Canada has a government-funded national health insurance program, often referred to as Medicare. Private health insurance is intended to cover certain services that the government system does not cover or covers only partially. In Canada, most dental and vision care, and a considerable proportion of outpatient drug costs, are funded privately. Consumer data for this report underline the importance of these types of insurance, with 74% of Canadians having prescription drug coverage, 70% dental and 64% eye care insurance.

The market for supplemental health insurance continues to grow at a steady rate with annual premiums of $30.9 billion in 2012. In 2014, the market is estimated to grow at 5.5%, with expected premiums reaching $34.4 billion. Increased life expectancy leading to an aging population and an increase in health risk factors should ensure a stable rate of growth for the market in the coming years.

This report covers the drivers of the supplemental health insurance market in Canada, consumer data related to ownership, choice of provider, purchase decision factors/triggers, emerging trends, brand communications/social media and attitudes towards health insurance.

Definition

Government or public plans provide coverage of core health care services, such as hospital care and most physician services. The majority of this report (except for a section on satisfaction with government health care) covers the topic of private health insurance.

This report covers the topic of supplementary or private health insurance, focusing on non-core services that are not covered, or not fully covered, by government health care. These may be group plans sponsored by employers, unions and associations or individual plans that consumers purchase for their own use.

The market size relates to values of premiums collected by health insurance companies for coverage of health care-related services that are not covered by government health care excluding provincial Blue Cross organizations and other not-for-profit health care benefit providers.

Values at constant 2014 prices are devised using Mintel’s deflator which has been tailored to the Canadian market.

Excluded

This report excludes all non-health-related insurance such as life, auto, home and non-medical-related travel.

Abbreviations

AD&D Accidental Death & Dismemberment
AMF Autorité des marchés financiers
BMO Bank of Montreal
CAA Canadian Automobile Association
CHMS Canadian Health Measures Survey
CIBC Canadian Imperial Bank of Commerce
CIHI Canadian Institute of Health Information
CLHIA Canadian Life and Health Insurance Association
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