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&medical services
- universal: covers all eligible residents
- public: requires administration by non-profit public authority
- portable: between provinces
- accessible: uniform terms&conditions for all eligible residents

Question 3

federal government mechanism for provincial medical funding

Answer 3

transfer payments

Question 4

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

Answer 4

• direct cost-sharing by residents&employers (i.e, ON)
• payroll tax (i.e, ON)
• general revenue (i.e, NB)
• tax on group insurance plans (i.e, ON)

Question 5

tax treatment of the following:
- individual premium payments to provincial health insurance premiums
- employer contribution to provincial health insurance premiums
- employer contribution to private health insurance premiums

Answer 5

• not tax deductible
• taxable
• not taxable except in QC

Question 6

identify 2 challenges facing provincial hospital and medical insurance plans are

Answer 6

• prescription drug costs: federal government is joining the provinces in the pan-Canadian Pharmaceutical Alliance (pCPA)
• demographics (the ratio of working-age people to retired people is going down): federal government is increasing immigration targets

Question 7

what is the reason for inception of WC insurance

Answer 7

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

Question 8

what is the underlying insurance principle of WC insurance

Answer 8

no-fault insurance

Question 9

how is WC insurance funded

Answer 9

employer

Question 10

explain individual liability in WC insurance regarding operation, funding, where used

Answer 10

• operation: by WC boards
• funding: each employer is self-funded based on claims history
• where used: public agencies

Question 11

explain collective liability in WC insurance regarding operation, funding, where used

Answer 11

• operation: by WC boards
• funding: each industry class (based on activity&risk) is assessed collectively based on claims history
• where used: non-public agencies

Question 12

evaluate the performance of WC

Answer 12

• necessary? Yes, it’s crucial for medical costs&income replacement
• efficient? Yes, more efficient thant 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 13

objectives of EI

Answer 13

• income replacement
• re-employment assistance

Question 14

EI financing

Answer 14

• employee&employer share the cost
• in 2016:
  -> employee rate = 1.88%
  -> employer rate = 2.63% = 1.4 * employee rate
• some programs are funded by general tax revenues

Question 15

EI tax treatment regarding premiums, benefits

Answer 15

• premiums: employer = tax deductible / employee = tax credit / self-employed = 50% is tax deductible
• benefits: taxable

Question 16

reasons EI wouldn’t be viable without government involvement

Answer 16

• adverse selection: only those about to lose their jobs would buy it
• employers wouldn’t contribute: they get no benefit, government must mandate coverage
• complexity: government already has necessary structures in place to facilitate operations