Canadians report medical debt despite public healthcare, raising questions about coverage shortfalls
Seventeen percent of Canadians have gone into debt to pay for medical expenses, according to a survey from Compare the Market AU.
The findings underscore growing concern about out-of-pocket costs in a country where public healthcare is meant to cover essential needs.
The top driver of medical debt was dental work, affecting 36 percent of respondents. Expensive prescription medication followed at 32 percent, while 25 percent reported debt from life-threatening emergency surgeries.
Other contributing factors included specialist consultations (22 percent), elective surgery (21 percent), and mental health care (17 percent). Respondents could select multiple causes, indicating that the burden often comes from more than one type of care.
Despite Canada’s universal healthcare system, the survey results suggest significant gaps.
“Canada is famous for their universal healthcare system, but even things that are covered may not be completely free. In addition, it doesn’t cover everything,” said Steven Spicer, executive general manager of health at Compare the Market.
He advised Canadians to review their private health coverage closely, including employer-sponsored options, to understand what’s excluded.
As per Benefits and Pensions Monitor, plan sponsors are facing pressure to address these very gaps.
Cost-of-living concerns, rising drug prices, and the growing demand for flexible care options are prompting employers to redesign benefits offerings.
The 2024 Drug Trends Report from GreenShield revealed that drug costs rose 11 percent in the last year, with chronic disease medications and specialty drugs among the main contributors.
David Adams, senior vice president of insurance business at Medavie Blue Cross, told Benefits and Pensions Monitor that the post-pandemic shift in healthcare access has been transformative. “Plan members are really healthcare consumers,” he said.
Adams highlighted the role of digital care in improving access and convenience—especially for younger members—and called on plan sponsors to improve both service delivery and education about available options.
While some Canadians say they would take on medical debt again in the future, 25 percent said they would not. Among those willing, 23 percent said they’d take on $1,000 to $5,000, while only 5 percent said they wouldn’t consider any future debt at all.
Employers are responding by expanding coverage options.
According to Benefits and Pensions Monitor, benefit packages now increasingly include virtual therapy, wellness programs, and chronic disease support.
Still, gaps remain—especially around dental care, which remains a top out-of-pocket cost despite new public measures like the 2024 Canadian Dental Care Plan for seniors.
The disconnect between public coverage and real costs is shifting expectations around benefit plans.
As Adams noted, “Providing the service is one thing, communicating that the services [are] available is another.”
With survey data pointing to growing debt burdens, both employers and insurers may face continued scrutiny on whether benefit plans truly meet employee needs.
