Medical debts? Don’t we have free healthcare?
As Canadians we pride ourselves on our universal healthcare system, which we view as free healthcare. We therefore assume that medical debts cannot arise. However, when I read that Pamela Bowes, manager of the Money Matters and workplace programs at Wellspring in Toronto recently said, “I have had more people tell me they worry more about money than they worry about cancer”, I was quite frankly shocked. Clearly Canadians don’t understand that even though we have universal healthcare, we can get into serious financial problems due to medical debt.
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Medical debts without enough private insurance coverage
Here’s the reality of healthcare debt in Canada. According to a 2014 BMO Wealth Institute Report:
- Without private coverage, Canadians can expect to spend an average of $5,391 a year on out-of-pocket medical dental costs after 65
- Disability poses a large threat: Between ages 65 to 74, 26.3% will be become disabled
- If the disability is mild, there may be a need for changes to a home, such as electric wheelchairs ($2,050 and up) and other devices such as scooters ($1,000-$5,000) and walkers ($150 and up)
- If a person is severely disabled, he/she may need a personal care worker at a cost of $16 to $30 an hour or a registered nurse at a cost of $24 to $76 an hour
Medical debts for long-term care
Long-term care is another area where Canadians are totally unprepared. Stephen Frank, vice-president of policy development and health at Canadian Life and Health Insurance Association reports that 75% of Canadians have no long-term financial plan for long-term care if they need it. Long-term care isn’t covered under the Canada Health Act. Home care may be covered, partly covered or not covered at all depending on the province you reside in and our annual income. According to Statistics Canada there is about a:
- 10% chance of needing long-term care by age 55
- 30% chance by 65
- 50% chance by 75
A nursing home in Ontario can cost between $14,000 and $132,000 annually, while long-term care averages $20,800 to $29,300 (Senioropolis). Add to this the cost of certain medical treatment and the medical bills could pile up. Provincial plans cover most prescription drugs for seniors 65 years of age and older, but younger retirees have to pay for their medications unless they have an extended healthcare plan. And, then there are certain drugs that are not covered under the provincial plans, regardless of your age. This may leave a Canadian with thousands of dollars of medication debt.
Do you have too much debt? Contact us
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If you’re struggling with a mountain of unexpected medical debts and need medical debt help, or any serious debt issues, help is just a phone call away. Starting Over, Starting Now we can help you deal with what seems like insurmountable debt and breathe easy again. Contact the Ira Smith Team today.
