Financial Planning -> Save Money -> Private extended medical coverage
Private Health Care Plans - Costs May Exceed Benefits
Private health care plans (extended health benefits) may not be financially worthwhile. Your basic health care is covered by your provincial medical insurance. Some provinces also cover a portion of prescription drugs.
If you are considering a private health care plan, ask the following questions:
 | is there an annual maximum coverage? |
| is there a lifetime maximum coverage? |
| are pre-existing medical conditions covered? |
| are all prescriptions covered, or are some not eligible? |
| are all dental procedures covered? |
| are out-of-province costs covered? |
| what is covered besides prescriptions? |
If you are leaving your job and wish to keep the same health care plan, it may be possible to continue coverage without a lapse by paying the premiums yourself. If you have a lapse in coverage, you may not be covered for "pre-existing conditions". For example, if you are diabetic, any costs related to this disease may not be covered by your plan.
If you already have a private health care plan that covers all your existing medical conditions, if it comes close to paying for itself it is probably worthwhile to keep it, as your health care costs will probably increase as you age. Make sure you know, however, if there is a lifetime maximum coverage and if so, how much it is.
If your income is low, your prescriptions and some other health services may be covered by a provincial government program. For links to information on provincial health and drug plans for seniors and others, see our Government Benefits, Programs and Services pages.
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Tax Tip: Know the terms and conditions of a private health care plan before enrolling or changing your plan.
Revised: October 26, 2023