The switch to Canada Life left many federal public servants begging for benefits

On July 1, 2023, the federal government switched insurance providers from Sun Life to Canada Life.

The transition was supposed to be seamless. For hundreds, if not thousands, of federal public servants, retirees and their families, it was anything but.

Within days of the switch, CBC began receiving phone calls and emails from Canadians affected by the change — people whose benefits had suddenly and for no apparent reason been cut off, leaving them on the hook for expensive treatment or medication.

When they tried to reach the company to resolve their issues, many spent hours on hold. Some never got through to an agent. Overnight, families across the country were suddenly left begging for benefits.

CBC Ottawa shared many of their stories, and in several cases Canada Life swiftly resolved their problems. Months later, the company apologized before a parliamentary committee for what their clients had gone through.

Here are some of their stories.

The Hartlings

Worried about whether her monthly $1,800 medication would be covered, Dorène Hartling told CBC she called Canada Life close to two dozen times in one week but never reached an agent.

Her pharmacist had warned that with other customers insured under the Public Service Health Care Plan, it had been hit-and-miss.

Hartling was the first to share her Canada Life story with CBC.

Louise Sullivan and Mike Fairhead

 

With her husband’s physio benefits reduced, she’s worried he’ll lose the progress he’s made

5 months ago

Duration 1:38

Because of changes to the Public Service Health Care Plan, Louise Sullivan said her husband Mike is giving up the majority of his physiotherapy treatments which, after a stroke eight years ago, have allowed him to retain some mobility and regain some independence.

Louise Sullivan and Michael Fairhead, both retired federal public servants in their mid-60s, enjoyed an active life before Fairhead suffered a stroke eight years ago and lost function on most of his right side.

Coverage for his physiotherapy had been practically unlimited, but under Canada Life it was suddenly capped at $1,500 a year, forcing the couple to reduce Fairhead’s treatment to just once a week.

The McLaughlans

For the McLaughlan family, everything changed in July 2022, when their two-year-old daughter Briar nearly drowned and suffered brain damage.

The little girl defied the odds, and after spending four months in hospital, she returned home to Kingston, Ont.

After the switch to Canada Life, the family had to fight for the same level of coverage that Briar had received before the accident, forcing them into debt and facing difficult choices due to their mounting costs.

Gloria Timothy and her granddaughters

 

‘The bills have added up:’ Canada Life switch leaves family unable to access late father’s military benefits

 

Gloria Timothy has been caring for her granddaughters for nearly six years, but since the federal government’s switch to Canada Life insurance coverage, she’s been suddenly unable to claim the girls’ medical benefits.

Gloria Timothy has been caring for her two teenage granddaughters for six years now. The girls are entitled to medical benefits through their father, a deceased Canadian military veteran. Their mother is no longer in their lives.

Under Sun Life, Timothy had no problem claiming expenses for the girls’ therapy and other medical needs, but that all changed after July 1.

Despite numerous attempts to explain her situation to the company, Timothy said Canada Life agents refused to deal with her because she’s not officially listed under her son-in-law’s plan.

That left Timothy, who’s retired and on a fixed income, paying out of pocket and facing some difficult choices.

Elizabeth Stagg

Elizabeth Stagg said she was effectively left to starve because the coverage for the formula she needed to live was significantly reduced when the federal government switched insurance providers.

That left Stagg, whose intestines had stopped functioning after she suffered a blood infection, on the hook for hundreds of dollars a month.

“It’s scary because [with] the economy, everything is so expensive these days, just trying to find the money to live,” Stagg said. “And here I may not be able to find the money to eat.”

The Namiesniowskis

 

She couldn’t afford her asthma treatment after coverage changes with Canada Life

Janice Namiesniowski was feeling hopeful when she started treating her asthma with Xolair, an injectable drug that costs $2,264.70 per treatment. But she can’t afford it unless it’s partially covered under her insurance plan, and her coverage was suddenly cut off when Canada Life took over the Public Service Health Care Plan in July.

For decades, Janice Namiesniowski’s severe asthma left her feeling like she was “breathing through a straw.”

Then she tried an expensive new drug called Xolair, which was largely covered under her husband Conrad’s health plan. The transformation was remarkable.

But after the switch to Canada Life, their coverage ended and Namiesniowski was forced to stop taking the drug.

Federal committee gets involved

In October, the federal government announced a parliamentary committee would look into how the switch to Canada Life had left many public servants without the coverage they’d been promised.

Among the details the committee will study is the process by which the contract was awarded to Canada Life, as well as possible measures to restore adequate coverage for federal public servants and their dependents.

Hundred of emails

Following a week-long series telling the stories of Canadians affected by the insurance switch, CBC heard from many more who’d had similar experiences.

While Canada Life had intervened to resolve some cases, it quickly became evident there were many, many more awaiting resolution.

Who’s to blame?

The unions representing public servants say the federal government should have done more to ensure a smoother transition when the country’s largest health-care plan switched to Canada Life.

The Public Service Alliance of Canada (PSAC) compared the switch to the adoption of the Phoenix pay system, which left workers underpaid, overpaid or not paid at all.

An apology

Representatives from Canada Life apologized at a House of Commons committee studying its rocky transition to becoming the administrator of the country’s largest health-care plan.

Representatives of Canada Life appeared by video call before the House of Commons standing committee on government operations and estimates.

“To those who had a poor service experience these past months: we are sorry,” said Ryan Weiss, Canada Life’s vice-president of national accounts.

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