The Public Service Health Care Plan

The Public Service Health Care Plan (PSHCP) was up for renewal in April 2011. The results of the PIPSC health care survey were used to develop the list of “improvements” we presented to Treasury Board, through the National Joint Council.

Our benefits have been under scrutiny since the March 2010 Budget, in which Minister Flaherty announced that “Employee pension and other benefits are not subject to the general operating budget freeze. However, …the Government will continue to examine ways in which these costs can be better managed and will engage with public sector bargaining agents to ensure that total costs of compensation are reasonable.”

In fact, in June 2010, without any consultation with the bargaining agents, the Treasury Board unilaterally announced a substantial increase in the monthly dental contribution rates for retired members. Similarly, rather than improving the disability plan, the government scooped $75M in surplus by taking a contribution holiday.

Although the health care plan is due for renewal, given the government’s prevalent “cost cutting” mode, PIPSC and the other bargaining agents are contemplating an extension of the plan for one or two years. The government might be more willing to consider improvements to the plan when it is meeting its deficit reduction targets.

As part of the renewal process, the PSHCP Administrative Authority conducted a study of health care plans in Canada. Study participants included large private sector organizations, (both union and non-union) and provincial and municipal government plans. Overall, the study showed that the PSHCP compares favourably with the coverage provided by other providers.

The PSHCP is particularly good for pensioner benefits, as very few plans offer the same coverage to their retirees as their active employees. None continues benefits for the lifetime of the survivor spouse. However, vision care benefits compare poorly with other plans.

The study also revealed that out-of-country coverage lagged behind other plans. Members are strongly encouraged to purchase additional coverage when travelling. The MEDOC plan, underwritten by the Royal and Sun Alliance Insurance Company and administered by Johnson Inc., is specifically designed to supplement the PSHCP.

Health Care Card

The implementation of the Health Care card did not go as smoothly as anticipated with concerns regarding name brand versus generics and the 100-day supply and integration with some provincial drug plans. We are working diligently with Sun Life and Treasury Board to iron out the bugs. Nonetheless, we hope our members are enjoying the many positive benefits of a pay- direct drug card.

Contributor: Shannon Bittman Full-Time Vice-President