Morn.Pension

Question 1

primary objective of the Canada Health Act

Answer 1

protect/promote/restore the health of Canadians without financial or other barriers

Question 2

identify conditions for province to receive unreduced funding under Canada Health Act

Answer 2

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

Question 3

F2017Q11

Question 4

does the federal government cover more or less than half of provincial health care costs?

Answer 4

less, provinces have to raise the balance

Question 5

federal government mechanism for provincial medical funding

Answer 5

transfer payments

Question 6

4 methods that provinces use to raise balance not covered by federal transfer payments for medical programs

Answer 6

chaD GPT
- Direct cost sharing by residents and employers (ON)
- General revenue (NB)
- Payroll tax (ON)
- Tax on group insurance plans (ON)

Question 7

tax treatment of individual premium payments to provincial health insurance premiums

Answer 7

not tax deductible

Question 8

tax treatment of employer contribution to provincial health insurance premiums

Answer 8

taxable

Question 9

tax treatment of individual premium payments to private health insurance premiums

Answer 9

tax deductible

Question 10

tax treatment of individual premium payments to private health insurance premiums

Answer 10

not taxable except for quebec

Question 11

identify 2 challenges faced by provincial hospital and medical insurance plans and how the federal government is addressing the issue

Answer 11

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

Question 12

what is the reason for the inception of WC insurance?

Answer 12

• courts: overwhelmed by rapid industrialization and workplace accidents
• victims: needed prompt medical and financial assistance

Question 13

what is the underlying insurance principle of WC insurance?

Answer 13

no fault insurance

Question 14

how is WC insurance funded

Answer 14

by employer contributions

Question 15

explain individual liability in WC insurance regarding operation, funding and the entities for which it is used

Answer 15

• 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

Question 16

explain collective liability in WC insurance regarding operation, funding and the entities for which it is used

Answer 16

• 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

Question 17

evaluate the performance of WC using the criteria given in CAS.GovtIns paper

Answer 17

• 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

Question 18

2 objectives of WC

Answer 18

• temporary income replacement
• re employment assistance

Question 19

financing of wc

Answer 19

• employer and employee share the cost
• some programs funded by general tax revenues

Question 20

tax treatment with respect to premium and benefits

Answer 20

premium:
- employee: tax deductible
- employer: tax credit
- self employed: 50% is tax deductible
benefit:
taxable

Question 21

3 reasons why EI wouldnt be viable without government involvement

Answer 21

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

Question 22

describe 4 minimum requirements for an employee benefits plan to qualify for EI premium reduction

Answer 22

• 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

Question 23

identify 3 examples of acceptable arrangements to return, directly or indirectly a portion of the premium reduction to employees

Answer 23

• written agreement
• cash back on 5/12 of company savings
• increased benefits

Question 24

disqualifications of EI

Answer 24

dismissal with cause
quit
strike