Parliamentary committee to look into 'Canada Life fiasco'

Public service workers said they were hit by claims and service delays

Parliamentary committee to look into 'Canada Life fiasco'

Life & Health

By Abigail Adriatico

A federal government committee will investigate how the switch in providers to the Public Service Health Care Plan (PSHCP) has caused issues for public service workers.

The standing committee on government operations and estimates adopted a motion last week to look into what it dubbed the "Canada Life fiasco."

Over 1.7 million federal public servants, retirees, and their dependents were affected when the PSHCP, the largest health care plan in the country, switched providers from Sun Life Financial to Canada Life Assurance Company on July 1.

Federal workers have reported major delays in processing their benefit claims as well as the long wait times. Several families also told CBC that they were negatively affected by the switch in providers.

A report by CBC News said the parliamentary committee will investigate the following issues:

  • The quality of insurance coverage
  • The efficiency and effectiveness of the new insurance provider, particularly its online claims and telephone service
  • Mechanisms used by Public Services and Procurement Canada to award the contract
  • Measures that will be put in place to "restore the situation”

The committee will share its findings with the House of Commons. Last Friday, a list of witnesses for examination was submitted to the committee clerk.

The PSHCP is an optional health care plan that is designated for federal public service employees and their dependents to supplement provincial or territorial health insure plans.

Canada Life has said that its member contact centre is experiencing a “higher-than-normal” number of calls as it became the new administrator of the health care plan.

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