Federal employees and retirees struggle with delayed and shorted insurance claims after provider switch
Federal government employees and retirees, who have been travelling or working overseas, report significant delays and shortfalls in their medical insurance claim reimbursements following a change in insurance providers, as reported by CBC.
As of July 1, 2023, the insurance provider for 1.7 million federal workers, retirees, and their dependents transitioned from Sun Life to Canada Life, a switch that was intended to be seamless but has resulted in complications for many public servants.
Canada Life subcontracted MSH International to manage all overseas claims from the same date, covering both emergency travel medical coverage and comprehensive coverage for those stationed overseas by Global Affairs Canada (GAC).
Employees and retirees, like Sonia Hooykaas and Roseline Roy, have faced lengthy waits for reimbursement, often receiving less than the claimed amounts with minimal explanation.
Hooykaas, stationed in the U.K. since November 2020, reported submitting $57,500 in eligible claims but only receiving about $35,000 back.
Similarly, Roy recounted a harrowing experience during a trip to Greece, where she incurred $22,000 in hospital bills and $5,500 for a flight home, only to face a reimbursement ordeal.
The transition has led to a backlog in claims processing, exacerbated by a “cybersecurity incident” at MSH on February 9, which temporarily halted claims processing. MSH has acknowledged the issue and claims to have taken steps to address the service levels and clear the backlog, including hiring more workers.
Meanwhile, GAC has advanced $3m to employees to cover medical expenses, a significant increase from the initial $1.8m reported near the end of January.
Both Hooykaas and Roy have been in communication with MSH regarding their cases, with promises of reviews and further contact, yet resolution seems slow.
The Professional Association of Foreign Service Officers (PAFSO) has expressed concern over the funds being diverted to cover medical expenses instead of their intended purposes abroad.
The Treasury Board, in response to these issues, has stated that improvements have been made in response times and that they are actively working to address ongoing problems with Canada Life and MSH. However, the contract termination has not been considered.
This situation highlights the challenges faced by public servants and retirees in navigating the complexities of medical insurance claims while abroad, impacting their financial well-being and confidence in the system.
