Extended health care plan: Overview, definition, and example
What is an extended health care plan?
An extended health care plan is a type of health insurance coverage that goes beyond the basic health services typically covered by provincial or national health insurance systems. These plans are designed to cover additional medical expenses not included in standard government health care programs, such as prescription medications, dental care, vision care, physiotherapy, and private hospital rooms. Extended health care plans are often provided by employers as part of their employee benefits package but can also be purchased individually.
For example, an employee might have a basic health insurance plan through the government, but the extended health care plan provided by their employer could cover the costs of their prescription medications, dental cleanings, and eyeglasses.
Why is an extended health care plan important?
An extended health care plan is important because it helps individuals and families cover the costs of essential health services that may not be included in standard health care coverage. It provides additional protection against high out-of-pocket expenses for non-hospital medical care. For businesses, offering an extended health care plan as part of an employee benefits package can improve employee satisfaction, attract top talent, and reduce absenteeism by ensuring employees have access to necessary health services.
For employees, these plans can reduce the financial burden of medical expenses, especially for services like medications or specialist treatments that can be costly without insurance.
Understanding extended health care plan through an example
Imagine a small business, GreenTech, offers its employees an extended health care plan as part of their benefits package. The plan covers prescription medications, chiropractor visits, and eye exams, which are not covered by the government’s basic health plan. Sarah, an employee at GreenTech, requires monthly prescription medication and regular physiotherapy sessions following a sports injury. With her extended health care plan, she can get these services without having to pay out-of-pocket for the full cost, making her healthcare more affordable and accessible.
In another example, a retiree who has basic government health coverage may purchase an extended health care plan on their own. This plan helps cover dental care and vision exams, which are essential for maintaining good health but are often not included in basic health care coverage.
An example of an extended health care plan clause
Here’s how a clause like this might appear in a contract:
“The Employer shall provide eligible employees with an extended health care plan, covering expenses such as prescription medications, dental treatments, vision care, and other medically necessary services not covered by the provincial health insurance program.”
Conclusion
An extended health care plan is an important tool for covering the extra medical expenses not included in basic health care services. For individuals and families, it provides peace of mind and financial protection from high medical costs, while for businesses, it is a valuable benefit that can help attract and retain employees. Whether provided by employers or purchased individually, extended health care plans help ensure that all necessary health care services are accessible without significant financial burden.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.