The PSHCP’s transition to Canada Life was both initiated and implemented by the Treasury Board Secretariat in a procurement process that began back in 2018.
On July 1, 2023, one of the largest private health-care plans in Canada, the Public Service Health Care Plan (PSHCP), switched providers to Canada Life Assurance Company, bringing more than 1.7 million federal public servants, retirees and their dependents with them.
And one of the questions we’re asked the most is, why? Why did the PSHCP move from Sun Life to Canada Life? Let’s dive in.
The PSHCP’s change to Canada Life from Sun Life was initiated and implemented by the Treasury Board Secretariat. As the plan sponsor, the Treasury Board cyclically engages in a competitive retendering of the PSHCP service contract as part of the public service benefits plan process. The last contract was awarded in 2009.
On Dec. 1, 2021, the federal government announced that Canada Life was awarded the PSHCP contract. The new contract resulted from a Public Services and Procurement Canada procurement process that began in 2018, has a term of up to 12 years and covers the following administrative services for the PSHCP:
- Claims processing and claims payment services.
- Positive enrolment and member management services.
- Audit and claim verification program.
- Reporting services.
- Member communications and information services.
- Provider communications and information services.
The transition to Canada Life was unrelated to the new PSHCP improvements and changes that came into effect July 1, 2023, and the procurement of a new insurer for the PSHCP was not part of the renewal negotiations.
Where do we come in?
In its role as pensioner representative, Federal Retirees engaged with Treasury Board from the very beginning, clearly outlining its expectations for a smooth transition. The Association also identified what was needed to support retirees during the process, including a reliable call centre and clear communication as well as support for paper enrolment forms.
The contract for the PSHCP is an agreement between the Government of Canada and Canada Life. In that way, it has been their joint responsibility to deliver a seamless transition, and to monitor and correct performance issues. It was also their responsibility to ensure that appropriate resources were in place for a change that had been planned for over a year.
Now what?
The Federal Retirees team understands that the transition to Canada Life has been challenging for many members. We take member feedback seriously, recording member experiences and regularly sharing our community’s priorities with Treasury Board. As new information becomes available, we will also continue to keep our members informed through our social media feeds, monthly newsletter and PSHCP information hub.
If you have any questions about your PSHCP claim or coverage, the best and quickest way to get the answer is by reaching out to Canada Life directly. They’ve implemented a dashboard to indicate current wait times and claims processing times, helping plan members avoid lengthy waits on the phone.