Mind the benefits gap

Health insurance spending jumps – but there’s a widening gap between premiums paid in, benefits paid out
By Liz Bernier
|Canadian HR Reporter|Last Updated: 04/20/2014

Spending on private health insurance in Canada has more than doubled since 1991 — but a recent analysis indicates we may not be getting much bang for our buck.

The overall gap between premiums paid in and benefits paid out totalled $6.8 billion in 2011, according to “The Increasing Inefficiency of Private Health Insurance in Canada” in the Canadian Medical Association Journal.

That gap between the premiums insurers take in and the amount they pay out in benefits has increased threefold over the past 20 years, found the paper. And the widening gap should raise some critical questions for employers.