Medical bankruptcies in Canada: Introduction
As Canadians, we have a tendency to assume that our universal health care system will cover everything in a health crisis. We don’t focus on the possibility of medical bankruptcies in Canada like Americans do. The Canadian health care system is extremely comprehensive. But, there is no such thing as 100% coverage for every health care issue that may arise. As an example, the cost of some prescription drugs can be prohibitive.
Medical bankruptcies in Canada: Additional medical insurance plans
Most insurance plans dictate that only a generic substitute can be covered by the insurance. What if it is a new or unique drug where there is no generic version? Some people think because all the health care costs are paid for they will not suffer financially. Many people do not consider the possibility that poor health will prevent them from working. But what if they are not covered by a disability plan that will replace their income. They also were not able to build up an emergency savings plan for when of such an event.
The likelihood is that the older we get, the more reliant on prescription medication we’ll become. Did you know that paramedical services like physiotherapy is not covered, or only partly covered? And, coverage varies from province to province.
Medical bankruptcies in Canada: A health crisis can trigger a financial crisis
Sun Life Financial recently did a survey that clearly demonstrates that a health crisis can definitely trigger a financial crisis:
- 78% of Canadians haven’t saved or planned for a health event
- 42% of Canadians have experienced financial hardshipfrom a health problem
- 38% stated that they don’t have health insurance
Medical bankruptcies in Canada: You may be retirement age, but can you afford to retire and lose your extra health coverage?
If you’re fortunate enough to work for a company that provides health care benefits, then this issue may not affect you today; but what will happen once you retire or work for a company that doesn’t provide benefits? At risk are many self-employed people if they don’t have an extended health care plan if a serious health care event takes place.
We’ve written several blogs discussing that many Canadians are working well past the age of 65 to make ends meet. In the Sun Life Financial survey 41% of people who retired sooner than expected cited personal health care as the primary reason. What would you do if you had to retire sooner than expected and had to pay for medication and services not covered in our universal health care plan?
Medical bankruptcies in Canada: How to solve a financial crisis
If you’re in the midst of a financial crisis due to a health crisis, or for any reason, contact Ira Smith Trustee & Receiver Inc. We understand how stressful a time this can be for you and we can get you through this. If you follow our plan, then before you know it you’ll be able to regain your former quality of life. Give us a call today and you’ll be well on your way to Starting Over, Starting Now.
