Morn.Pension Flashcards
primary objective of the Canada Health Act
protect/promote/restore the health of Canadians without financial or other barriers
identify conditions for province to receive unreduced funding under Canada Health Act
CUPPA
- Comprehensive: covers all hospital and medical services
- Universal: covers all eligible residents
- Public: requires administration by non profit public authority
- Portable: between provinces
- Accessible: uniform terms and conditions for all eligible residents
F2017Q11
does the federal government cover more or less than half of provincial health care costs?
less, provinces have to raise the balance
federal government mechanism for provincial medical funding
transfer payments
4 methods that provinces use to raise balance not covered by federal transfer payments for medical programs
chaD GPT
- Direct cost sharing by residents and employers (ON)
- General revenue (NB)
- Payroll tax (ON)
- Tax on group insurance plans (ON)
tax treatment of individual premium payments to provincial health insurance premiums
not tax deductible
tax treatment of employer contribution to provincial health insurance premiums
taxable
tax treatment of individual premium payments to private health insurance premiums
tax deductible
tax treatment of individual premium payments to private health insurance premiums
not taxable except for quebec
identify 2 challenges faced by provincial hospital and medical insurance plans and how the federal government is addressing the issue
1) prescription drug costs
- federal government is joining the provinces in pCPA
2) demographics: ratio of working age people decreasing
- federal government is increasing immigration targets
what is the reason for the inception of WC insurance?
- courts: overwhelmed by rapid industrialization and workplace accidents
- victims: needed prompt medical and financial assistance
what is the underlying insurance principle of WC insurance?
no fault insurance
how is WC insurance funded
by employer contributions
explain individual liability in WC insurance regarding operation, funding and the entities for which it is used
- operation: by WC boards
- funding: each employer is self funded based on claims history
- where used: public agencies, large corporations in transportation industry
employers are assessed amount based on actual claims and expenses for their company, “pay as you go” model
explain collective liability in WC insurance regarding operation, funding and the entities for which it is used
- operation: by WC boards
- funding: each industry class (based on activity and risk) is assessed collectively based on claims history
- use for non public industries
evaluate the performance of WC using the criteria given in CAS.GovtIns paper
- necessary?
yes, it’s crucial for medical costs and income replacement - efficient?
yes, more efficient than private insurance since profit motive is removed - welfare or insurance?
insurance, because premiums are paid regardless of loss and benefits provided only if there is a loss
2 objectives of WC
- temporary income replacement
- re employment assistance
financing of wc
- employer and employee share the cost
- some programs funded by general tax revenues
tax treatment with respect to premium and benefits
premium:
- employee: tax deductible
- employer: tax credit
- self employed: 50% is tax deductible
benefit:
taxable
3 reasons why EI wouldnt be viable without government involvement
ACE
- Adverse selection: only those about to lose their jobs would buy it
- Complexity: government already has necessary structures in place to facilitate operations
- Employers wont contribute because they get no benefit so government must mandate coverage
describe 4 minimum requirements for an employee benefits plan to qualify for EI premium reduction
- employee benefits greater than EI benefits
- benefits start in 15 days
- benefits duration longer than 15 weeks
- employee compensation not reduced even if additional EI benefits are given in same period
identify 3 examples of acceptable arrangements to return, directly or indirectly a portion of the premium reduction to employees
- written agreement
- cash back on 5/12 of company savings
- increased benefits
disqualifications of EI
dismissal with cause
quit
strike
