Banning employer-paid virtual health care could hinder access to essential health services for 10 million Canadians

What is Employer-Paid Virtual Health Care and Why Is It Important for Canadians?

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Employer-paid virtual care, provided as part of an employee benefit plan, allows Canadians to access medical consultations and treatments remotely, typically through online platforms, phone or video calls. These services are intended to complement existing public health services as well as offer support to the millions of Canadians without regular access to a medical professional.

Employer-paid virtual care supports 10 million Canadians’ access to healthcare, reduces the strain on our overburdened medical system and saves public funds.

The Issue

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In 2023, Ottawa announced its intention to produce an Interpretation Letter on the Canada Health Act to rightly close certain loopholes that have led to Canadians being charged out-of-pocket for medically necessary services. The letter is expected to be released soon.

However, unless a clear exemption is provided, employers will no longer be able to offer virtual care through their workplace benefit plans. This will force millions of Canadians into already overburdened ERs and walk-in clinics for the treatment of common ailments that could have been addressed remotely.

The Facts

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Canadians do not pay for these services out of their pocket – they are covered by the employer.

• Through secure videoconferencing platforms, employees and their family members have unlimited access to virtual care without having to pay for consultations.
• These services are intended to complement existing public health services and offer support to the millions of Canadians without regular access to a medical professional.
• Approximately 10 million people in Canada currently have access to virtual care platforms through an employer-funded health benefits plan.

Employer-paid virtual care adds capacity to and reduces the strain on our health system.

• Over 50% of people using some virtual care providers do not have access to a family doctor. Without this service, these Canadians would have to relay almost solely on walk-in clinics and the ER. 
• Providers offering virtual care do so in addition to their work in the public system and often outside of traditional family practice hours. This means virtual care services add capacity to our health system – at no cost to patients or governments. 

Employer-paid virtual care saves governments money.

• By preventing unnecessary emergency room visits and hospitalizations, virtual care saves governments an estimated $52 per consultation, according to a 2022 AppEco Study.

People value their employer benefits – governments should not be eroding them. 

• Nearly 90% of Canadians believe their workplace health benefits are a positive example of employer support for healthcare. 
• At a time when Canadians face significant economic pressure, employer benefit plans help make life more affordable. In fact, 84% of Canadians say workplace plans have helped them with the cost of living. 
• Eroding these benefits would also negatively affect businesses, employers and employees by decreasing workforce productivity and increasing healthcare costs for individuals and employee absenteeism rates. 

What’s Next

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The government should focus on the core issue: Canadians paying out of pocket for necessary medical services. This can be done while still allowing employers to offer virtual care benefits at no extra cost to patients.

Any communications around the provision of virtual care in the public system should explicitly state that employer-funded virtual care is permitted.