Budgeting for supplemental health insurance is very important.

by Credit Canada on November 11, 2015

how to create a budget

Credit Canada looks at how to create a budget for supplemental healthcare insurance

Okay, so the major healthcare needs of all Canadian citizens are covered by government healthcare and if you work at a company that provides a supplemental health care plan to employees then you’ve pretty much got all your healthcare bases covered. You needn’t worry about health care services of lesser urgency that the government doesn’t cover. Eye care, dental work, special care (e.g. physiotherapy) and prescription drugs are all taken care of through your company’s supplemental health care plan. But what if your employer doesn’t offer such a plan? Or what if you’re self-employed? Suddenly it’s up to you to fund your own extra health care needs.

Which brings us matters of importance concerning your money and health: How to create a budget for supplemental health insurance. 

Without a supplemental plan you can be looking at health bills that pounce on you like an angry bear in the wilderness.

How to create a budget for supplemental healthcare insurance is an important financial consideration for all families and individuals in Canada because without a supplemental plan you can be looking at health bills that pounce on you like an angry bear in the wilderness. All at once, your child needs dental care, or you need a new a pair of prescription glasses, or your spouse needs expensive prescription drugs for an unexpected, chronic ailment. You can be looking at spending hundreds or even thousands of dollars that you didn’t figure into your budget.

Take hope. In Canada there are plenty of insurance companies that offer supplemental health care plans at very reasonable rates. Maybe it’s time to set aside a new category in your budget for just such a plan. It can be smart budgeting, because for instance the cost of just one new set of eyeglasses can equate to perhaps four months’ worth of payments into a supplemental health care plan.

Without a supplemental plan you can be looking at health bills that pounce on you like an angry bear in the wilderness.

The same can be said of one or two visits to the dentist. Or to a healthy supply of prescription drugs. Do you really need a dose of financial worry to go with health problems already dogging you? A blow upon a bruise as it were?

Best then to explore the supplemental heath care plans that are available. There are plenty of plans out here, so prepare to do a little research. Don’t just jump in response to the first TV ad you see for a plan. Insurers offer detailed literature for you to read before you make a commitment. So get your hands on information, make some comparisons, then make your decision.

When you make your healthcare budget remember to check your coverage.

Here’s a chart showing areas where healthcare costs are covered only on a limited basis – or not at all – by the government. Your supplemental plan could cover it all.

Prescription Drugs Limited coverage for lower income families and seniors.
Dental Checkups and Treatment Limited coverage.
Vision Coverage Limited coverage for seniors.
Hospital Stay Basic ward accommodation.
Specialized Care:
Chiropractor, Chiropodist, Naturopath, Podiatrist, Registered Massage Therapist, Psychologist, Physiotherapist, Acupuncturist, Speech Pathologist/ Therapist. Limited coverage in only some cases.
Homecare and Nursing Limited coverage for seniors. Limited coverage in only some cases.
Medical Equipment and Supplies Limited coverage for seniors. Limited coverage in some cases.
Emergency Medical Health Insurance for Travellers Limited coverage for seniors.$100 to $400 per day for hospital only (average hospital stay in the U.S.: $2,000 to $2,500 per day).
Personal Emergency Response Not covered. Limited coverage for seniors.
Hearing Aids Not fully covered. Limited coverage for seniors.
Accidental Death and Dismemberment Not covered. Limited coverage for seniors.
Catastrophic Coverage Limited coverage for seniors. No coverage except for financially qualified individuals.

 

* Blog content provided through the support of platinum sponsors of Credit Education Week Canada’s Focus Magazine.

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