violated their human rights. 

Immediately following the transfer of the administration of the PSHCP from Sun Life to Canada Life, members began dealing with significant issues, including the interruption of their benefits, the inability to contact the insurer, long delays and arbitrary and wrongful denial of claims.  

Some members were facing the difficult decision to stop their medical treatments because they could not afford to pay out of pocket and wait for the eventual reimbursement by Canada Life. 
Under these circumstances, an apology is not enough to redress the harm already caused, as well as the harm members continue to experience. 

UTE is seeking remedies for the problems the transition caused including, but not limited to, the following: 

  • a declaration that the employer has violated the collective agreement;
  • an order that the employer compensate members for all harms experienced since the transition to Canada Life, including:  
    • general damages for all employees for the stress, aggravation, and pain and suffering they experienced;  
    • damages for impacts to those who experienced financial losses; 
    • damages under the Canadian Human Rights Act for adverse effects experienced on the basis of prohibited grounds. 

PSHCP Appeal Process 

If you have experienced issues with coverage or your claim has been denied by Canada Life, please follow the PSHCP appeal process. You can find more details about the process through the Plan’s administration authority, https://pshcp.ca/appeals/ .

Any issues related to the denial of a claim or coverage under the Plan, or if you received a lesser reimbursement than expected should be appealed, not grieved.  If you grieve these issues, it will take substantially longer to resolve.

Please review the PSAC related link https://psacunion.ca/faq-public-service-health-care-plan-canada-life and/or contact a member of your union local executive, if you have questions about whether your situation should be appealed or grieved. 

In Limited Situations You May Be Able to File a Grievance 

If you experienced delays or other hardship because of Canada Life’s administration of your claim, you may be able to file a grievance against the employer. A grievance may be appropriate where Canada Life failed to process a claim or provide reimbursement within a reasonable time or where you were unable to contact them in a reasonable time, leading to financial hardship, delayed treatment, or some other adverse impact. The grievance process takes substantially longer than the appeals process and a grievance on a denial of benefits will be rejected, and you will be directed to appeal. 

Wael Afifi
Senior Labour Relations Officer

 

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