There has been some important news recently out of the Ontario Medical Association, with regard to the OPIP insurance program. On January 1, 2019, the premium structure for the OPIP coverage will be changing from an annual flat fee to an annual contribution, plus a monthly premium.
Due to the substantial increase in claims over the past 10 years, along with an increased number of insured members and the rising cost of health care, the costs for the extended health care and critical illness will be increasing. Based on the projected costs, starting January 1st, each member’s premium will be subsidized by at least 70% with the remainder being paid for by the member, example below.
Each and every member will pay their annual contribution of $180 each January. Depending on the type of health coverage in place will determine the monthly premium you will pay moving forward. Single individuals will not be required to pay as much as a family with children.
This month you will be receiving a personalized letter with a breakdown of your estimated costs for 2019, along with details of the monthly premium beginning in January.
Our feelings about these changes, is that the ultimate benefit provided through OPIP, still far exceeds the cost. We are very strong believers in extended health plans, but even more so in critical illness coverage and when comparing the cost/value of the OPIP to anywhere else in the industry, the value for your dollar spent is still much greater with the OPIP plan.
One point I will make is that, you should have a private Health Spending Account (HSA) in place a side from this health coverage or any other extended health plan you have in place. A private HSA allows you to run any medical expense through your business before tax. Whether it is the entire expense or just an uncovered portion of an expense, an HSA will save you hundreds, if not thousands of dollars each year. The best part is that you only pay for it as you use it.
Please feel free to reach out to discuss in further detail.
