The preventable failures of Canada Life to meet its obligations under the updated Public Service Health Care Plan (PSHCP) contract will finally have an impact on their bottom line. When unions and procurement experts gave feedback on what to include in the 2023 PSHCP contract, we insisted on beefing up compliance provisions. Like many government contracts, there needs to be incentives for good performance and penalties for underperformance. Government officials have confirmed that they are now applying these penalties to Canada Life. We say, it’s about time.

Unions and retiree associations are not privy to all the details, nor were we able to insist on specific contract metrics. We urged the government to learn lessons from the previous contract with Sun Life. This included adding very specific language to measure performance. These recommendations are finally hitting Canada Life, as it continues to fail to meet contractual obligations - especially, we assume, involving its out-of-country subcontractor MSH International. 

The plan administrator has invested massively in improving its service.Our members are reporting much-improved call centre and claims approval turnaround times; however, out-of-country claims remain unacceptably slow and error-prone. Canada Life insists it is doing everything in its power to hold its chosen subcontractor, MSH, accountable. Progress is slow, but going in the right direction. These latest fines, we expect, will accelerate that progress.  PIPSC, like our peer unions across the public service, has also filed policy grievances against the poor handover as part of a larger strategy to lobby for change and restitution. 

The PSHCP covers most active and retired PIPSC members working in the federal public service, including at separate agencies. Members with questions about their plan are invited to check PIPSC’s detailed members’ guide on the PSHCP, which also has information on how PIPSC members, including those with other Health plans, can benefit from 90 percent drug coverage on their medication through our Serviceplus pharmacy partner Mednow. Some restrictions apply.

Canada Life's takeover of the updated Public Service Health Care Plan (PSHCP) is not what our members deserve.  PIPSC, our colleagues from other unions and the retiree associations have been holding stakeholders accountable for their failings  - including via a Parliamentary inquiry.  While customer service metrics show significant improvements, issues remain - including excessive turnaround times for prior authorisation and atrocious customer service when dealing with MSH International - the subcontractor for out-of-country claims.

We continue to explore all avenues to hold the employer responsible for its failings.  Some of our partner unions are turning to policy grievances.  Given the current framework for Pensions and Benefits are outside the normal grievance process, this approach presents its own challenges.  While we continue to explore the best strategies to ensure the PSHCP delivers, rest assured PIPSC is doing everything in its power to make your health plan work as promised.  We will continue to provide updates on our website.

Members with questions about their plan are invited to review our members' guide to the PSHCP - which also explains how all PIPSC members can benefit from 90 percent drug coverage through our pharmacy partner Mednow, as well as access to various telehealth options at no cost. Some restrictions apply.  If you are not able to resolve your concerns with Canada Life, please contact us at pensionsbenefits@pipsc.ca. Our Pensions and Benefits team can provide guidance. 

We have received notification of a significant cybersecurity incident affecting MSH International’s systems, a subcontractor for Canada Life responsible for managing the Public Service Health Care Plan. MSH handles emergency travel and benefits for federal public servants and their families traveling abroad or stationed overseas.

The Treasury Board is currently investigating the extent of the breach in collaboration with MSH and Canada Life. We are actively monitoring the situation and awaiting the government's response to address our members’ concerns and outline the necessary measures to safeguard their privacy and security.

This unfortunate development follows the challenging transition to Canada Life last summer, which resulted in numerous issues for members attempting to access their health insurance. It also bears a resemblance to the ongoing struggles with the beleaguered Phoenix pay system, which remains unresolved almost eight years after its troubled launch.

At present, MSH is unable to process claims or requests, and their client portal is inaccessible. However, members can still contact Canada Life by phone at 1-833-774-2700 within North America (toll-free) or 1-365-337-7427 outside of North America (collect-call).

Following over two decades with Sunlife as a service provider, the Government of Canada awarded Canada Life Assurance Company (Canada Life) the contract to administer the Public Service Health Care Plan (PSHCP). 

Following an 18-month preparatory period, this change went live on July 1, 2023. The transition has been chaotic and poorly executed – leaving public servants having to navigate major hurdles in order to access their benefits.

Our members’ concerns about this handover were on full display both at the Parliamentary Committee and the PSHCP Partners Committees this month.  

At a December 7th hearing on Parliament Hill, members of the opposition raised the failure to adequately plan and implement the updated PSHCP with senior leadership at both Canada Life and Treasury Board Secretariat. It was clear that opposition parliamentarians have been paying attention to the ongoing advocacy of federal unions and the Retirees' Association with respect to the handover. 

While improvements to customer service wait times were noted, officials could not explain why Canada Life did not take common sense measures in advance of the handover. They also could not address Canada Life's lack of understanding of the basics of healthcare practices, insurance policies, or administrative best practices.  

Treasury Board officials remained tight-lipped on the reasons why Canada Life failed to anticipate and solve the many challenges now being faced by plan members during the year-and-half before the changeover occurred. 

On December 19th – at a subsequent meeting of the PSHCP Partners Committee – PIPSC President Jennifer Carr reiterated these concerns to these same Treasury Board officials and senior leadership of Canada Life. While both parties have taken meaningful actions to improve plan member experience, PIPSC and our partners from other unions and the National Association of Federal Retirees are still waiting to see true accountability for Canada Life's egregious lack of planning. We continue to work with the Treasury Board to share with them best practices for health benefits.

PIPSC has published a comprehensive member guide on the updated plan. This guide includes information on how to navigate some of the more complex plan changes, how to challenge Canada Life decisions, and how to benefit from 90 percent drug coverage through our ServicePlus partner pharmacy, Mednow.

PIPSC, other bargaining agents, and the Retirees' Association continue to pressure the Treasury Board to demand better of Canada Life. This is not the level of service we expect or were promised. We thank our members for their ongoing patience through this frustrating transition and are taking measures to protect your interests.

PIPSC has put out a detailed guide for members of the Public Service Healthcare Plan to help navigate some of the more complex plan changes and explain the appeals processes when a claim is denied.  Members are encouraged to review this document before reaching out to Canada Life, which continues to face significant and unacceptable backlogs in its PSHCP customer support centers.  Members seeking information on their plan or have general questions, can read through our comprehensive guide and FAQ on our website before reaching out to the Canada Life call center.  A webinar is also available to explain the updated plan.

For client issues, Canada Life is prioritizing urgent matters - such as coverage for high-cost drugs.  Minor administrative and coverage errors will be addressed as capacity increases - please expect a significant delay.  Should Canada Life deny a final appeal or should you not be able to reach them for an exceptionally urgent matter - such as costly treatment coverage - PIPSC can attempt to intervene and ask your claim to be given priority.  We note that PIPSC does not have access to your Canada Life account.

PIPSC, other bargaining agents and the Retirees' Association continue to pressure the Treasury Board to demand better of Canada Life.  This is not the level of service we expect or were promised.  We thank our members for their ongoing patience through this frustrating transition and are taking measures to protect your interests.

All members (even those who don't have the PSHCP) are reminded that, through Service Plus, they can benefit from 90% coverage on prescription medication when filled at our pharmacy partner Mednow.  

The public service healthcare plan covers most PIPSC members and their dependents, including retirees working in the Core Public Administration and at many separate employers.

On Canada Day (July 1st), Canada Life took over from Sun Life as the administrator of the employer-sponsored Public Service Healthcare Plan.This plan covers most active and retired federal public service workers,  as well as their families.  At the same time of the changeover, a number of plan improvements and changes were implemented. This transition has resulted in Canada Life’s customer service centre and web portail being overwhelmed - with members reporting excessive wait times and crashed websites. While some hiccups during such a large-scale transfer are expected, it appears that the plan administrator and Treasury Board did not dedicate sufficient resources to facilitate this transition. Canada Life is taking remedial actions to improve plan member experience and the Administrative Authority continues to monitor the situation to ensure Canada Life meets its contractual obligations.

While Canada Life continues to address these issues, plan members are asked to exercise an abundance of patience.  If your concern is not urgent, we suggest waiting a couple weeks before reaching out. Most plan provisions remain unchanged, meaning that members will continue to benefit from the same or improved coverage for most medical products and services. Many issues can be corrected retroactively. Information on the updated plan, including an explanation of the legacy protections for medication, is provided in the PIPSC PSHCP member handbook and FAQs. Plan members with legacy protections do not need to contact Canada Life to maintain eligibility for reimbursement.

In this video, our experts from the PIPSC Compensation Team will walk you through: 

• A review of your current healthcare plan 
• An overview of the major changes and how they came to be
• Ways to get the most out of your benefits
• What the change means to you and how to navigate it
• And more!

Watch the webinar

PIPSC is eager to begin the long awaited review of the Public Service Dental Plan (PDSP) in collaboration with our National Joint Council (NJC) partners. This endeavour reflects our ongoing dedication to the well-being and satisfaction of our members.

Our NJC partners’ Dental Plan covers most workers in the federal public service. But, it has not been reviewed since 2018. It requires important updates to secure its value to members.  

Health benefits are not negotiable under the Treasury Board’s interpretation of federal public section labour legislation. However, the Government has adopted a collaborative approach to reviewing the benefit plans. We continue to call on Minister Fortier to issue a mandate to review the PSDP. We are hoping to enter into a plan review this year.

Most members of the Core Public Administration and members at separate agencies are covered by the PSDP. The NJC dental plan is reviewed concurrently with the identical, but separate, PSAC dental plan (which only covers PSAC members).

The NJC Dental Plan union representatives believe changes to the plan are needed to:

• reflect the increased cost of dental services and include advances in preventative dental care
• ensure the plan can meet the needs of members in difficult life situations and remain competitive in comparison to other major dental plans
• adequately protect members from unneeded treatment
• extend coverage to certain conditions (i.e. provide care for bruxism)

PIPSC is proud to participate in collaborative efforts with the government through the NJC and our plan sponsor. We recognize the important role that good oral health plays in overall well-being, and the significance of comprehensive coverage for our members.

We know our members expect evidence-based plan enhancements that maximize plan value and member health. This includes improving preventative care and expanding treatments for plan members with certain challenging health conditions. 

We also appreciate the impact that recent inflation has had on Canadian's pocketbooks. We know that dental services continue to rise along with the cost of living.

By pooling our expertise and resources, we can explore new opportunities and strategies to improve the PSDP for our members. This approach enables us to leverage the collective knowledge and insights of our organizations, producing a more comprehensive and robust dental benefits package.

If you have new suggestions for changes to the plan beyond coverage rates and caps, we invite you to email pensionsbenefits@pipsc.ca with your specific suggestions.

A reminder for all members of the Public Service Health Care Plan (PSHCP) about the transition to the new plan administrator, Canada Life on July 1, 2023.

You should have received an invitation to complete positive enrolment from Canada Life, either by email or mail. If not, check your junk email folder. If you cannot find your invitation, call the Canada Life PSHCP Member Contact Centre at 1-855-415-4414 as soon as possible. 

Our Pensions & Benefits Team has developed a guide to walk you through your plan and its changes.

PIPSC Guide to the PSHCP

Positive enrolment and consent to have claims processed by Canada Life must be completed before July 1, 2023, to ensure there are no disruptions in processing and reimbursing your or your covered dependants’ claims. This is particularly important as you will not be able to complete positive enrolment and send in a claim on the same day. Therefore, complete enrolment by June 30, 2023, to avoid being out of pocket for health claim expenses as of July 1. 

Should you have any questions, more information on the transition to Canada Life can be found here: Preparing for the Public Service Health Care Plan transition to Canada Life - Canada.ca